Looking to make the most of a market that’s trading sideways? There are plenty of opportunities to use your crypto to generate passive income. In a recent Cointelegraph video, we explored five different strategies for making money with crypto and carefully considered the pros and cons of each.
Staking
Staking is a way for crypto holders to earn income by supporting a proof-of-stake protocol. There are different ways to go about staking. Solo staking allows you to have complete control over your cryptocurrency, but it requires a high level of technical expertise. On the other hand, staking-as-a-service lets you outsource the process to a third party, making it more convenient but also introducing a risk of centralization for your crypto.
Crypto savings account
Crypto savings accounts pay interest on your crypto deposits, often at higher rates than traditional bank accounts. This method doesn’t require any technical knowledge, but it does involve the risk of outsourcing the custody of your crypto. It’s important to fully understand how the platform generates interest before entrusting it with your funds.
Yield farming
Yield farming involves lending your crypto to a liquidity pool on a decentralized exchange as a liquidity provider. This can offer higher yields than staking, but it also comes with significant risks, including vulnerabilities in smart contracts.
To learn about two more methods for earning passive income with crypto, check out the full video on our YouTube channel and be sure to subscribe!