5 genuine passive income ideas to earn with Cryptocurrency

 

1. LENDING. 

It is perhaps the most popular way to  earn passive  income through crypto currency assets.  Crypto Lending can be done in both the centralized  and decentralized aspects of the crypto world,  making is available to almost any crypto  investors. There are many different ways to  lend crypto but the most popular are peer to peer  that is P2P and centralized Lending. P2P lending  matches one with a borrower, where the lending  terms are discussed and agreed upon. Centralized  lending is strictly lending to third parties  having fixed interest rates and lockup periods.

2. POS STAKING. 

Proof of stake ,that is, POS staking is a great  way for investors to generate passive income  from crypto. Crypto currencies that run on a POS  consensus mechanism select validators from a pool  of users that have staked a specified sum of its  native digital asset. As a reward for staking the  crypto currency validators earn interest on the  staked funds for contributing to the validity  of the network. This provides an opportunity  for holders to generate passive income. Some  popular POS block chains that one can stake in  are Cardano, Ethereum 2.0, Solana, and Polkadot.

3. INTEREST.

 Crypto currency investors are able to take  advantage of interest bearing crypto accounts to  earn fixed interest on their idle digital assets.  This is very similar to putting money  into an interest earning bank account.  The only difference is that only crypto  deposits are supported through these platforms.  Rather than holding digital assets in a crypto  wallet, one can deposit them into one of these  accounts and earn interest. Depending on the  predefined interest rates, one can earn daily,  weekly, monthly or yearly interest. BlockFi  and Nexo are great platforms to use.

4. DIVIDENDS.

 Some crypto currencies offer dividends for holding  their token. This is very similar to the dividends  earned from holding common stock. Holders are paid  a certain percentage of the revenue from the  company that issued the token. All users need  to do is hold the given token to be eligible to  receive the dividend payment. A great example  of this is KuCoin. Holders receive a daily share  of transaction fees accrued by the KuCoin block  chain asset exchange. The size of the dividend  is determined by how much KuCoin you are holding.

5. YIELD FARMING.

 Yield farming is very similar  to the lending process of crypto currencies, but  it has some key differences. The process allows  crypto currency holders to lock up their holdings  which in turn provides them with interest rewards.  Investors can earn fixed or variable  interest by investing crypto in a DeFi  market using yield farming. These rewards can  be much greater than traditional investments,   but these higher rewards come with more risk  , especially in todays highly volatile market.