The parallel market is often a good time to mine your own cryptocurrencies and generate passive income. In a recent Cointelegraph video, we analyzed five strategies for generating income with cryptocurrencies and evaluated the pros and cons of each.
Staking
Staking allows cryptocurrency holders to earn income by supporting the Proof of Stake protocol. There are different ways to sign. For example, solo staking allows you to maintain full control of your cryptocurrency but requires significant technical expertise. Conversely, staking as a service allows you to outsource the process to a third party, which is convenient but exposes you to the risks of centralizing your cryptocurrencies.
Crypto Savings Account
Crypto savings accounts pay interest on your crypto deposits, often at higher rates than traditional bank accounts. This method does not require any technical knowledge but carries the risk of outsourcing the custody of your cryptocurrencies. It is important to understand how the platform earns interest before trusting your money.
Yield farming
Yield farming involves lending your cryptocurrencies to a liquidity pool on a decentralized exchange as a liquidity provider. This can provide higher returns than staking, but carries significant risks, including vulnerabilities in smart contracts.
To discover two more ways to earn passive income with cryptocurrencies, watch the full video on our YouTube channel and don’t forget to subscribe!
