Passive Income In Crypto: Stake HO On HALO Network’s POS Mining

The world is at that point where one income stream is not enough. Fortunately, the crypto space has a lot of opportunities that might be viable income streams. The problem is most folks into crypto appear focused on trading, which requires some special skill set.

In this piece, we intend to dissect the different passive income streams available in the crypto space. Let’s get to it!

Yield Farming

This is one of the best ways to earn passive income in crypto. In yield farming, you stake the relevant asset in liquidity pools, then get rewarded with fresh tokens based on the smart contract.

Lots of DeFi protocols offer ample opportunity to enjoy the passive gains of yield farming. On Pancakeswap, you have lots of pools to choose from, which is something most yield farmers will appreciate.

Typically, you can manually compound your yield, but the presence of yield optimizers makes automation of compounding quite easy.

You can easily harvest your yield and sell them off as soon as you’d like. However, your stake might be much harder to un stake, depending on the yield farming protocol used. Some have unlock fees to discourage yield farmers from exiting.

Since yield farming entails adding liquidity to certain pools, you still have to be wary about impermanent loss. Thus, you should understand the risks before getting involved.

Lending Cryptocurrencies

Another easy way to earn passive income in the crypto space is through lending cryptocurrencies. On lending these digital assets, you are paid interests, depending on the terms of lending. Since the crypto space has gotten quite competitive, lending cryptocurrencies can be done in different ways:

Lending On Decentralized Finance Platforms

You can lend your cryptocurrencies on lending protocols. Here, there’s no middleman, so the terms are more favorable to both parties. Instead, the borrower and lender transact thanks to a smart contract with all the necessary details.

Lending on DeFi protocol might be profitable, but the terms aren’t decided by either party — borrower or lender — so users have to always confirm they’re okay with it.

Lending On Centralized Platforms

Centralized exchanges like Binance have added crypto lending to their services. Now, you can do more than just trade cryptocurrencies; you can lend them out and get the stated interest rate. Of course, the rates aren’t always fair on centralized platforms since the exchange acts as a middleman. However, these platforms are more secure since centralized outfits have full control of all assets.

Lending The P2P Route

Perhaps the most lucrative way to lend is through peer-to-peer. You decide what you lend and your rate. However, you will have to reach borrowers, which is something you won’t have to worry about through other means.

POS Staking

One of the best ways to earn passive income (free of worries) is through staking on proof-of-stake chains. Since these blockchains rely on a consensus that demands staking for securing the chain, you can stake your asset on the network and get rewarded for it.

POS staking entails locking your assets on the network, then you earn a bit of the block rewards based on the value of your asset staked. The catch is you can only stake the network’s native token, so you will have to convert some of your cryptos to the token. Though this can be rewarding, your assets are locked over a long period, and you can’t just un stake anytime you want. It’s certainly for those not interested in short-term gains.

HALO Network, a blockchain that uses an improved POS consensus algorithm (HPOS), is one of the most lucrative POS staking options. You can get involved by pledging HO (HALO Network’s native token) and get rewarded. There are two pledge periods available:

180-day Pledge Period

Your HO tokens are locked for 180 days. During this period, you earn about 80% of your stake in reward. It’s certainly rewarding and you will get back your HO tokens after the pledge period is over. Pledging also comes with being a part of the governance of the HALO Network chain.

360-day Pledge Period

Here, your HO tokens are locked for 360 days. Your earnings will amount to 120% of your staked asset. It’s a viable option for those looking for more rewards without zero concerns about a longer lock-up period. Also, pledging allows you to take part in the decision-making of the HALO Network chain.

POS staking on HALO Network is closer to the average user; anyone can stake their HO tokens on the chain using the POS node option easily. This is unlike elsewhere that has a complicated node setup. And you can maximize your returns through referrals thanks to the STARS community ecosystem.

Liquidity Providing

This is another passive income stream in the crypto space. Providing liquidity for various asset pairs on decentralized exchanges can prove rewarding, especially if you have deep pockets and you’re willing to bear the risk of impermanent loss.

The liquidity provider’s fees are often small, but they add up over time. And it could be huge if your portion of the pool is significant and the trading pair is heavily used.

If you’re looking for a decent decentralized exchange to start your liquidity-providing journey, HOSWAP, HALO Network’s main DEX is a good place to start.

Get Involved In GameFi

One of the latest additions to the crypto space is GameFi. The play-to-earn opportunity this new addition brings makes it a viable passive income stream. Cosmic, an exciting play-to-earn game built on HALO Network can be a good source of extra income regardless of your gaming prowess.

Conclusion

The crypto space is laden with opportunities, you just need to look beyond the obvious options. With each income stream, the cost and risk vary. It’s all on you to weigh each option before making an informed decision.