New ways to earn passive income
The emergence of cryptocurrencies gave us not only p2p exchange, anonymous transactions, minimum commissions, transparency and full control over our funds, but also the possibility of passive earnings 💲
We will not talk about mining, airdrop and bounty, because these methods have been known for many years and there is enough material on the Internet.
We will tell you about new popular methods that became available not so long ago 👇🏻
The whole process consists of the following: you lock your cryptocurrency and get income for it.
There are 2 ways to stake your cryptocurrency:
✔️ launching your own node. You need technical knowledge + initial investments, as a rule, start from $10k
✔️ delegation of coins to validators on blockchains with PoS, dPoS consensus. Top up your wallet and delegate coins to those who launched their node. It is important to consider the validator fees
Staking is possible on both decentralized and centralized platforms. Аverage revenue rate for staking is from 6% to 36% per year.
This method is mainly used by centralized exchanges that introduce new tools to keep users’ funds on their balances. Basically, exchanges offer us 3 options for deposits:
➖ standard deposit of funds
➖ deposits with a fixed interest rate
➖ deposits with flexible interest rates
The principle is like in a bank — the user deposits funds and receives income for this. Average return on deposits per year (APY) — 6%.
The essence of the lending: you transfer the cryptocurrency to the lending platform or exchange, and you receive a percentage for this. The lender can lease their cryptocurrency to another person, and the lending platform acts as the guarantor.
Maker is dominating among the decentralized landing platforms, the amount of locked funds exceeded $6.18 billion already.
Lending revenue rarely exceeds 12–15% per year.
We owe this method to the DeFi ecosystem. Farming is similar to a lending, but with the difference that you need to have not one cryptocurrency on your balance, but a pair, for example, ETH and USDT.
The revenue varies depending on the total volume of the liquidity pool 🌀
Farming gained so much popularity due to higher interest rates. Some platforms demonstrate a revenue of 300% per year and higher, but the level of risk is also high due to the dependance of revenue to the price of the asset in the pair. Sharp price fluctuations can go into negative territory despite high profitability rates.
Due to the implementation of the marketing model on smart contracts in Tron and Ethereum networks, you can earn from building your own partner structure.
The biggest advantage of this method is compound interest. For example, you earned 100,000 TRX in our marketing, and you also earned on the growth of TRX itself, which grew by 280% during the year 📈
In addition, you can combine options: activity in FORSAGE, farming, etc.
For example, you earned 100,000 TRX in our marketing + growth of TRX itself, which grew by 280% this year. Then you can redirect part of the funds to lending, staking, or launch your own node and receive additional income on commissions.
💡 Don’t make the most common mistake of beginners — don’t throw all eggs in one basket, diversify your risks instead. Always do your own research (DYOR) and take a sober assessment of the risks involved.
Never fall for lucrative percentage promises, but consider the possible negative outcomes, since higher returns can come with a high price of losing all your funds.