3 ways to make money on dormant cryptocurrency

Today, everyone is looking for ways and means to earn extra money besides their regular job. This is what we callpassive income and does not require largeeffort or time. Gone are the days when people only invested in stock markets and bonds. This is 2021, and the financial market has opened up several alternative ways to generate passive income. One of the most popular investing trends today is cryptocurrency storage.

Cryptocurrencies have always been a popular sourcepassive income that generates rewards over a specified period of time. In the past, people bought and sold cryptocurrencies, which required technical skills and involved risks. Today, the decentralized finance (DeFi) market has undergone a massive transformation and there are many more profitable DeFi opportunities and applications that can help us earn digital assets at any time. Let's look at some of the best ways to earn passive income with crypto.

I want to talk about three ways to get passive income by storing cryptocurrencies.

1. Receiving interest on deposits

One of the best ways to make moneyevery month is about earning compound interest on your crypto savings. The process is pretty straightforward. Users simply need to register and open a savings account, and deposit funds or cryptocurrency from their crypto wallets. The income, although small, is stable. Interest can be withdrawn every month. Here's a list of the best resources for doing this:

Nexo:Nexo is one of the best platforms for earning cryptocurrency. Nexo does not charge any fees and supports over 40 cryptocurrencies. Interest starts at 5.9% per annum and 12% compound interest payable daily. Users can start earning instantly without any credit checks or account information verification.

Celsius:Celsius, another cryptocurrency wallet that pays maximum interest and also with zero fees. It supports over 30 cryptocurrencies including ETH, BTC, etc., and both 15% APY compound interest that is paid every week. In addition, Celsius provides stablecoin loans to its clients at 1% per annum. The interface has biometric authentication and anti-virus protection for its users.

BlockFi:BlockFi platform allows you to earn 8.6% APY and $ 25 bonus with a minimum deposit of $ 500. Simply open a BIA (BlockFi Interest Account) and start earning compound interest. You can use cash or local currency to buy cryptocurrencies like Ethereum, Bitcoin, Litecoin, USDC, etc.

2. Stacking PoS coins

Proof-of-Stake or PoS consensus mechanismallows cryptocurrency holders to place bets on the blockchain network. PoS coin staking gives stakeholders a voice, the ability to make decisions on the network, and earn passive income. The principle of staking is quite simple. The more money you invest in the network, the more passive income you have.

There are several PoS coins that allowplace bets with maximum interest rates. For example, SB Wallet promises staking rewards for DEL coins - 84.7% per year (0.2327% per day), BIP - 61.88% per year (0.17% per day), BTT - 14.56% per year. (0.04% per day) and PZM - 18.2% per year (0.05% per day). Exodus - Rewards for NEO - 0.93%; EOS - 1.76% and ONT - 5.57% APY. There are also wallets such as Coinbase Wallet, StakedWallet.io, Trust Wallet, Guarda Wallet, and even the Ledger Nano S / X allow you to delegate coins to staking.

Other popular PoS coins are QTUM, Cosmos,PIVX, LSX, XLM, ONT, ALGO, TRON, Livepeer, VET, EOS, etc. In fact, PoS currencies are one of the safest and smartest ways to earn passive income. You can earn coins without even participating in any transactions. All you have to do is keep your wallet open and you can earn a minimum of 1 to 85% in rewards.

You just need a wallet and coins.

Extraction of liquidity and yields

DeFi (decentralized) market growthfunding) has led to new applications and the ability to generate passive income through multiple platforms such as decentralized exchanges (DEX), staking and liquidity mining, also known as profitable farming. Profit farming is a new concept that works on the Ethereum network, is more secure, generates governance tokens and does not require much understanding or knowledge of cryptocurrency trading.

In addition, experienced investors have the opportunity toreceive more rewards by moving funds across different pools of liquidity with higher returns. Participants are called crop farmers and they invest or freeze their funds in the lending protocol. On the other hand, liquidity providers or LPs invest these funds on behalf of crop farmers in exchange for a reward. The higher the rate, the greater the commission and return on investment. But there is one small but significant nuance.

The DeFi sector with its yield is like Russian roulette: if it turns out to be not a fraudulent project, it can just burst like a soap bubble. But it can also bring a fortune.

So - go for it, and look for your way to make money on the crypt, which you just have nothing to do.

What type of passive income do you prefer? Feel free to share your experience.