When most people think about making funds in crypto, trading is usually what comes to mind. Over the years, the simple strategy of buying low and selling high has proved to be one of the popular ways of making money in crypto.
To an extent, trading can be profitable, still, it is risky, time-demanding, and emotionally draining. Also, the cryptocurrency market with its $2.9 trillion market cap is a hotbed for scams, hacks, and rug pulls.
Due to that, investors and treasure hunters are always skeptical about which project or avenue to trust and make more money from crypto aside from trading. The good news is that the crypto ecosystem offers several other income opportunities that don’t rely on daily price swings.
From airdrops, staking, yield farming, and DeFi protocols, there are numerous ways to earn money in crypto. This article contains some realistic ways to net more returns in crypto without trading.
Crypto staking: Earning passive income by securing networks
Aside from trading, staking is one of the simplest and popular ways to earn from crypto. It requires locking up cryptocurrency to help secure a blockchain network powered by Proof-of-Stake (PoS) or a similar consensus mechanism.
In return, stakers earn rewards that are commonly paid in the same token. Renowned cryptocurrencies like Ethereum, Solana, Cardano, Polygon, and Polkadot are examples of staking tokens.
More so, one can stake these assets through wallets, centralized exchanges, or staking platforms. However, the staking return of each token differs depending on the network, platform, and staking method.
Still, staking returns are mostly annual yields ranging from 3% to 5%. Many crypto investors prefer staking due to its attractive passive returns.
Staking requires low effort as rewards accumulate automatically once the investor stakes the assets. Nevertheless, network stability, lock-up periods, and slashing risks are downsides to this method and every investor must consider them before committing funds.
Yield farming: Making more money through DeFi
Yield farming is another means users can earn money by providing liquidity for decentralized finance (DeFi) platforms.
This avenue is suitable for long-term investors with a massive portfolio. Instead of letting their assets remain idle, they can simply deposit them into a liquid pool to support on-chain borrowing, lending, and token swaps.
In return, investors can earn interest, commission from network fees, and bonus tokens. DeFi outlets like Aave, Curve, and Compound are clear examples of yield farming platforms.
To an extent, yield farming poses more returns than staking and traditional finance investment, but it comes with risks like impermanent loss and smart contract vulnerabilities. Therefore, it is sacrosanct for investors to understand how each protocol works to avoid taking uncalculated risks.
It is important to trust reputable platforms to navigate these risks, as yield farming requires serious commitment.
Mining: Contributing computing power to secure networks and earn rewards
While crypto mining is becoming less popular, it still remains one of the trusted means of earning free cryptocurrencies. Mining requires using computing power to confirm transactions and secure blockchain networks that employ the Proof-of-Work (PoW) consensus mechanism.
Popular cryptocurrencies like Bitcoin, Litecoin, and Monero all operate on a PoW blockchain network. However, the Bitcoin network due to its global adoption is dominated by large-scale mining, still, small miners can make a profit by joining mining pools.
Mining demands upfront investment in sophisticated computing equipment and technical setup. Nevertheless, it can offer steady rewards if managed efficiently.
For individuals in areas with stable low-cost electricity, crypto mining is a good way to earn more crypto without trading.
Parting words
There are many ways to make money in crypto that don’t require risky trades. NFTs, content creation, staking, yield farming, and mining are various ways to earn income by exploring the broader blockchain ecosystem for opportunities.
For instance, creators can mint and sell digital art, music, videos, or even written content. Also, developers can design NFT games or utilities, receiving funds from primary sales and royalties
Nonetheless, it is imperative to understand the risks and choose verified platforms. Likewise, making gains from crypto requires long-term commitment, which makes it a risky asset class for those seeking quick profits.
By accessing these options, investors can diversify their crypto income and build sustainable earning strategies beyond trading.
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