Making a passive income is the goal of many people who are seeking financial independence, and crypto, while it has its challenges, has been providing some people with this opportunity.
As many as 2.8 million people were estimated to have staked their crypto in the first quarter of 2021 alone, and today, in 2023, it’s likely that millions of people are still earning passive rewards in this way.
But what does passive income mean in crypto, what are the different methods, and can it work for me?
How to Make Passive Income With Crypto
Making passive income with crypto is usually done in a few different ways, such as through staking, yield farming, airdrops, crypto lending, and affiliate programs.
But before we get to all those, a lot of you might be thinking, “is staking crypto safe?”
Investment strategies, even good ones, involve risk, and this is doubly true in crypto.
Crypto is an extremely volatile asset, and very prone to market upset. So before you go putting all your crypto into some lending pool or yield farming, make sure that you do your research.
Make sure you have a solid grasp of how an investment strategy works, and never invest more than you can afford to lose.
While there are risks to staking crypto, passive income is possible with some research, planning, patience, and managed expectations.
Let’s discuss how.
Staking Nodes: Is Staking Crypto Worth It
Passive income crypto staking has been around in the crypto world for a long time and can be a reliable way of earning some crypto passively. So what is “staking” crypto?
How staking works is by placing some of your cryptos into a “node” of the blockchain.
Blockchains require funds to carry out the business of the blockchain, and it will be your staked funds that will be used to “grease” the mechanics of the system. This is great for the system, and you will be earning a small percentage for your staked funds.
Here is a short list of the best crypto nodes for passive income:
|Average Fees||Average Reward||Stake Ratio|
Something to keep in mind is that not all passive stake reward platform benefits are as obvious as just higher yields. Many platforms can have perks, take, for example, our platform, CryptoWallet.com.
CryptoWallet.com’s staking system allows rewards to be paid out in SPEND Tokens. These native tokens of the CryptoWallet platform allow users access to all kinds of extra benefits.
You have access to the 800+ tokens that are currently being sold on the platform and also have the ability to vote on the new hosting of the many thousands of crypto that are lined up.
Check out the whitelist here.
With crypto lending, you lend your crypto out for an ongoing percentage of the amount lent out.
Crypto lending is the act of placing your crypto into what’s called a “liquidity pool.” This pool is the combination of your crypto and often thousands of other people’s crypto. This pool can then be accessed by investors who are looking to use the pool as liquidity for some financial purpose.
They borrow the crypto, pay a small fee, return the crypto, and you earn a percentage.
This rather ingenious system can be very beneficial and was popularized by the DeFi lending protocol service AAVE.
To lend crypto can be a rather low risk for the people lending the crypto, as smart contracts ensure that the crypto will always be returned. However, issues around volatility can cause problems for lending crypto.
Play to Earn Crypto Games
Play-to-earn crypto games, or P2E gaming, are a newer addition to this list. While the rewards aren’t as high as some of the other passive income crypto methods, P2E gaming is still a way that crypto users can earn passive rewards in a fun way.
Some of the best play-to-earn crypto games are Axie Infinity, Decentraland, and RollerCoin, which are games that reward by playing the game, often paid out in native crypto tokens or NFT collectibles that can be later sold on the market.
Results and payment rates can vary between free play to earn crypto games, and while it’s unlikely you’ll be buying a lambo, it’s still a fun way to earn crypto playing games.
Crypto Affiliate Programs
There are many ways to earn crypto as an affiliate, whether you’re a blogger educating your audience on new opportunities in crypto or you’re simply telling your friends about a new product or service.
CryptoWallet.com, for example, will allow users to earn a portion of the fees charged to the accounts of any friends they sign up with. If you sign up three friends, you’ll earn crypto from their accounts!
Of course, people with an online audience stand to earn quite a bit of crypto indeed from this method, and those who join CryptoWallet early on in particular. To join the whitelist and become one of the first people to receive a crypto card from CryptoWallet.com, click here.
Yield farming has a lot in common with staking and crypto lending but works a little differently in the details. So what is yield farming?
Yield farming is the act of placing your crypto in a decentralized application that can then access these funds for lending, borrowing, and other actions throughout its services. The platforms get to conduct business, and you get to collect a small percentage.
One of the key components of yield framing is that your crypto is placed for a strict amount of time, this, of course, can lead to issues if your crypto loses value.
While yield farming isn’t as profitable as it was back in 2020, it’s estimated that somewhere in the region of $6 billion is stored in the service.
Earning SPEND Tokens With CryptoWallet.com
As you can see throughout this article, passive crypto income is indeed possible, but it takes a little work. There is no crypto without risk, but in terms of passive income, there are real ways that people can make real returns.
You just have to know where to look!
And you’ve already made a good start!
Here at CryptoWallet.com, we offer a fantastic service that brings together a handy CW Card that allows you to spend any of our 800+ cryptos virtually anywhere, but you can also earn via staked tokens and even get yourself some referral bonuses by signing up a friend.
If all this and more sounds like what you are looking for, sign up at CryptoWallet.com here.