Tired of constantly keeping track of your portfolio, capitalizing on opportunities, and managing your positions? Here are seven ways to generate passive income with crypto!
If you are among those that just like to earn passive income without all the typical headache that comes with staying on top of the market 24/7? Fortunately, there are now dozens of ways to do just that, by leveraging your cryptocurrencies to generate returns in the background, freeing up your time for more important matters.
Here, we take a look at seven ways you can put your cryptocurrencies to work, helping you generate a potentially attractive passive income with little to no input or management required.
1. Automate Your Savings
Much like regular currencies can earn interest while being held in a savings account, cryptocurrencies can also be deposited to various platforms to earn a yield.
Some of these are centralized cryptocurrency savings accounts, like those offered by Nexo, BlockFi, and Crypto.com — these generally use your funds to provide overcollateralized loans to institutional borrowers. Likewise, many exchanges, including both Binance and Huobi allow users to earn a yield on their cryptocurrency deposits.
Others are decentralized savings platforms, like Orion Money and Anchor, which allow you to earn interest on your stablecoin deposits. As well as Yearn Finance and Autofarm, which automatically move your funds between a range of DeFi products to maximize the yield you earn.
How much can you earn? Depending on the asset you stake and the platform you choose, it’s usually possible to earn ~5-20% APY.
What to watch out for? Be wary of platforms offering suspiciously high yields, these could turn out to be Ponzi schemes.
2. Become a Liquidity Provider
Decentralized exchanges revolutionized the way that traders access and capitalize on opportunities in the market by providing a permissionless source of liquidity for a wide variety of cryptocurrencies. But a specific type of DEX, known as an automated market maker, also unlocked an entirely new way for cryptocurrency holders to generate a yield on their assets — by becoming liquidity providers.
These platforms offer decentralized liquidity pools that allow users to trade while simultaneously facilitating efficient price discovery by simply using the weighting of the two or more assets held in a pool to determine each of their values, such that a pool containing 100 ETH and 400,000 USDC would price each ETH at $4,000 and each USDC at 0.00025 ETH.
Liquidity is generally contributed by the community, who always maintain their proportionate share of the pool regardless of how much liquidity is added. This liquidity is then used to serve traders executing swaps using this pool.
But here’s where it gets interesting. When a trader sources liquidity from the pool, they pay a trading fee — usually around 0.2-0.3% of the trade size. This is split between all liquidity providers, including you.
A huge number of AMMs now exist and most major smart contract platforms now have one or more suitable options. Some of the most popular currently include Uniswap (for Ethereum), PancakeSwap (for Binance Smart Chain), Pangolin (for Avalanche), WagyuSwap (for Velas), and SushiSwap (multi-chain).
How much can you earn? The amount you will earn can vary considerably between pools and platforms. Generally, the higher your fraction of the overall liquidity and the more trading volume your pools see, the more you will earn. Yields can range from almost nothing to potentially well over 100% APY.
What to watch out for? If you’re providing liquidity for volatile assets, then you will absolutely need to understand impermanent losses.
3. Participate in a Yield Farm
If you’re already providing liquidity, then yield farms provide a way to earn an additional yield on your assets.
As their name suggests, yield farms are platforms that allow you to “farm” for yields in one or more ways. Most commonly, you will need to stake your pre-existing liquidity provider (LP) tokens to a specific farm to earn a fraction of its reward pool.
By staking your tokens to the yield pool, you will receive a proportionate fraction of the rewards it pays out each day (week/month, etc.) such that if you contribute 1% of the pool, you will generally receive 1% of the rewards it offers.
Many AMMs, including PancakeSwap, TraderJoe, and SushiSwap, have built-in yield farms, while some are standalone products — such as Venus.
How much can you earn? Yield farms generally pay in volatile cryptocurrencies. If this cryptocurrency collapses in value then the average APY can be relatively low, whereas if it appreciates in value then it can be relatively high. In general, expect around 5-20% APY if you liquidate your yields frequently.
What to watch out for? Many yield farms initially offer incredibly high yields, but this quickly drops when the total value staked increases and if the reward token crashes in value. Be sure to check your estimated yields regularly to stay on top of this.
