Are you looking for ways to put your crypto to work and generate passive income during a sideways trading market? In a recent Cointelegraph video, we explored five strategies for generating revenue using crypto and evaluated the advantages and disadvantages of each.
Staking
Staking allows crypto holders to earn income by supporting a proof-of-stake protocol. There are different approaches to staking. For instance, solo staking gives you full control over your cryptocurrency but requires high technical expertise. On the other hand, staking-as-a-service allows you to outsource the process to a third party, offering convenience but introducing a centralization risk for your crypto.
Crypto savings account
Crypto savings accounts pay interest on your crypto deposits, often at higher rates than traditional bank accounts. This method requires no technical knowledge but carries the risk of outsourcing the custody of your crypto. It’s important to understand how the platform generates interest before entrusting it with your funds.
Yield farming
Yield farming involves lending your crypto to a liquidity pool on a decentralized exchange as a liquidity provider. This can offer higher yields than staking but comes with significant risks, including smart contract vulnerabilities.
To learn about two more methods for earning passive income with crypto, check out the full video on our YouTube channel and be sure to subscribe!