if you're watching this you probably have some crypto sitting idle in your wallet or maybe you're just curious about how you can make money besides constantly trading well you're in luck because today we're diving into the world of passive income strategies as it pertains to crypto personally I've tried out countless strategies over the years and I'm here to share with you everything that I know so whether you're a beginner or seasoned investor this video will give you a comprehensive I overview of all the strategies give it a watch and you'll come away with a better
understanding of what's possible and what's the best fit for you now let's start with one of the easiest ways to put your crypto to work lending and earning interest this is pretty much like putting your money in a savings account at a bank but instead of Barely getting any interest you'd be pulling in 5 to 10% or more depending on the platform and the crypto you choose now it's important to note the difference between Crypt savings accounts and lending platforms as it's easy to get those confused Crypt savings accounts like the ones on crypto.com or
nexo basically let you park your crypto and earn interest just for holding it there while lending platforms like a and compound let you lend your crypto to an intermediate pool from which borrowers can then pull from it's kind of like being your own mini crypto Bank in a sense but here's the thing higher rewards always comes with higher risks you may you may remember the recent bankruptcies of lending platforms such as blockfi and Celsius which shows you that even the biggest players can go under so when you're choosing a lending platform you got to keep
a few things in mind such as is the platform secure and well established and have they had any hacks or security issues in the past also keep in mind that crypto prices are super volatile so even if you're getting a high interest rate a big drop in the value of your underlying crypto could pretty much negate your interest earned so my point is always remember to do your own homework and never put in more than you can afford to lose next up we got an ultra popular way of making passive income staking when you stake
your crypto you're basically locking up your tokens to help validate transactions and keep the blockchain secure in return you get rewarded with more tokens so if you have long-term conviction and a problem then staking their token could be a no-brainer for you now there are a couple of ways to stake your crypto you could either solo stake or you can stake through a third-party platform such as an exchange which handles the process for you solo staking often requires a significant amount of the coin plus some technical expertise to set it all up whereas staking through
a third- party platform is much easier as they handle most of the technical aspects for you for example many popular exchanges such as binance offer third party staking services and then many popular wallets also offer managed staking so that makes it super easy to stake if you want to now some of the most popular coins for staking are ethereum cardano and polka dot but there are plenty of others to choose from and the rewards can be quite sweet here I'm talking 5 to 20% annually depending on the coin and the specific staking rules but just
like with lending staking comes with its own set of risks if the price of the crypto you're staking takes a nose dive your rewards might not be enough to to cover for your losses also as more people start to stake a particular coin the rewards usually go down so if you're not an early adopter you might not see the same kind of returns now some staking requires you to lock up your tokens for a certain amount of time so you won't be able to access them if you suddenly want to sell so just make sure
that you're okay with that before you commit to it and as always remember to do your own research understand the risks and never stake more than you can afford to lose now let's dive into a super underrated way of making passive income AKA Revenue sharing or dividend tokens these are basically tokens that give you a piece of the platform's profits or Revenue kind of like how some companies pay you dividends if you hold their stocks the idea is simple the more tokens you hold the bigger share of the piie you get and a great example
of this is C coin shares or KCs just by holding KCs in your C coin wallet you get a daily cut of the exchange's trading fees so the more KCs you hold and the more trading that happens on their platform the more you will earn the cool things about these dividend paying tokens is that you can earn passive income just by holding them but of course there are some risks to keep in mind like the payout you get really depends on the success and profitability of the platform so if the platform struggles or loses users
your earnings could seriously take a hit also don't forget that there's always the possibility of regulatory changes that could affect the value or utility of these tokens I've seen this happen way too many times like in August of 2023 binance's BNB dropped to a one-year low because of legal and Regulatory scrutiny over their activity in Russia so my point is please make sure to look into the platform's track record read up on the revenue sharing specifics and only invest what you can afford to lose now let's move on to two of my favorite ways to
earn free crypto airdrops and forks aird drops are basically when a project gives out free tokens to their Community just think of it as a promotional marketing tactic for protocols but instead of discounts they give you free tokens the best part sometimes all you have to do is hold a certain coin in your wallet and boom free tokens just for being in the right place at the right time but not all airdrops are that simple some require a bit more effort such as providing liquidity or actually using their protocol but either way I think it's
pretty cool that there are people out there who can make a living by farming airdrops they're called airdrop hunters and some of them are pulling in six figures per year just by collecting free tokens so if you keep an eye out for legitimate airdrops and participate when you can it could be a nice way to grow your portfolio without having to spend extra money now let's move on to something quite similar to airdrops but still different and that' be Forks a fork is when a blockchain splits into two separate chains usually because of some sort
of disagreement within their Community when this happens anyone who was hold the original coin usually gets an equal amount of the new forked coin for free but here's the important thing to remember in order to actually get those free coins both chains need to be supported by miners or validators after the split if one chain dies out then those coins could end up being worthless so while Forks can be a nice surprise bonus they're far from a sure thing and you definitely shouldn't be buying a coin just because you think it might fork in the
