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How to get a passive income around/with crypto

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by COINS NEWS 230 Views

So something that a lot of newer people might not know about is you can get a passive income with and around cyrpto very easily. Please note the scope of this isn't to teach the exact. This is just the basics to point you to the right direction.

Centralized Lending, DeFi and Exchanges

IMO this is the most profitable way of getting passive income. But there is some level of risk. I'm going to be using Pancake Swap as an example. But with places like Pancake swap you can put up a pair of requested tokens and in return with that exchange you get cake. The amount you get is depending on the pair. The amount can easily be around 130% APR. Normally 50% APR. Keep in mind as the value of stuff goes up so does this skyrocket your earnings. Note the pool and note some exchanges give the ability to compound daily.

For Defi projects I'm picking on AAVE, and note while I do yeild farm with decentralized exchanges. I don't do this because the ARP normally is below 10%. Some tokens you can get in the 300% APR or more. But this is rare. More than less there is safer ways with many coins to make around that.

Mining

There is GPU mining, CPU mining, and then new type of "mining"

CPU mining is almost never worth it. GPU mining with a RTX 2080 you're looking at about $3 a day. Keep in mind the more the coin price goes up after you get the coin, the more it's worth the more you actually made that day. So while $3 today, if the coin 10x over the years then you really made $30 a day.

The new type of mining is things like Helium which uses radio towers or Chia which uses your hard drive. There is others but it comes down to not actual mining, but being paid for renting space on your computer or being paid to keep some sensor or radio tower up. Note the amount you get from such things is very low, and the miner tends to be extremely expensive. Like $500 on the low end for some radio tower thing which realistically you can't do anything with anyways. There is a 5G one coming out, but the cost of that after all the hardware can be $2,500+. Basically not realistic for most.

Staking

Staking in general can be down to locked or unlocked. Lock is basically where you need to lock for a set amount of time. Lets pick on Algo. Algo as of writing this has an unlock staking program. But they are switching to a lock program soon. This means at this time just by holding it you have more coins coming in. You can trade or move it any time. The locked for Algo will now require you to hold it for 3 months and vote each time there is a vote. Normally for locked staking you only need to lock it for a set amount of time.

Normal staking amount you can get is 5%-10%. This means if you have a value of coins worth $1m. You will get $50k a year just for holding the coins.

Far better than the banks :P

Reflections

Reflections are newer. Basically reflections in most coins like Octans, Safemoon, and others work by when you trade or transfer there is a "tax". Lets say 10% to keep the math easy. With most half of that is burnt and the other half is sent to you. But at the end of the day with all of them a part is sent to you. This is highly unreliable but might be profitable over the years.

NOTE taxes.

submitted by /u/crua9
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