Key Points of this Article:
• Introduction
• Ways to generate passive income
• Staking, Yield Farming, and other methods
• Exploring airdrops
Introduction
A lot of people are eager to discover the most effective methods for making money in the crypto market. Unfortunately, many individuals experiment with various strategies and end up losing their investments due to a lack of proper information.
Discover the ultimate methods to make bank in the crypto market. Don't fall victim to trial and error – I've got your back.
Get ready for some rock-solid strategies that will help you generate passive income like a pro. Let's dive in : 🧵👇
1/ Staking
Staking your cryptocurrency is an excellent way to earn daily returns on many coins. Additionally, there are various methods available for staking :
a/ Staking on Binance
You can directly go to the Binance earn section and find the staking option to stake your coins/tokens on binance to get daily rewards. Annual returns depends on the time you're staking and which coin/token.
b/ Staking on Chain
You have the opportunity to stake your coins in chains that support Proof-of-Stake (POS). This not only enhances the security of the network but also allows you to participate in governance by voting on proposals for the tokens. By staking coins like $ADA, $FTM, and others, you can expect greater returns ranging from 8-15% or even more.
2/ Providing Liquidity
Providing liquidity refers to the act of contributing funds to a decentralized trading platform, (DEXs), in order to facilitate trading between different cryptocurrency pairs.
You can also provide Liquidity in Binance by going to Binance Finance tab and Liquid Swap, where you can provide liquidity on many different pairs.
You can expect greater returns by providing liquidity as it gives you rewards by your share of the pool. These tokens entitle you to a portion of the trading fees generated by the DEX. Many pairs even give APR over 50%+..
Risk in providing Liquidity
Impermanent loss : This happens when the prices of the tokens in the pool change relative to each other. If one token's price goes up significantly compared to the other, you might end up with fewer total assets compared to if you had simply held onto your tokens. However, the earned fees can often offset this loss.
3/ DeFi Lending & Borrowing
DeFi lending, short for "decentralized finance lending," is a subset of the broader decentralized finance ecosystem. It involves lending and borrowing of cryptocurrency assets through decentralized platforms, removing the need for traditional intermediaries like banks.
Basically, you can lend your cryptocurrency coins or tokens to a lending protocol, and then borrowers who need those funds can borrow them from the pool of assets you've deposited. In return for lending out your assets, you earn interest on the amount you've lent. This interest is usually paid by the borrowers as a fee for using the borrowed funds.
It's a way for cryptocurrency holders to earn passive income while also providing liquidity to the DeFi ecosystem.
Examples like : Radiant Capital
4/ Airdrops
Believe it or not, this is one of the best ways to earn money in crypto. Airdrop projects can indeed provide you with a substantial amount of money for using/interacting with their protocol.
Projects conduct airdrops to raise money from venture capitalists (VCs), as it provides them with marketing exposure and brings new users into their ecosystem to utilize their platform.
I have even seen people making $200K+ from a single airdrop of DYDX before, right now there's many more which you can participate in.
5/ Referral Programs
Referral programs are nearly ubiquitous in the world of crypto. They allow you to earn a percentage of the fees paid by those you refer, either through trading or other means. For example, Binance offers referral commissions of up to 40%.
Moreover, many protocols have implemented referral programs that offer generous rewards for inviting others.
6/ Rewards & Earn Programs
There are many programs where you can earn a good amount of passive money in crypto which are provided by many CEXs, and some of them are:
Learn & Earn: You can earn free crypto by participating in learning activities on Binance. Simply visit the 'Binance Learn & Earn' tab, check out the ongoing activities, and engage to gain knowledge and receive free rewards.
Binance Launchpad: You have the opportunity to explore launchpads and launchpools. By providing your BNB, TUSD, or FDUSD, you can earn tokens at the ICO price, potentially leading to significant profits.
-------------------------------------------------------------
That concludes this article. I hope you enjoyed reading it.
In the crypto world, there are numerous other ways to generate passive income. I will share these methods with you in due time. However, always remember to do your own research before taking any action.
Please remember to leave a like and follow for more articles like this. Thank you all for your amazing support! ❤️
