Earn Passive Income With Crypto

Earn Passive Income With Crypto

CeFi Lending Let's start with the safest one, which is Centralised Lending (CeFi).

You can lend your funds to borrowers using different platforms, but the main idea is that you get your account funded, start lending, and then watch your initial amount grow without a lot of monitoring required.

Usually, these platforms have an insurance fund fueled by some taxes that are charged on top of the loans themselves or in transactions fees.

DeFi Lending It's still a way to lend out your funds and get rewarded with interest rates, but the intervenients involved in the transactions are completely different.

With DeFi the loans are done through smart contracts using different protocols on top of some blockchains. Most loans are enabled by the ethereum mainet but others include binance smart chain, polygon, avax, fantom...

Interest rates are very good but there are some risks such as smart contract hacks and exit scams.

Yield & Liquidity Mining By providing liquidity you are actively helping decentralized exchanges (DEXEs) to enable transactions between different coin pairs while also getting rewarded in the meantime.

The main risk is what's called impermanent loss where a provider can lose funds of one pair if the price has a massive fall.

Staking Earn by locking your funds for a specific term and help maintain transactions on a specific blockchain through proof of stake (POS).

You can start staking on supported wallets or by just subscribing to staking investment products on sites like binance earn and kucoin finance.

Avoid staking projects you believe not to be viable and consider market movements before locking your crypto to avoid coin depreciation (FIAT Value in Dollar, Euro, etc).

Dividend Tokens Some tokens you can just hold on to your account and earn more of them in form of trading fees charged on an exchange.

There are still some currencies that work like this however the most common products are just savings and staking in most exchanges.

Trading Automation Using trading bots to execute trades is my personal favorite. I use grid bots every day to generate passive income with volatility and price variations. And the rates are pretty good.

Just remember that software does what you instruct it to do, so if you give it bad instructions or sell your assets early it's you who is always pulling the trigger.

However, it's easier than before as there are a ton of AI strategies and recommended settings one can use from the get-go! But knowing a bit more about the market will help you get higher returns, nonetheless.

Trading automation can be used in different ways. Some use portfolio management tools instead of trading bots to rebalance their portfolios and invest for the long term which usually translates into more gains when compared with just holding.