Building Passive Income With Crypto

Blue Simple General greeting Independence Day Twitter Post 1.jpg

Building Passive Income With Crypto

For me one of the recent most beautiful things is the possibilities it brings with passive income through various methods. In this article I'll be going over way to earn passive income with crypto in general. If you're interested in more detailed passive income methods I wrote about those in separate articles listed here.

Passive Income With Fiat

Passive Income With Hive Blockchain

Passive Income With Splinterlands

leoline.png

Overview Of Passive Income With Crypto

It wasn't until the last few years where passive income with blockchain actully became a thing. There were no blockchains that offered up staking rewards and instead you had to actively mine and contribute to the network in order to earn more of it. There were also platforms that launched that provided cloud mining but to find out today that all of that ended up being a big scam. However these platforms had huge popularity because of the passive nature of them and it's what I believe things like DeFi, Staking etc are going to catch on more and more as we move into the future of crypto.

Staking

The first method of earning real passive income came from proof of stake rewards. By simply holding the token and passivly leaving your wallet open to stake and process blocks you earned crypto for doing so. A increasing number of these blockchains has been born over the years and one of the largest examples of this was when Ethereum went to proof of stake.

Staking offers up a way to securely still hold your assets while earning a interest on top of it. Blockchains like Hive for example offer powered up hive to currently earn about a 3% APR just for holding on to it powered up.

DeFi

DeFi exploded two years ago and was one of the many contributors to the fast growth of crypto during the bull run. However when you look at it DeFi only peaked at 175 billion in value when the market cap was well on it's way to 2.5 trillion showing that it only made up for a fraction of the value of crypto.

Since then DeFi has been under serious pressure from rug pulls, hacks and more. However the core basics that have become trusted names continue to thrive to this day and it often reminds me of the bad actors of 2017 that created fake projects and junk tokens to try and syphon off money from the platform. This happens with everything new sadly with bad actors but for the most part the entire system does figure it out. Better regulation form the community and blockchain needs to start happening.

Lending

Personally I stay away from this but lending is for sure a option with crypto. P2P or Peer to Peer lending is a big money maker and allows you to act as a bank. In most cases collateral can now be put up such as NFTs and other assets in a smart contract for the loan. Much like a bank would do for a loan they give out.

Combining It All

Many applications are now working towards combining many of these aspects under one roof. One of the biggest clear examples of this is Splinterlands offers up so much utility including DeFi , staking and renting/loans. I can see more of this happening as we roll into the future as more applications start to build in house solutions or solutions that generate revenue for the token and company through various methods other then direct sales.

Posted Using LeoFinance Beta



0
0
0.000
4 comments
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000