How to earn passive income from Cryptocurrency

In this article, we feature a comprehensive guide on how to earn passive income from cryptocurrency by a popular crypto enthusiast on Twitter, Danny Crypt.

The cryptocurrency was considered nothing more than a vague phenomenon when it first came out in 2009. Technicians and futurists could see the future potential of cryptocurrency in general, but it wasn’t drawing much interest as an investment.

As the years have passed and hundreds of more cryptocurrencies have come and gone, confusion and an increase in interest emerged from newbies.

According to the crypto enthusiast, there are several ways one can invest in this vast growing non-governmental control coin.

“There are several ways to make money from the Crypto space and One of the most common ways to earn in Cryptocurrency is simply by hodling. Most people simply buy a certain amount of Cryptocurrency and hold them for a long period of time in hopes that it “moons”.”

“However, that doesn’t necessarily guarantee a reliable source of income.  So instead of simply hodling, you can earn rewards by participating in few alternative sources of income.”

 STAKING

– Staking involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of holding cryptocurrencies to receive rewards.

Look at it like leaving money in your bank and earning interest over a period of time. The longer your money stays, the more you earn from cryptocurrency.”

HOW CAN I STAKE?

“On an exchange that supports staking, you’ll usually see an option for staking in the Menu. Check the Screenshots below.”

YIELD FARMING –

“Yield farming means staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency. Yield farming is like a more profitable version of Staking but for DEFI (Decentralized Finance)”

“(I explained centralized & decentralized exchanges in my previous thread). For example, Binance is Cefi and PancakeSwap is Defi Yield farming users locking up their crypto assets in a smart contract-based liquidity pool. (I’ve also explained the Smart contract).”

“Liquidity is simply how quickly and easily an asset can be bought or sold without causing a significant impact on the price. Let me simply… Now if I want to buy a car worth $1million and I don’t have cash but I have Gold worth $1million then.”

“I don’t have liquidity because the seller might not want Gold, he wants Cash before I’ll get a Seller that wants Gold will take time and also before I convert the gold to cash, the gold may not be worth up to $1million again.”

“So Yield Farming helps an exchange have enough backup “cash” per se to make your transactions easier without necessarily fluctuating the price. In return, the exchange gives you a % of the platform fees people pay when they swap tokens. Farming APR can be as high as 100% to 3000% in some token pairs.”

WHERE CAN I FARM?

HOW CAN I FARM?

AIRDROPS

“An airdrop is a marketing stunt that involves the distribution of a cryptocurrency token or coin to wallet addresses to promote awareness of a new currency and building a community quickly.

It’s basically a giveaway. In some cases, you may be required to hold particular tokens or maintain a minimum balance in order to be eligible for an airdrop. If you participated in $COPE airdrop, you’ll remember you were required to have $SOL to be eligible.”

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