Cryptocurrencies are the digital forms of currencies that we can trade for Fiat currencies to earn money by investing in them. However, investing money is an active income when we are talking about earning money from crypto in a passive way. It includes no investment but some skills to earn money from it.
We can earn passive income from crypto in three ways which are as under:
1. By Staking.
2. By Adding liquidity.
3. By joining exchange referral programs.
By Staking: Staking is the best option to earn passive income from cryptocurrencies. In staking, there is a mechanism for keeping your cryptos on exchange for a certain period. You can earn 15% to 70% rewards on staking but it depends on the coin which you stake and exchange which you use as a medium to stake your coins.
By adding liquidity: We can earn passive income in rewards by adding liquidity pools to the pairs of coins which are trading on the decentralized exchange. This option is valid for decentralized exchange and it essentially involves your contribution of tokens to a trading pool. Any person who wants to participate in adding liquidity must need an external crypto wallet and it is very important to pay the gas fees for it.
When a person puts a pair of tokens into a pool, it will be generating liquidity tokens that can be used for farming to earn more rewards on it.
By joining exchange referral programs: We can earn passive income through crypto by joining cryptocurrency exchange referral programs. They reward us every single time when someone clicks through our referral link and joins the platform. Many exchanges run referral programs for people so that they can make money through referral opportunities. But it's not that simple. It requires hard work and patience to earn passive income through referral because it requires the skill to make people join through your referral link.
These are the three ways by which a person can earn passive income through cryptocurrencies
#Crypto #referral #Staking #liquidity
