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.
1. 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.
WHERE CAN I STAKE?
You can stake cryptocurrency on almost all exchanges. Binance, Coinbase and even Wallets like Trust Wallet support staking.
HOW CAN I STAKE?
On an exchange that supports staking, you’ll usually see an option for staking in the Menu. See the Screenshots below.
2. 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). For example Binance is Cefi and PancakeSwap is Defi.
Yield farming users locking up their crypto assets in a smart contract-based liquidity pool.
Liquidity is simply how quickly and easily an asset can be bought or sold without causing 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, so before I’ll get a seller that wants Gold might 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?
You can Farm on DEX like PancakeSwap, Uniswap, Julswap etc. Farming is called “Staking” on Julswap.
HOW CAN I FARM?
Before you can farm, you have to put your assets in a Liquidity Pool.
First of all, check what Farming Pair you want to stake your assets. Then go to Liquidity pool and add assets.
Note you must have both assets in your wallet to be able to form a Liquidity Pool.
3. AIRDROPS – An airdrop is a marketing stunt that involves 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.
4. REFERRALS – Referrals is one of the best & possibly most underrated way of earning passive income in Cryptocurrency. In a referral program, users are given a link others can register with.
A referral link looks like any other URL link but it contains a unique identification code that tracks who the referral came from.
If an Active Trader registers through your referral link then you’ll earn a percentage off their trading fees… for life!
Be Careful when farming especially on a new token, or new platform promising high rewards.
Remember these are only Passive ways of earning, there are so many more ways to make money in #Crypto Space. You’ll learn as we Progress.