4. Stake Your Cryptocurrencies
Proof-of-Stake (POS) not only introduced a more efficient way to maintain consensus in a decentralized system but also brings with it a new way for coin holders to earn a yield — through staking.
Depending on the cryptocurrency and whether it uses simple POS, Nominated-Proof-of-Stake (NPoS), Delegated Proof-of-Stake (DPoS), or some other variant, staking could require setting up a validator node and locking up a fixed minimum number of coins to participate in securing or powering the network or delegating your coins to a selected nominator or validator.
In either case, stakers earn a yield that is usually derived from the inflation of the staked cryptocurrency and/or the transaction fees generated by the network.
A huge number of cryptocurrencies now offer staking rewards, including the likes of Ethereum (via the Beacon Chain), Solana, Cardano, Avalanche, Terra, and Polkadot. Some of these enforce a fixed minimum stake and a lock-up period, which can pose as barriers to some users.
Nonetheless, once staked, the yields generated are generally completely passive — requiring little to no oversight or intervention. Nonetheless, you may want to liquidate your yield regularly to buffer against price volatility or hold your coins long-term if you believe they will appreciate in value.
How much can you earn? The yield you will get usually depends on a few things, including the proportion of the supply that is staked and any commissions you might lose (for DPoS and NPoS). In general, you can expect around 5-15% APY.
What to watch out for? Staking yields are paid out in the same coin that you stake, e.g. staked DOT yields more DOT. If the value of the coin you stake falls, there is a chance that you could end up net negative in fiat terms if the staking rewards do not cover the losses.
5. Join a Guild
If you’ve jumped on the recent hype surrounding play-to-earn games, then you may have found that playing these games and making use of your in-game assets and NFTs can be a time-consuming process.
After all, you actually need to play these games in order to benefit from the earning part of the equation. But thanks to the advent of guilds, this doesn’t necessarily need to be the case.
These are platforms that allow play-to-earn investors and players to work together for their mutual benefit. Generally, investors supply the funds and assets, while players securely leverage these assets to generate a yield. This yield is then split between investors and players, and often between other intermediaries, such as managers — who create documentation and training materials for players (generally known as scholars).
Some of these platforms allow NFT holders to pool their assets together as part of the guild, whereas others allow direct peer-to-peer NFT lending between NFT holders and borrowers in return for an agreed fee. A wide variety of guilds are now operating, including Yield Guild Games (YGG), Good Games Guild (GGG), and Merit Circle. Each of these differs in the way they work and the amount of manual input required, but often makes earning a yield far more efficient than manually playing supported games.
How much can you earn? The amount you can earn varies based on your guild, the specific play-to-earn games it supports, and the skills of the players. However, you can expect to earn around 20-40% of what you could earn playing the game yourself — albeit without actually doing so.
What to watch out for? Not all blockchain gaming guilds are created equal. Be sure to do your due diligence before handing over your funds or assets to any guild.
6. Join a Crypto Fund?
As you’ve probably noticed by now, most passive income streams will require some initial labor and periodic maintenance, whether that be depositing your assets to a liquidity pool, operating a validator node, or participating in a guild.
Crypto funds are an exception since they are truly passive. Much like traditional hedge funds can be used to put your fiat capital to work, crypto funds allow you to generate revenue using your digital assets (and oftentimes fiat currency too).
These can be relatively simple funds, like Grayscale’s single-asset investment products — such as its Bitcoin trust or Decentraland trust. These allow fiat investors to gain exposure to the price action of a single cryptocurrency.
Other funds, like Pantera Capital, offer more complex investment products, such as the Pantera Blockchain Fund — which provides exposure to a wide range of crypto markets, including venture equity, liquid tokens, and more.
That said, these funds generally have a few barriers to entry, which can include a large minimum investment amount (e.g. $100,000 to $1M+) and accredited status. Likewise, they can vary considerably in the fees they charge — ranging from very reasonable to almost ludicrous.
How much can you earn? Each crypto fund will generally provide a detailed overview of their past performance and quote specific metrics like their internal rate of return (IRR) which can be used to estimate your returns.
What to watch out for? Not all funds perform well and others have unusual terms and conditions. We recommend scrutinizing any documentation before handing over any money, paying particular attention to the notice period for redemptions (which can be lengthy).
