The cryptocurrency market has evolved over the past decade. As the adoption of cryptocurrencies continues, it has become easier for people to earn passive income with crypto.
Despite the ease, many people still don’t know the best ways to earn passive income with their cryptocurrencies. This post addresses the five ways to earn passive income with crypto in 2023.
Earn Passive Income With These Methods
Yield farming is also known as liquidity staking. It involves lending your cryptocurrencies to others and earning interest for doing so. Yield farming is popular on decentralized cryptocurrency exchanges like Pancakeswap, Uniswap, and Sushiswap.
The reward you earn from yield farming comes in the form of a digital token. If the price of the token increases, you stand to make even more profit.However, to be a yield farmer, you will need to lock up your crypto for a while to earn interest. The interest you earn via yield farming is usually expressed as APY, which stands for the rate of return you earn during a year.
Staking is another excellent way to earn passive income in the cryptocurrency space. Ethereum staking is now available to investors thanks to the Ethereum network migrating to a proof of stake protocol a few months ago.
Staking Ether coins involve having at least 32 ETH staked to become a validator. This is tough to do unless you are a seasoned crypto enthusiast. There are other ways to stake your ETH coins without allocating such a huge amount.
You can stake smaller ETH coins as validators allow you to join their networks and earn rewards in the process. You can stake your ETH coins on centralised cryptocurrency exchanges and with staking pools.
You have the potential to make thousands of dollars from airdrops. Airdrops in the crypto world involve the sharing of cryptocurrency tokens or coins for free to various wallet addresses.
To participate in airdrops, you will be required to share posts, register on the platforms, and partake in a few other things. Once the project launches, you can trade the tokens you received for other coins or sell them for cash on crypto exchanges they are listed on.
Airdrops are done to create a buzz around a cryptocurrency, allowing the project to gain new followers and boost the user base. You can take advantage of new projects to earn crypto via their airdrops.
Playing games (P2E)
GameFi has become an important part of the cryptocurrency space. Gaming finance operates a “play to earn” model where players earn when they play a game and move through various levels. The earnings can be given to the players as NFTs, in-game items or coins/tokens.
As a player, you can convert the tokens earned from the game to popular cryptocurrencies like Bitcoin or Ether or swap them to fiat currencies. You can also use NFTs to build and grow your characters. You can earn from some of the leading P2E games like Axie Infinity, Decentraland, and CryptoKitties.
Cloud mining is another great way to earn passive income in crypto. The process involves using your computer device to solve complex mathematical equations that validate blocks of transactions.
As an individual, you can take advantage of cloud mining to mine cryptocurrency services. Cloud mining service providers like Genesis Mining and HashNest charge users daily service fee on their cloud drilling rights. Cloud mining allows crypto investors to earn passive income.
There are various ways to earn passive income as a cryptocurrency investor. However, the five explained in this article are some of the best ways to earn passive income in the industry.