Looking for ways to make your crypto work for you during a period of sideways trading in the market? In a recent video from Cointelegraph, we examined five strategies for generating revenue with crypto and evaluated the pros and cons of each approach.
Staking
Staking allows crypto holders to earn income by supporting a proof-of-stake protocol. There are different ways to stake your crypto. Solo staking gives you full control over your cryptocurrency but requires high technical expertise. On the other hand, staking as a service allows you to outsource the process to a third party, providing convenience but introducing the risk of centralization for your crypto.
Crypto Savings Account
Crypto savings accounts offer interest on your crypto deposits, often at higher rates than traditional bank accounts. This method doesn’t require technical knowledge, but it does involve the risk of outsourcing the custody of your crypto. Before trusting a platform with your funds, it’s important to understand how they generate interest.
Yield Farming
Yield farming involves lending your crypto to a liquidity pool on a decentralized exchange as a liquidity provider. This can yield higher returns than staking but comes with significant risks, including vulnerabilities in smart contracts.
To learn about two more methods for earning passive income with crypto, check out the full video on our YouTube channel and be sure to subscribe!