How to make passive income from cryptocurrency
In today's blog article I'm going to discuss a special and favorite topic of mine. Which is how to make passive income from your cryptocurrencies. Now there are many ways to go about doing this so you must read the whole blog so that you are well informed. We will discuss many ways you can start earning I will show you how to do it from a small crypto bag to what to do if you have a big bag. With all that being said let's now get into the rest of the blog article.
Staking
One of the most common well know ways to make passive income from your crypto that I'm sure many of you know about if you've been in crypto for long enough is staking your cryptocurrencies. Staking allows you to validate the network like you would if you were mining crypto but instead of mining you lock up your cryptocurrencies. Now not all cryptos make you lock up your cryptos some allow you to stop staking whenever but most make you lock it up. The time period on lock-ups varies between crypto and validators so there isn't a baseline number I can give you. The APY also varies between cryptos and validators. Although most cryptos usually provide under double-digit APY's. There are all kinds of ways to start staking some of the easiest ways to start doing it are through exchanges some like Binance and kucoin do offer staking.
Farming/liquidity pools
Similar to staking but different in many ways another way to make passive income is through farming and liquidly pools. Now farming and liquidly pools are similar but also a little different. How they differ is when you farm you usually don't have to lock up coins compared to liquidly pools which most of the time force you to lock up coins and usually for a long time. Another difference is how they work farming APY is basically locking up a coin to provide value to the market without validating like staking. liquidly pools on the other hand allow you to provide actual value and money to a project or cryptocurrency. liquidly pools also carry more risk than farming because a pool can be pulled out from under you which can leave you with no money or coins with any value. Some coins specifically meant for farming will have their farms which you can use to start farming or some dexs(decentralized exchanges) also provide farming. There are also all kinds of ways to find liquidly pools some sites you can find allow you to find liquidly pools specifically or sometimes dexs can provide pools. APY rates vary between sites and exchanges and cryptos.
Lending
Very similar to staking and farming but different in many ways, Lending is you giving up your cryptos to someone or some group and getting paid a percentage for doing that plus what you've already lent out to them. Now there are many risks for doing and the risk varies from platform, but the main concern you need to worry about on some platforms is the fact that the lender might not pay back the loan. Plus the fact that you can't at any point get your money back until it's paid back to you. I typically stand clear from this as it carries too many risks for me to participate in it. However, if you can't for some reason farm or provide liquidly or stake then this can be your last hope at making passive income off of your cryptos. Rates vary from crypto and the platform you choose from. The best platform In my opinion to start lending is kucoin as they will cover the loan if the loaner doesn't pay the loan off.
Airdrop
Now while this isn't a way to make passive income directly off of your cryptos you can still make some money off of some of your cryptos and even get free cryptos without having to previously hold any. All you have to do is find a legitimate project that has backers and figure out how to claim an airdrop. Now there are many platforms to earn airdrops from so I can't really specifically name any platforms. But do know that some cryptos are scams and are usually very prevalent in airdrops. So do beware of that but if you can find a good project then these airdrops can be a good source of quick money. Also do note that some airdrops might require you to previously or currently hold a certain cryptocurrency.
My Final Words
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