Today we will examine with you how you can earn passive income in the cryptocurrency market.
If you own more than one cryptocurrency, you’ve probably noticed that you can both make incredible profits from trading cryptocurrencies and long-term investments, but also spend a lot of time tracking your portfolio, chasing opportunities, and managing assets.
So is it possible to do the opposite? In other words, can I earn income without ever following the market without getting tired? The answer to this question is yes. There are many ways to earn money on your cryptocurrencies without any effort.
Automate your savings
The first is to automate your savings. Just as you earn interest by keeping traditional currencies in a time deposit account, we can invest your money in various platforms to earn returns in cryptocurrencies. With the services offered by platforms such as Next, BlockFi, Cryptocom, you can earn passive income by depositing crypto.
In addition, there are decentralized platforms such as Orion Money and Anchor, which offer the opportunity to earn interest with stablecoin deposits. These transactions are among the simplest and most effortless ways to earn passive income. Because they require almost no knowledge to start making money. With this method, it is usually possible to get an annual return of 5 to 20 percent, depending on the asset you stake and the platform you choose.
Liquidity Provider
As the next option, you can provide liquidity. In particular, a particular type of decentralized exchange known as the automated market maker has created an entirely new way for cryptocurrency holders to become liquidity providers and earn returns on their holdings. These platforms offer decentralized liquidity pools that allow users to trade. The amount of return obtained can be increased by determining the proportions of two or more assets held simultaneously in these pools. For example, a pool of 100 ETH and 400,000 USDC prices ETH at $4,000 and each USDC token at 0,00025 ETH.
Yield Farming
This model, which is a combination of the words yield, which means yield, and farming, which means farming, makes it possible to provide passive income. Usually, in order to earn on the prize pool, it is necessary to stake the existing liquidity provider (LP) tokens on a particular farm.
When tokens are staked into the pool, a certain portion of the transaction fees paid is received as daily, weekly or monthly income. For example, if you contribute 1 percent of the pool, you usually get 1 percent of the prizes offered.
Staking
Now let’s move on to the staking feature, which is our other title. The staking process may vary depending on the cryptocurrency used and Proof of staking, candidate proof of stake, authorized proof of stake, or another consensus algorithm. It may require setting up a validator node, or it may require locking a certain amount of tokens in order to power the network and hand over the cryptocurrencies to the chosen candidate or validator.
In both cases, staking users can earn a return on the increase in the amount of cryptocurrencies locked or the transaction fees accumulated on the network.
Play to Earn
In addition to these, you can join alliances by participating in projects such as win as you play, and you can earn returns as you play, without having to play games all the time. In this system, the total profit is shared among the team.
In addition to all these features, there are two other ways to earn passive income. These are to collect tokens with yield feature and to participate in crypto funds.
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