Cryptocurrencies created vast opportunities for people. Through blockchain technology, many services are now decentralized and much more efficient, including financial services through DeFi.
DeFi services have provided people with many passive income opportunities, some of them which we will briefly cover in this article. While they may sound lucrative and easy, it is essential that you choose a good project if you want to earn passive income with cryptocurrencies. Hence, this article will cover some of the best crypto passive-income projects that can help you gain huge profits while staying idle.
Passive Income with Cryptocurrencies
There are many ways that you can earn passive income with cryptocurrencies. Some of them are staking, mining, lending, interest-earning deposits, gaming, dividend-earning tokens, yield farming, etc.
Most of these ways require that you have an initial investment of the cryptocurrency that you want to use. Furthermore, the market largely affects passive income, and the ones that require you to lock your money could be risky due to the volatile nature of cryptocurrencies. Nonetheless, most passive income generators allow you to use stablecoins so that you can have steady gains and not have risk at all.
Best Crypto Passive Income Generators
The likes of Ethereum, Solana, and Terra dominate the market when it comes to staking. While they are still quite profitable, these are the best crypto passive income generators that stand out for 2022:
AlgoVest (AVS)
AlgoVest is one of the most promising passive income generators for 2022. The project aims to make DeFi much more accessible and much more advanced through its AI technology. This algorithm aims to generate huge returns for AVS users. Simply holding AVS tokens could be profitable due to the buyback and the burning mechanisms that the project has. 80% of the buybacks are rewarded to AVS stakers, while the remaining 20% is burnt from the total supply.
Staking rewards are up to 8% APR, and investment yield is up to 60% APR on USDC stablecoin. You can stake AVS to gain access to the USDC yield pool at https://pool.algovest.fi. As an ERC-20 token, AVS can be stored in every ETH-based wallet. Besides the incredible features that AlgoVest has as a passive income generator, it is now working on NFTs, which can greatly increase the utility of the AVS and the GRAIL (Governance token) tokens.
Cardano (ADA)
Cardano is one of the most discussed cryptocurrencies in the world. It’s been in the top 10 rankings based on market cap for quite a while now. While ADA has not performed quite well ever since it hit an all-time high, it is still one of the most reliable cryptocurrencies in the market. Besides being more energy-efficient than Bitcoin and even often perceived as an Ethereum killer, Cardano is also a very good project when it comes to passive income. With the smart contracts launched recently, many DeFi-based projects have been launched in the Cardano network, providing plenty of profitable DeFi services.
Moreover, users can easily stake their ADA tokens and earn rewards as a result. You can earn up to 7% APY through staking ADA, making it one of the most reliable passive income ecosystems in the market.
Uniswap (UNI)
Uniswap remains one of the most used decentralized exchanges in the crypto market. Built on the Ethereum network, Uniswap is now the most used platform for ERC-20 tokens. Due to Ethereum’s impact in decentralizing financial services, Uniswap makes sure to try and keep trading fees as low as possible.
In terms of passive income, Uniswap excels at the yield farming opportunities that it gives to its users. For instance, Uniswap users can become liquidity providers (LP) by giving liquidity to various pools. To illustrate, if you want to provide liquidity for the ETH/UNI pool, then you should deposit both ETH and UNI.
Moreover, you can also stake UNI tokens and receive more than 3% annual returns.
PancakeSwap (CAKE)
Similar to Uniswap, PancakeSwap is also a very reliable decentralized exchange that provides great passive income opportunities. The main difference between PancakeSwap and Uniswap is that the former is built on the Binance Smart Chain (BSC) rather than on the Ethereum blockchain. PancakeSwap may not have the trading volume that Uniswap has, but it has much lower fees, giving PancakeSwap the upper hand.
In terms of passive income, PancakeSwap works similarly to Uniswap. You can stake CAKE tokens or you can provide liquidity to various pools and gain huge returns as a result.
Polkadot (DOT)
Another project worth mentioning is Polkadot. This Web3 ecosystem is unique in various ways, allowing other networks and oracles to work with one another. This has made Polkadot one of the best ecosystems to build and develop various DApps and compete with others such as Ethereum.
Similar to other PoS projects, you can stake DOT tokens. With that said, staking rewards can go up to a 15% annual yield.
Polygon (MATIC)
Last but not least, Polygon is one of the most scalable cryptocurrencies in the market that could serve as a passive income generator. Besides the efficient and cheap transaction fees, MATIC tokens can be staked. To do that, you need to delegate your assets to validators.
As a delegator, you earn the returns after the staking period, minus the small fee that the validator gets. While this may seem less profitable than other PoS cryptocurrencies that do not require validators, Polygon actually offers up to a 20% APY reward, making it quite profitable.
Takeaways
- People can earn passive income with cryptocurrencies.
- Some ways that you can earn passive income are staking, mining, lending, interest-earning deposits, gaming, dividend-earning tokens, yield farming, etc.
- AlgoVest (AVS) is one of the most promising passive income generators of 2022.
- Besides AlgoVest, Cardano, Uniswap, PancakeSwap, and Polygon are great as well.