Radio Caca (RACA), Safemoon (SFM), Saitama Inu (Saitama) the top Performing Crypto of 2022?
Radio Caca (RACA), Safemoon (SFM), Saitama Inu (Saitama) and others listed on this article the top Performing Crypto of 2022?
Many cryptocurrencies are expected to perform well in 2022 based on a number of factors. The upcoming products and the crypto community’s expectations are the key factors that determine cryptocurrency performance.
The cryptocurrencies listed below are expected to perform well, and we are going to look at why they might be among the top performers.
Radio Caca (RACA)
Radio Caca is a cryptocurrency for the Universal Metaverse (USM), a gaming platform that was launched in mid-August 2021. The project is building one of the biggest things in the gaming and metaverse industry. A look at the 2022 roadmap shows a project committed to deliver hence making RACA one of the cryptocurrencies to watch in 2022.
Apart from the incredible utilities the team is launching in 2022, there are many giveaways that come with this project. The team is gifting thousands of dollars’ worth of the $RACA, a strategy that is building its community fast.
USM Metaverse might be the next big thing in the gaming industry, and this is how RACA might perform better in 2022. The Radio Caca 2022 roadmap says it all.
Safemoon was one of the fastest-growing cryptocurrencies of 2021. Despite the plunge in the Q4 of last year, the cryptocurrency still remains one of the highly potent cryptos of 2022. There is a lot on the SFM 2022 roadmap that might make it one of the best performing cryptocurrencies of 2022.
The Safemoon V2 upgrade is still one of the biggest things in 2022. When this protocol upgrade is fully completed, the platform will attract more investors and uses. The upgrade is projected to make SFM DeFi project more efficient, fast, and more secure.
However, Safemoon’s Operation Phoenix is the next big thing in 2022. The project majors in a number of innovations, with wind turbines and nanotechnology being the most popular. The technology is decentralizing wind turbine energy technology by the development of small turbines that users can buy to produce their own energy.
There is more of Operation Phoenix that will reveal soon, including the Safemoon exchange. These are developments that might make SFM the best performing crypto of 2022.
Saitama Inu (SAITAMA)
Saitama Inu is not just another meme coin. It is a real utility cryptocurrency to watch in 2022. The Saitama project launched in mid-June 2021 and has been doing very well in the market. As a community-driven token, the project aims at addressing community challenges. One of the major objectives is educating crypto investors on how to invest properly on its Edutainment platform.
But the Saitama Inu team is planning to do more than this to better the community. It has plans to develop a complete DeFi ecosystem. The project is already ongoing, with the launch of the Saitamask being a major milestone that gives this token a real utility.
SaitaMaker is another utility the team is developing and will be an NFT-based launchpad platform where the Saitama community can create and launch projects based on SAITAMA. So there is so much utility in this project that might make it the best performing crypto in 2022.
Bitgert is another 2021 cryptocurrency worth watching in 2022. It is a DeFi project that launched in late July 2021 but is delivering at a very fast rate. The team is building a global payment system that is decentralizing financial services. In just 5 months of the launch, the team has launched multiple products, including a powerful dApp wallet and the staking process.
The Bitgert 2022 roadmap has been the most exciting. The team is launching two major products: Brise exchange and a zero gas fee blockchain. The cryptocurrency exchange is launching in Q1, with the beta version coming out at the end of February.
The gasless blockchain is in the development stages. These are two major products that might make $BRISE the best performing crypto of 2022. The has also doxxed in January, and this will have a big impact on the coin. Read more on the Bitgert website.
Centcex is the next big thing in the cryptocurrency exchange industry. The team says they are building the next Coinbase by simply addressing limitations in the current crypto exchanges. The developer has promised to build a more secure, fast, and anonymous exchange. These are features making this project very attractive.
The Centcex exchange uses PoS consensus protocol which increases scalability and the network’s security. It is also a no-KYC crypto exchange, which will improve the safety of user data. The market is now looking for an anonymous exchange, and this is what the team is offering.
The other reason why Centcex might be the top-performing crypto of 2022 is the huge utilities the platform offers. A 3% of every transaction goes to find the creation of unlimited that will run on the ecosystem.
The platform also offers 100% APY staking rewards. These are factors that might make CENT the best-performing crypto of 2022. Visit the Centcex website for more information.
