How to Earn Passive Income with Cryptocurrency

Passive income in cryptocurrency is surely one of the most interesting methods of enlarged holdings, without permanently buying and selling. There are several strategies for earning passive income by crypto investors, ranging from staking to lending. In this blog post from Dex-Trade Academy, we will examine the top ways to earn with cryptocurrency passively.

1. Staking

Staking refers to the process of holding certain cryptocurrencies to help in validating the transactions on their blockchain and gaining rewards as a result. Ethereum 2.0, Cardano, and Polkadot are some of the popular options for staking.

• How it works: You lock up your coins, supporting the network, and earn rewards.

• Earnings: Staking rewards can vary from 5% to 20% per annum, depending on underlying network consensus.

2. Yield Farming

More popularly known as yield farming in the DeFi space, it means lending one's crypto to liquidity pools in return for rewards in interest.

• How it works: You provide liquidity to decentralized exchanges such as Uniswap; in return, you collect some of the transaction fees or more tokens.

• Earnings: Returns may outstrip 20%, to which the risk of impermanent loss should be added.

3. Crypto Lending

Crypto-lending platforms like BlockFi and Celsius allow for a procedure in which you lend your assets against interest.

• How it works: You lend your crypto to borrowers, in return for regular interest payments from them.

• Earnings: Up to 12% interest, depending on the platform and cryptocurrency.

4. Running a Masternode

Hosting a full node of the network of any particular cryptocurrency, for instance, Dash, while getting paid in rewards for running a masternode.

• How it works: The masternode operators support the network on condition of regular payouts.

• Earnings: It will return a high value, although the initial investment, compared to other strategies, is higher.

5. Crypto Savings Accounts

Crypto savings accounts work just like bank savings accounts, whereby you deposit your crypto in them and get interested in due time.

• How it works: You deposit crypto in a savings account and earn interest in due course.

• Earnings: Interest rates are usually between 4% and 8%.

Conclusion

With cryptocurrency, passive income can be earned through staking, lending, yield farming, and many other methods. Keep in mind that the art of such high returns involves weighing the risks against the rewards.

At Dex-Trade Academy, we provide the knowledge you need to make smart decisions in the world of crypto. Ready to start earning passive income? Visit Dex-Trade today!