Ways To Earn Passive Income with Crypto - Crypto Breakdown January 18, 2022

Episode Summary:

On Today's episode of Crypto Breakdown, I share some tips on how to earn passive income with Crypto.

Questions? Ask at [email protected] and we will answer!

Hosts:

Joe Dewitt Follow at: https://twitter.com/metabitz

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Hey, everybody happy Tuesday. Hope you had a wonderful week. My name is Joe Dewitt, and this is the crypto breakdown. Today. I'm going to discuss a bit on how to earn some passive income and the crypto world. So the first method to earning some income that is probably the most popular would be staking.

Now, if you're unfamiliar with consensus mechanisms, the two most popular are proof of work and proof of stake, proof of work, validates blockchain transactions. By using computing power. On the other hand, proof of stake are validators that have staked, some cryptocurrency and out of that pool are chosen to validate transactions and they are rewarded with a bit of crypto.

So this makes a great alternative for those looking to diversify their investments and make a little bit of passive income. Some example of these staking mechanisms would be car Dano, polka dot. And Ethereum 2.0, when they finish unveiling, all of that, they have not yet introduced those staking mechanism, but they have teas that later this year it will be released.

Another method would be a dividend earning tokens, which are very similar to stock dividends, where you receive a percentage of the tokens value in a dividend earning every so often throughout the year, changing it, depending on the coin, each coin has their own token Nomics and dividend earnings. If they have some example of this would be Q coin where holders receive a daily share.

Uh, fees. Um, although they may be small, it is still earning passive income. Another option for earning passive income would be yield farming. Now yield farming means providing liquidity for a decentralized exchange. So something like unit swap or pancake swap, and essentially you put up a pair. So if you wanted to provide liquidity for Ethereum and USD tea, so the desired amount you wanted to put up, you would put half an Ethereum and half in USDA, and you are providing liquidity for.

For that Dex pool and end reward, you will earn income based on the amount of transactions. So somewhat similar to staking, although instead of for verifying transaction, it is used to actually, um, transfer liquidity from different tokens. So the final way to earn passive income, I want to discuss would be how some NFT projects actually offer airdrop token.

To holders of projects. So for example, hash mask, a very popular NFT project, um, by being a holder, you receive a 10 NCT a day, which means just by holding that piece of art, you are actually accumulating a token daily, which later down the road could turn to a very considerable passive thing. Now, there are many other NFP projects out there that do very similar token Nomics and provide a token for holders.

Although this is just the example that came to my mind and it is really cool to see, um, how we are just starting to scratch the surface with these sources of passive income and airdrop tokens. As later down the road, when these have more utility, people are looking for more alternative ways to earn passive income.

I think that these will, um, be very, very popular later. Keep in mind, all of these aspects together provide really strong opportunities for earning passive income, but on their own, they usually yield small percentage. Although on their own, they usually yield small percentages as if they did yield very high percentages.

Um, everyone would do it and the rewards would not be as high that's all the time we have for today. Guys. I hope I answered some of your questions on how to earn some passive income and crypto have a great day.