With the metaverse industry expected to explode in 2022, Metahero is the right place among the cryptocurrencies that might do very well this year. The project is offering users technology that is easing the process of making avatars and other virtual items.
The Metahero’s 3D scanning and modelling technology generate ultra-realistic 3D avatars and virtual assets not just for use in the gaming industry but also in other industries. The 3D virtual items ate being used in VR, social media, and online fashion. It is this real utility that is making Metahero token popular with crypto investors.
The team is adding utility to the ecosystem like the NFT marketplace, 3D chamber, and Metahero mobile app V2. It will be a project to watch in 2022 and probably one of the best performers.
These are reasons why the crypto community believes that these cryptocurrencies might be some of the best performing cryptos of 2022. Before committing money to a crypto project, thorough research on the project is recommended.
Note: This is Not a finacial advice, do your own research before investing in any cryptocurrency
5 Best Tips to Boost Your Cryptocurrency Investments In 2022
These cryptocurrency tips can help you invest smartly this new year.
Cryptocurrency investment has worldly spiked over the last five years, with 14% of Americans now holding digital assets in their portfolios, up from a reported 1% in 2016. Some of the crypto experts predict that this figure is likely to double by the end of 2021 after 13% of survey participants expressed the desire to purchase crypto over the next few months. Here are a few of the top 5 crypto investment tips to get you started.
One of the easy ways to reduce risk and improve returns is by investing in crypto assets. This is trading is known as asset allocation or diversity. The common strategy is to select different types of cryptocurrencies to ensure you gain when one of the many sectors experiences a surge.
2 Copy Trading
Copy trading is a type of investment trading where you automatically copy the trades of a professional investor. This is a completely hands-free way to trade cryptocurrency without needing to study and track the market yourself. You cannot predict the success of a trader or the future movements of crypto assets so it is crucial to set up a loss limit.
3 DeFi Staking
DeFi staking is a way of locking up your crypto assets in special, autonomous platforms known as ‘decentralized applications’ in order to receive annual interest. DeFi is a sector of the cryptocurrency industry that takes traditional financial services like loans and insurance and puts them on the blockchain. DeFi staking is a great way of generating an annual return on your deposited assets if you only plan on buying cryptocurrencies and holding them. It is worth noting, however, that not all cryptocurrencies can be staked.
4 Hedge Crypto Trades
Hedging is a type of investment strategy aimed at reducing potential risks and losses incurred during adverse price movements in the market. The popular way crypto investors hedge their trades is by going long or short in the futures market.
5 Pick One Cryptocurrency
Initially, approach the market with caution and buy the coin you feel surer about. DStick to your decision and monitor your progress before expanding the portfolio.
Note: This is not a finacial advise, make sure you do your own research before investing in crypto.
Tech Gaint Samsung plans to launch NFT feature for TVs
Samsung said that starting with its 2022 TV lineup, it would provide broad support for NFTs.
This was disclosed in Samsung press releases titled, “Samsung Electronics Unveils Its 2022 MICRO LED, Neo QLED and Lifestyle TVs, With Next-Generation Picture Quality and Range of Cutting-Edge Personalization Options.”
Samsung becomes the first major TV manufacturer to support NFTs to such a significant degree.
Samsung is introducing the world’s first TV screen-based NFT explorer and marketplace aggregator. This would be a groundbreaking platform that lets you browse, purchase, and display your favourite art all in one place.
“NFT Platform: This application features an intuitive, integrated platform for discovering, purchasing and trading digital artwork through MICRO LED, Neo QLED and The Frame,” Samsung said.
The need for a solution to today’s fragmented viewing and purchase landscape has never been higher, according to Samsung.
What you should know
- Non-fungible token (NFT) assets were extremely popular in YTD with about $20 billion in volume recorded in terms of NFT sales among 100 collections.
- While many single NFTs sold for millions of dollars, a number of NFT projects and collections saw hundreds of millions and even billions in all-time volume.
- According to defillama.com metrics, the popular NFT collection Cryptopunks captured $2.98 billion in all-time volume.
- Numerous NFT collections have been very prominent in 2021 and have been the topic of various discussions
- Hence with the growing popularity of NFTs, Samsung saw that the need for a solution to today’s fragmented watching and purchase landscape has never been higher.