most of us even those with crypto store money in bank accounts just having them in there alone will help you to earn interest but even with all the recent rate hikes some of these numbers might still not tickle your fancy especially for those with a bigger risk appetite so this is why many have ventured to explore other ways to earn passive income now no matter the approach the goal is the same to put your idle funds to work for you one of the ways you can achieve this is through crypto now before we begin we'd like to quickly point out that while you can earn passive income with cryptocurrency in the eight ways that we'll discuss it's not always guaranteed to be a success we all know how volatile cryptocurrencies are right even without a volatile Market factors like inflation and bearish markets can cause you to lose 100 of your investment so before investing in any strategy you should always consider whether the risk involved are worthwhile okay to make the decision easier for you we'll explore eight different ways to earn passive income with crypto okay the first way is through staking so you can think of staking like the stakeholders of a corporation who support the growth and success of the Enterprise in crypto though staking is when you lock up a sum of native crypto Assets in a smart contract to earn yield so how it works is through blockchains like ethereum 2.0 cardano Solana and polka dot that use the proof of stake consensus mechanism in proof of stake users who stake their coins usually for a set period of time can become validators and help secure the network and in exchange get rewarded with newly issued tokens of a particular blockchain now while solo sticking can require a high minimum amount staked there are many staking service providers or pool staking Services which accepts smaller lockup amounts if you're in it for the long haul this is one of the more sustainable and also relatively low risk ways to earn passive income now unless you are Solo staking as a validator it also requires little technical expertise because all you have to do is choose a reputable platform on which to stake your assets okay next up we have yield farming which made waves during the D5 summer of 2020 thanks to the rising popularity of decentralized exchange platforms these platforms rely on liquidity pools which you can invest in by depositing tokens into the liquidity pool on the exchange you'll get to earn a cut of the transaction fees collected for Traders who use these pools now in certain cases you can even deposit the lp tokens received to earn even more tokens while the act of yield farming itself is quite straightforward the risk of impermanent loss might make it hard hard for beginners to gauge whether it's a worthwhile investment not to mention the risk of rug pulls smart contract bugs potential exploits and more like that that said though yield farming is an easy Gateway into defy and could be a sustainable option for passive income okay so we touched a bit on the proof of stay consensus mechanism but there is another popular consensus mechanism that cryptocurrencies like Bitcoin use called proof of work so in proof of work the validators are called miners who need expensive Computing Hardware to solve complex math equations that keep the blockchain running in exchange they earn newly minted tokens as rewards now not everyone can set up one of those mining operations with ease so instead Cloud mining offers a way for people to rent Computing hashtag power for a set period of time from an already established operation when you rent hashing power you pay for a share of hashing power and split the profits with the contract owner the plus side of subscribing to a cloud mining service provider is that it requires no technical expertise unlike setting up a mining rig on your own and also it can be sustainable in the long run and also low risk to rent out someone else's specialized Hardware but definitely look out for scams and choose a reputable Cloud mining provider okay so the next way to earn passive income is more familiar to those with savings accounts that earn interest so in the same way you could have a crypto interest account that earns you interest so you can compare the rates traditional cash savings accounts offer and see whether opening an account and depositing crypto or stablecoin gives you a better shot now make sure to go over the terms and see what's right for you so due to their technical ease and perception of low risk crypto interest accounts are especially popular among beginners now what all of these could be true do bear in mind that institutions are not infallible as we have seen in recent times okay so still treading on Familiar Grounds you could consider lending crypto Assets in exchange for earning an interest fee paid by borrowers some deposit pools are even further incentivized with token rewards that could help boost the effective interest rate in certain cases rewards are also used to subsidize the costs of borrowing which makes looping an effective farming strategy lending can be sustainable over long periods of time however there is some technical expertise required and also a level of riskiness to it depending on which lending strategy you take some D5 lending protocols to consider are of a compound Banky and Goldfinch just to name a few okay next up is a popular way to earn passive income in the traditional Financial Market though relatively rare in the crypto world so instead of earning interest on crypto assets you can instead earn dividends from the company that issued the tokens all you'll need to do is hold the token and you're automatically eligible to earn a certain percentage of the company's revenue for instance kucoin shares give their holders a daily share of its kucoin blockchain transaction fees in the long run it's pretty sustainable with minimal technical expertise or risk involved so long as the company's token continues to excel you're good to go okay so up to this point we've looked at ways to earned passive income that need you to have some amount of upfront Capital however with forks and air drops you could get free tokens simply by needing certain criteria so Forks happen when an existing blockchain branches off into a new protocol while airdrops happen when free tokens are dropped into users wallets as a reward for performing certain tasks with forks there isn't much you can do in your end other than staying tuned into the crypto ecosystem one example of this being the recent pow Fork after the ethereum merge airdrops on the other hand are more involved where users usually have to meet certain criteria like retweeting a post using a specific wallet trading on a particular platform or creating an account to receive newsletters and regular updates you could say there is some level of technical expertise and airdrops to stay on track and perform as many tasks as possible whereas Forks require less effort aside from scams there is fairly little risk involved in hunting for airdrops if dealing with small amounts of capital however as opportunities for air drops are not as constantly present as options like staking or yield farming and there is no guaran t for large payouts it is not as sustainable in terms of predictability and consistency okay so have you ever participated in a campaign to bring in new clients in exchange for earning Rewards well there are programs like that in crypto too perhaps you have a huge social media following well then you can partner with a platform as an affiliate and earn passive income by bringing in new users alternatively you could share an affiliate link with your contacts to sign up for a platform or submit an application and an exchange earn rewards in some cases you could continue earning passive income each time someone takes a certain action on a given platform though it's not so quick and easy it's certainly one of the easiest low risk and most sustainable ways to earn passive income over time with some ways like airdrops and crypto interest accounts it's pretty simple to get started on others however need some level of technical expertise like setting up wallets and becoming familiar with how the protocol operates in any case these are eight distinct ways to earn passive income each with its own set of opportunities and methods so make sure to carefully weigh the benefits and risk to reward ratio and let us know if you have any questions okay so that wraps it up for what you should know about earning passive income with crypto remember to like subscribe and turn on the notifications for future Alpha see ya [Music] thank you
