A sideways trading market is often an opportune moment to put your crypto to work and generate passive income. In a recent Cointelegraph video, we analyzed five revenue-generating strategies using crypto and assessed the advantages and drawbacks of each.
Staking
Staking allows crypto holders to earn income by supporting a proof-of-stake protocol. There are different approaches to staking. For example, solo staking allows you to maintain full control over your cryptocurrency but demands high technical expertise. Conversely, staking-as-a-service lets you outsource the process to a third party, offering convenience but introducing a centralization risk 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 requires no technical knowledge but carries the risk of outsourcing the custody of your crypto. It’s crucial to 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 in staking but comes with significant risks, including smart contract vulnerabilities.
To discover two additional methods for earning passive income with crypto, watch the full video on our YouTube channel and don’t forget to subscribe!