Earn money without having to do anything for it; a passive income. It is probably the dream of anyone who invests. Within the cryptocurrency world there are a number of possibilities to put your crypto assets to work. For example by buying your crypto to strike in a Proof-of-Stake blockchain. Another option is the world of Decentralized Finance (DeFi) where you can lend your crypto and get yourself paid to provide liquidity with your assets at decentralized exchanges. Finally, it can also be interesting to lock your bitcoin (BTC) or other crypto with crypto companies in exchange for interest.
Cryptocurrency Strike
The first and most popular option to generate passive income with your crypto assets is through strike†You can do this by downloading a wallet from a Proof-of-Stake blockchain and then putting your cryptocurrencies to work protecting the network. Another option is to stake through major exchanges that do all the technical work for you. For example, you can stake ethereum (ETH) in the new Proof-of-Stake network at exchanges such as Kraken and Binance. In return, they take a small percentage of the profits, but it’s an easy and hassle-free way to do this. For example, you can earn a return of 4 to 6 percent on an annual basis on your ether at the major exchanges. This way you benefit from any price gain on ether and you get a return on your tokens.
The magical world of DeFi
Another option is to channel your crypto assets into the DeFi world. Here you have countless opportunities to put your assets to work and generate passive income. You should bear in mind that the higher the promised return, the greater the risk you run. There is no such thing as free money, so be aware that depending on the choices you make, there will be consequences for your crypto wealth. For example, you can lend your crypto assets at decentralized lending platforms. In principle, they function just like banks and as a reward you receive interest on the lent funds, but it is possible that the decentralized bank will go bankrupt if it pursues a policy that is too loose and too many people cannot repay the loans.
Locking your assets with crypto companies
With various platforms it is possible to put your crypto assets to work by putting them in a kind of savings account. For example, you can choose to lock up your bitcoin for three months and receive a relatively low interest in return. After three months you will get your bitcoin back and you will also receive the interest. Please note that in all cases people take a risk with your crypto assets and it is therefore not an absolute certainty that you will get everything back. You receive the interest in exchange for the risk you take with lending or otherwise temporarily giving away your crypto assets.