Crypto Passive Income Opportunities
Beyond basic crypto investing, there are a multitude of tools to work with in regard to growing your holdings. However, it can become a full-time job trying to keep up with all the active opportunities, trade positions, and new market options to play. Instead, many choose to lean on passive crypto income to generate value growth over time, still generating more than a respectable amount of gain, depending on the tools used. Each passive channel has its own rules of operation, and the gains tend to be correlated with the risk involved as well. In short, there’s something for everyone.
DeFi Farming
Operating very much as an investment in liquidity pools, DeFi farming pays a reward for contributors who provide their coins and tokens to help speed up and solidify a given exchange pair. The method requires the depositor to have an investment amount in two different crypto coins that represent a trading pair. With both coins, the depositor stakes them in the liquidity pool and, as long as the investment stays staked, he receives an increase in value, usually in the form of the pool’s home coin or token. In other cases, it can be the governance coin for the pool. Either way, DeFi farming can be extremely profitable, especially where a depositor takes a risk in a pool that is new and not well-established. A DeFi farm tracker can help with finding the right pools to farm. Additionally, the depositor can take their original funds out at any time, but the rewards, or harvest, immediately stop as well.
Ethereum Staking
Ethereum staking is widely viewed by many as the crypto world’s version of a savings account. There are different choices in staking, but ETH is the largest by TVL due to the popularity of Ethereum. Starting before the Shanghai Fork arrived, ETH staking provides a mild reward of more ETH for staking existing ETH deposits. Generally, the staking reward has been in the single digits, approximately 4-6%, but due to Ethereum’s stability, staking has been very reliable for passive crypto income with low risk. Depositors should remember though, the principal value still goes up and down with the value of Ethereum on the market. So, for example, many who staked in the early months in 2021 saw their value drop as much as 50 percent as the 2021 crypto winter settled in. That said, they also still gained more ETH from staking, offsetting some of the loss.
Exchange Referral Links
Not quite involving crypto investment per se, exchange referral links assume at least some involvement in proactive digital marketing communications (newsletters, email blasts, etc.), website support or social media. The reason being, the user installs and makes use of links to given crypto exchanges to help them find new customers and build online traffic to the given exchange. The link itself incorporates an identification code confirming the traffic came from the user of the link on their website or social media page or email. This tracking then allows the exchange to reward users who generate ongoing and sizeable traffic for the benefit of the given exchange.
Many link users realize notable benefits, whether it’s direct deposits of governance tokens from the given exchange or other popular crypto payments. Users can also earn bonuses that give them greater access to additional features on the given exchange, increasing their profit opportunity in trades or staking in that exchange. Many benefits include trading fee discounts, private trading tools not available to regular users, and one-time rewards for reaching specific traffic levels.
In short, there are multiple tools that provide additional income beyond a simple crypto holding. Their rewards vary based on the risk involved, which makes passive income tools attractive to a wide variety of crypto holders.