future personally I think that airdrops and forks can be a great way to earn some extra crypto but they shouldn't be your primary investment strategy and always do your own research to better avoid scams as there are a lot of them that try to rope you in through a free airdrop these days now my next passive income strategy has everything to do with nfts if you don't know what those are they're essentially digital Collectibles that can be bought and sold using crypto they can represent anything from art to music to Virtual real estate to gaming
items but what's important to note is that if you create your own nft you can set it up so that every time they're sold on a secondary Market you automatically get a cut of the sale this is what's known as a royalty and the cool thing is that nft royalties are programmed straight into the blockchain so you don't have to chase down buyers or worry about getting paid it's all automated and if your nft becomes popular those royalties can really add up now of course creating an nft that people actually want is easier said than
done it takes a lot of talent marketing and sometimes just pure luck but if you catch the right wave and find product Market fit then nft royalties can be a great way to turn your creativity into passive income now this next strategy is not talked about enough as it's made me thousands of dollars over the years and that's affiliate and referral programs most exchanges and lending platforms will pay you a bonus for bringing in new users the way it works is that you'll earn a percentage of your referrals trading fees or the interest that they
earn so the more your referrals trade deposit or lend the more you will earn and the best part some platforms offer recurring commissions which means that you will keep on earning passive income for months or even years from this now I'm not going to lie you can't just sit back and expect for referrals to pour in but if you've got a big Network or a lot of followers potentially it can be quite the lucrative strategy personally I've had some success with referring my community to products with such programs but I always make sure to only
recommend things that I use myself and that I truly believe in so if you're willing to put in a little bit of effort here affiliate programs and referrals could be a great way to generate passive income on the side okay now I'm going to go into some of the more advanced tactics that crypto natives use to generate passive income starting with providing liquidity and yield farming providing liquidity is essentially when you add your crypto to a liquidity pool on a DEX such as uni swap or pancake swap essentially you're becoming the crypto version of a
market maker you're providing liquidity that allows other people to trade in return you get a cut of the trading fees generated by the pool so it's kind of like being a silent partner in a crypto trading business when you provide liquidity you receive LP tokens which represents your share of the liquidity pool those tokens Can then be used to redeem your cut of the trading fees and get back to the original crypto that you deposited but why stop at just earning trading fees as this is where yield farming comes into play yield farming takes things
a step further by allowing you to earn additional rewards on top of your trading fees so once you have your LP tokens you can stake them and yield Farms to earn even more tokens this is done to incentivize liquidity providers to keep their funds in the pool otherwise they may just pull their liquidity at a whim which would not be good for the project now hear me out when I say that the Returns on these strategies can be quite wild I'm talking 20 to 100% annually in some cases now there are a bunch of battle
tested platforms for yield farming such as curve finance and year Finance but before you throw all your crypto into the nearest liquidity pool there are some risks you need to be aware of for example impermanent loss is when the ratio of two tokens in the liquidity pool changes compared to when you first deposited them like let's say you provide equal values of token a and token B into a liquidity pool if the price of token a goes up significantly compared to the price of token B then you might end up with less token a than
if you had just held on to your original investment this happens because the pool has to maintain the same value ratio between the two tokens so it automatically sells some of your token a for token B to keep things balanced so even if the combined value of your tokens in the pool goes up you can still end up with a l less than favorable token ratio than when you started also there's always the risk of smart contract bugs or hacks that drain the liquidity pool but if you're willing to take on a little more risk
and you've done your homework then these strategies can be a great way to supercharge your portfolio just remember to diversify and always always have an exit strategy all right so this next strategy is a favorite of the crypto ogs and that's mining mining is how new cryptocurrencies are created and how transactions are verified on proof of work blockchains such as Bitcoin Litecoin and Monero basically miners use their computer power to solve complex math problems and if they solve the problem first they get to add the next block to the blockchain and they're rewarded with some
newly minted coins as a result sounds simple right well not so fast because profitable mining these days requires specialized equipment called as6 These are basically superpowered computers designed specifically for Mining and let me tell you these things are not cheap I'm talking about thousands of dollars just to get started plus they consume a lot of electricity so you'll need to find a place with cheap power in order to have any hope of being profitable also on top of The Upfront costs you've got ongoing maintenance to worry about and the mining difficulty across the entire network
continues to grow so your shiny new Asic might become obsolete in a matter of months that's why a lot of miners join pools instead where a group of miners pull together their hash rate in order to increase their chances of solving a block and earning that block reward the reward is then split amongst the pool members based on how much computing power they contributed but even with a pool there's no guarantee of profitability so while mining can be fun and a potentially profitable way of earning passive income it requires a significant upfront investment and healthy
dose of risk tolerance that's why if you're serious about getting into mining I recommend starting small maybe with a used ASC or a GPU rig and see how that goes and as always please have a backup plan for if the market Takes a Tumble anyhow I hope this video was helpful for you but as you can see this was just an overview and you have a lot more research you have to do before you can get started with any one of these for example if you decide to pursue the airdrop route then you got to
watch this video where I explain why everyone is saying that aird drops are dead and what you can do to optimize your Roi
