crypto-passive-income-ideas

Best Crypto Passive Income Ideas

A passive income is a type of earnings made from enterprises you are not fully involved in. Crypto passive income typically involves investing your money in a particular crypto asset or platform then waiting for it to generate profit. In most cases, you can earn crypto with little to no effort – just buy and hold crypto to make a return (also known as HODLing).

Earning crypto is one of the best things about blockchain technology. You buy a crypto asset to hopefully sell it at a profit when the coin’s price rise significantly sometime in the future (like the stock market).

However, making money with cryptocurrencies is like trading them; you need to know when to join the train and get off. For some coins, you may have to HODL for six months, while for others, it may take up to five years.

Best Ways to Earn Crypto Passive Income

The cryptocurrency market has exploded with new coins and various options to earn money from crypto. Here are some of the best crypto passive income ideas right now.

1. Try Automate Savings

The market is filled with a lot of volatility, and there are continuous fluctuations in the prices of coins in the market. So, if you are not  willing to risk your money, it’s wise to use auto savings accounts to earn returns on your cryptocurrency holding. This method operates exactly like automated fiat savings. Basically, these are cryptocurrency savings accounts that use your funds to provide overcollateralized loans to institutional borrowers.

Examples of such platforms include BlockFi, Nexo, and crypto.com. Check Yean Finance, Anchor, and Orion Money. If you’re interested in decentralized savings platforms, These DeFi protocols allow users to earn yields on their stablecoin deposits like USDT, USDC, etc.

2. Become a Liquidity Provider

Becoming a liquidity provider is a great way to earn passive income. Decentralized exchanges (DEX) offer liquidity pools that allow users to earn yields by contributing to the pool. When you  become a liquidity provider of, say, USDT, you help maintain the peg (weighting of the two or more assets held in a pool) and get paid interest for doing so. You also earn a portion of the trading fees generated by the platform. Easy earning, right?

3. Start Yield Farming

Yield farming can be a great strategy to obtain additional income with your cryptocurrency. If you are already providing liquidity, It involves staking your tokens to a specific farm and earning yields after some time. Most commonly, users earn a fraction of the rewards based on their contribution to the pool. So, if you bring 5% to the pool, you’ll generally receive 5% of the rewards it offers.

PanckakeSwap, SushiSwap, and AMMs are among the most popular yield farms on the market today. The best thing about these platforms is that you can farm yields in either a newly issued cryptocurrency or their native utility token.

4. Stake Cryptocurrency

Staking is a form of Proof Of Stake (POS) mining in which you are paid for locking a fixed minimum number of coins to participate in securing the blockchain. The more crypto tokens you lock up, the greater the rewards you’ll receive.

Staking is an excellent way for anyone who wants to earn money through cryptocurrency since the yields are always generated passively once staked. There’s little to no intervention on your side. However, to protect yourself from market volatility, you may choose to liquidate your earnings on a regular basis.  Nonetheless, consider retaining the token for the long term if you believe it will rise in value.

⭐️ You might be interested in – Best cryptocurrency for staking

5. Play to Earn Games

With the rise of play-to-earn (P2E) video games, earning passive income from playing video games is now a reality. You can also make use of your in-game assets and characters (NFTs) by exchanging or selling them for real-world currency.

If you’re looking to start making money with P2E games, then check out games like hi Play, Axie Infinity, The Sandbox, Aliens World, etc. These games allow you to monetize your playing time by completing objectives or trading NFTs (non-fungible tokens) in exchange for cryptocurrency rewards.

6. Hold Yield-Bearing Tokens

A yield-bearing token is a cryptocurrency that pays dividends to the holder. Yield-bearing tokens are similar to stocks in that they provide an incentive to hold onto the tokens and help grow the value of the business. They also entitle holders to dividends – just like stocks.

In many cases, simply holding the yield-bearing tokens is enough to earn rewards. However, other tokens may require KYC verification to claim your yields. Kucoin Shares (KCS) and AscendEx (BTMX) are some of the popular yield-bearing tokens to check out. Both coins pay a fraction of their trading fee revenue to token holders.

7. Consider Crypto Lending

You can also consider the option of lending your crypto and earning interest on it. You can get started with crypto lending in four different ways:

  • Peer-to-peer lending – a P2P platform matches lenders with borrowers. However, it gives you the freedom to decide the amount you want to lend and the interest you intend to generate on loans.
  • CEX lending – You rely solely on a centralized platform to facilitate your crypto lending activities. Also, interest rates are fixed as well as the lock-up periods.
  • DeFi lending – Unlike P2P and CEX lending, there are no intermediaries involved in DeFi lending. You execute lending services directly on the blockchain with the aid of smart contracts.
  • Margin lending – This method involves lending your cryptos to traders interested in using borrowed funds to trade, who then repay the loans with interest.

8. Try Cloud Mining

Cloud mining allows users to mine Bitcoin or other cryptocurrencies without managing the physical hardware, which is complicated and time-consuming. Instead, you pay a platform that offers crypto mining services to rent or buy their machines.

It allows individuals to buy into mining pools without having to deal with the hassle and risk of purchasing expensive hardware, installing it, and making sure it’s compatible with the rest of the network.

Nevertheless, it is vital to conduct due diligence before opting for cloud mining to avoid getting scammed.

Earn Crypto Passive Income with hi.com

If you are looking for passive income that can consistently generate revenue, then perhaps investing in HI may be an answer to your financial objectives. HI is one of the leading cryptocurrencies you can earn passively daily. You can earn HI through:

  • Staking HI to receive yields every week
  • Inviting your friends to join hi.com
  • Accepting gift cards from friends and family on hi
  • Playing games on hi to earn coins that you can then swap (exchange) for ETH, BTC, or fiat

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