“A horizontal trading market often provides an opportunity to put your cryptocurrency to work and earn passive income. In the last Cointelegraph video, we analyzed strategies for generating income using cryptocurrency and evaluated the advantages and disadvantages of each.

staking

Staking allows cryptocurrency holders to generate income by supporting a proof-of-stake protocol. There are different approaches to staking. For example, solo staking gives you full control over your cryptocurrency but requires high technical expertise. In contrast, staking as a service allows you to delegate the process to a third party, which provides convenience but introduces decentralization risk for your cryptocurrency.

Crypto Savings Account

Crypto savings accounts pay interest on your cryptocurrency investments, often at higher rates than traditional bank accounts. This method does not require technical knowledge, but it carries the risk of transferring custody of your cryptocurrency to someone else. Understanding how the platform generates interest is crucial before entrusting it with your funds.

Yield Farming

Yield farming is the process of lending your cryptocurrency to a liquidity pool as a liquidity provider on a decentralized exchange. This can offer higher returns than staking, but comes with significant risks, including smart contract vulnerabilities.

To discover two additional ways to earn passive income with crypto, watch the full video on our YouTube channel and be sure to subscribe! We are waiting for your comments, which is the best strategy for you?