Crypto passive income programs facilitate earning in ways that were not possible before. This is because the blockchain technology at the foundation of cryptocurrency networks allows the entire world to become connected.
However, these programs each come with their own set of risks. Additionally, beware of scams in the cryptocurrency world, as they are plentiful. If something sounds too good to be true (i.e., “Deposit your Bitcoin and double your money in one month”), then it probably is.
This article covers the top crypto passive income programs, showing you the risk level and potential gains/yields in a year.
Savings, Lending, and Robo-Investment Applications
Crypto savings is like the traditional savings account but in the Blockchain environment. Adding that to lending through any of the various crypto lending platforms is an easy way to put your cryptocurrencies to work and earn passive income online without doing much work.
On the platforms, you can lend your coins for a time and earn interest. In most cases, the borrower would place some kind of collateral in the system so that if they default, the lender still has access to a large percentage of the collateral (90%+).
Also, the loan interest rate runs from 9% to 22%, which is good news as you retain the full value of your crypto and more.
Of course, it’s not without some risks. None of the platforms that handle these are federally insured institutions though they might have a bit of insurance in place but still not enough to really protect you. The borrower could disappear, and there’s nothing you can do but accept the collateral if there’s any. However, the collateral is usually in coins that are not up to the value of the borrowed amount.
In that scenario, you still have the cryptocurrency collateral, along with the hope that it will be worth more in the future.
For savings without lending, those has a lower risk level. However, with lower risk comes lower rewards, so this comes with lower interest.
Savings, Lending, and Robo-Investment Applications
Centralized Savings & Lending accounts
- Celsius
- Crypto.com
Robo-Investment Accounts
- Rari Capital
- Set Protocol
Decentralized Lending apps
- Compound Finance
- mStable
Yield Farming
Yield farming is a very profitable but relatively high-risk form of earning passive income by collateralizing, leveraging, and lending your money. Yield farming is so profitable because you can put your capital to work earning two or more different passive income streams simultaneously.
In some cases, you can even make money by taking out a loan (in other words, negative-interest loans). The basics are as follows: there are several applications that reward you in different ways for interacting with a platform. This can mean:
- Providing your crypto to a “liquidity pool,” in which you can earn both interests in that currency, just as if you were making a regular loan, as well as “platform tokens” (the token or cryptocurrency of that platform) as rewards.
- Collateralizing your cryptocurrency to take out a loan in a different currency. In this way, you can often earn three passive income streams at the same time:
- Earning interest for collateralizing your cryptocurrency
- Earning rewards in platform tokens (like COMP, LEND, etc.) for collateralizing your cryptocurrency
- Earning rewards in platform tokens for taking out a loan
There are some risks associated with yield farming, including unstable prices that can lead to the liquidation of your funds, hackers exploiting software bugs, and more. The most stable way of yield farming is to use stable coins with little to no fluctuation in value. So please educate yourself before starting to play!
Here are some apps to go through:
- Compound Finance
- Aave
- InstaDapp
I explained yield farming (otherwise called liquid mining) in detail in this article.
Staking
Staking is an easy and relatively low-risk way of earning passive income. It works very similarly to a lending or savings account.
You “stake” or “lock” a cryptocurrency to receive daily or hourly rewards, generally in the same currency. These rewards usually come from inflationary currency models, whereas a set number of cryptocurrency is automagically minted each year and distributed proportionally to all holders.
I explained how to stake your coins in this article.
Best Apps For To Earn Staking Rewards
- Cosmostation (Stake Atom & Kava)
- Binance (has a program for staking many currencies)
- NEON Wallet (Stake NEO)
Mining
Cryptocurrency mining is the oldest form of cryptocurrency passive income, dating back to the advent of Bitcoin in 2009. Generally, it takes up-front investment into expensive hardware, and income oscillates depending on the price of the cryptocurrency being mined and the cost of electricity in your area.
Today, there are “cloud mining” platforms where you can invest small amounts of money into an existing mining operation based in a country with favorable conditions for mining (low energy, low taxes, etc.). These platforms work in a similar way to real estate crowdfunding platforms.
Best Apps For Cloud Mining
- Genesis Mining
- NiceHash
- Hashshiny
Affiliate Links
If you have the right social network, you can easily monetize it through affiliate links without the need for your own website or mailing list. It is very easy to send a newsletter blast to all or some of your email contacts, or make a few social media posts and tag all your friends.
There is also software that enables you to automatically send out hundreds or even thousands of personal messages to your Facebook friends in a matter of minutes.
You can use a website as well. I have covered this more extensively in our ultimate guide to crypto affiliate marketing article.
What Crypto Passive Income Program Are You Starting With?
These are the top crypto passive income programs that are available now. Does any catch your attention? If not, check out these passive income low hanging fruits. We also have other passive income articles such as that for credit card bonuses.
