Today, there are many different ways to earn crypto, so you don’t have to build a complex hardware setup for mining or learn how to trade. Actually, there are many platforms which allow you to earn by simply depositing some coins and collecting interest. They are user-friendly and almost risk-free, so you can make it a great source of passive income. In this article, we tell you how they work and how to use them to earn some crypto without too much effort.
Passive ways to earn crypto
Staking is probably the most popular way to invest crypto at interest. While you can’t stake any coin, there are many blockchains that allow it, including the major one like Cardano or Solana. Moreover, the coming Ethereum 2.0 update will make the ETH blockchain available for staking. Staking means freezing some amount of coins for a certain amount of time to get a proportional reward, so you can think of it as crypto deposits.
There are also ways to invest crypto in the DeFi industry, and this method works just like staking: an investor freezes some amount of crypto, and the coins are lent out. Eventually, you receive the coins back with some additional interest as your reward. There are also direct crypto lending options which are provided by major exchanges. Basically, all these methods are similar for a common investor: all you need to know is they allow you to earn interest on crypto without actively doing anything.
However, you should know which platform you should trust. We’ve selected several reputable online platforms suitable for novice crypto investors.
One of the leading crypto exchanges, ByBit offers favorable conditions for crypto investors. You can stake stablecoins earning up to 5% in interest, and you can choose the time period yourself or invest for fixed periods of 30 or 60 days.
Coinbase is another major crypto platform that’s especially user-friendly and profitable. Now, you can choose between six different staking options, and the interest rates are pretty favorable. However, it’s worth noting that the platform charges fees for trading, and you can stake only the tokens bought via the platform.
Binance is the largest crypto exchange that offers an exceptional choice of coins for staking. You can choose from more than 100 tokens and invest them at interest via staking mechanisms or using DeFi projects with short-term bond periods.