Earn Crypto Passive Income: TOP METHODS Revealed!! 💸

i'm going to go out on a limb here and say that most of us are probably bullish on crypto you probably also have a decent chunk of your personal investments in crypto i know i do we all hope that those coins and tokens that we've chosen will be worth much much more in the future be that six months a year or 10 years we are hodlers the only problem is that when you hodl this crypto it doesn't earn you any passive income or interest even useless fiat currency earns you poultry interest when it's stored in a bank account however there are a number of ways to earn passive income in crypto passive income that can slowly increase the size of your crypto stack in this video i'll be taking you through some of the most effective ways to earn additional income from your crypto holdings i also have a few tips and tricks to increase returns as well as some common scams you have to avoid so you don't want to miss this video [Music] before we proceed some legalese if you please don't let these dapper threads and charming demeanor fool you i am no financial advisor that means that everything you're about to hear is for educational and informational purposes only i subscribe to the dyor school of thought you should too if you're a bit lost right now well you must be new my name is guy and i'm the head guy here at the coin bureau over here i cover everything crypto from educational guides to coin overviews and token reviews it's all on my plate so if that's something that you would like to avail yourself off gently tap that subscribe button you may also want to ping that bell for good measure notifications will make sure that none of these videos slip off your watch list finally you'll notice that i've broken up this timeline over here into a number of different sections those are there to save you time should you want to skip around although i would try to avoid missing any of this vital info alright folks you ready to start stacking sats let's start off with probably one of the most simple methods centralized crypto lending platforms these are basically lending services that offer deposits and loans on a centralized platform those who deposit their crypto earn interest on those funds so it's pretty similar to how it works in a bank account these services will hold your crypto and lend it out to generate interest this interest is then paid to you in your account on a daily basis allowing you to compound daily the main difference here though of course is that all these crypto loans are heavily collateralized that means that the amount of funds that these borrowers can loan is always less than the value of the crypto i should also note that unlike term deposits in bank accounts you do not have to tie your crypto up for a certain period of time with most lending platforms you have access to your funds anytime similarly most of these platforms support numerous coins that means that you can usually earn interest on the coin that you're looking to huddle alternatively if you would just like to earn a higher interest on usd than you earn in a bank account then you can simply supply stable coins like usdt and usdc now when it comes to these services you have to be very careful with those you decide to use because they hold your funds you will want to make sure they are 100 legit and secure now there are quite a few lending services out there but perhaps three of the most well-known are celsius blockfi and nexo nexo is great if you're based in europe they have over four billion in assets under management and they were founded by a well-known fintech firm called credesimo they provide instant lines of credit and crypto lending services as well as a crypto card tied to your account nexo has a utility token which has also been designed to provide benefits within the nexo ecosystem in terms of interest rates they vary according to the coin that you're supplying as well as whether you would like to earn nexo tokens or in kind the latter really just means earning the interest in the same coin that you've supplied in we are interested in growing our current stack so i will choose in kind here are some of the rates as you can see we are earning about 12 apy on the top end with stable coins and about eight percent on the lower end for assets like eth and btc for those based in the u.s you have block fi and celsius blockfi has been in the press quite a bit recently as they've been raising hundreds of millions of dollars to fund their growth they have over four billion dollars in aum and this has increased considerably in 2020. interest rates on the platform are up to a maximum of eight point six percent on their blockfy interest account you can earn up to nine point three percent apy if you supply stable coins like usdt i should however point out that blockfi suffered a hack last year where customer data was leaked it is important to stress that this was not a crypto hack and no customer funds were breached however a hacker knowing that you hold crypto as well as your personal details is not a great position to be in it's for this reason that my personal choice is celsius they offer some pretty attractive rates on a range of different cryptocurrencies for their u.s customers we're talking about 6.2 percent awi on bitcoin and up to 10.5 percent on stable coins like usdt they also do give their international users the option to earn interest in their native sell tokens this allows you to earn slightly higher rates i should also point out that celsius is entirely mobile and you can earn and lend right there on the app there is a lot more to celsius which i can't cover here but feel free to watch the dedicated video i did on it last year that's linked to in the top right now whichever one of these services you do use it's very important to point something out these are centralized which means that you don't technically control your crypto it's analogous to keeping your funds on the likes of coinbase at al moreover given that these services are regulated you will have to complete kyc before being able to use them okay so what happens if you would prefer to control your own keys and avoid that kyc rigmarole well that is where defy lending comes in when it comes to decentralized finance one of the primary features that it enables is trustless and permissionless peer-to-peer lending borrowing essentially instead of a centralized lending platform matching lenders and borrowers you have a set of smart contracts smart contracts that will adapt interest rates based on the supply and demand for those coins on the platform the most important thing to understand about defy is of course the fact that you are in full control of your keys at all times there are no platforms which can restrict you from earning interest and you don't need to complete any kyc all you need is a web 3.0 wallet that can connect to these lending dapps and you can start earning interest these lending contracts accrue interest continuously which means that the impact of compounding is likely to be considerable as is the case with the centralized services above you are not beholden to any sort of lock-up period and you can withdraw these funds anytime there are numerous lending protocols currently on the market you can take a look at some of those with the most funds locked into them tvl over on defypulse.com if you wanted to get a sense of the best rates currently on the market then you can check out the lending tab over on defy rate here you can see what each of the protocols is yielding for particular coins this of course includes some centralized platforms so be careful when it comes to those protocols i am most happy using these include the likes of ave and compound these are actually numbers three and two when it comes to total value locked tvl rankings here you have all of the rates over at the likes of compound finance as is the case with the centralized platforms stablecoins earn a higher return than most other cryptos at the time of this video you could get about 10 on usdc whereas you would only get about 0.4 in wrapped bitcoin oh and if you have no idea what wrapped bitcoin is well it's basically tokenized bitcoin that will allow you to use d5 protocols while still maintaining exposure to bitcoin i've covered it in a separate video which i've linked to in the description for you folks anyway that's not a really attractive rate of interest i will admit however in the defy markets the need for wbtc funding is less pronounced than the need for bitcoin on centralized platforms when it comes to rv they have many of the same lending pools as compound finance and as is the case with compound you have higher rates of interest on stable coins than you do on normal crypto assets in fact you're likely to see many of the same lending rates across most of these protocols thanks to arbitrage opportunities if these rates were different defy users would quickly take advantage of them and thereby shrink the difference that's a pretty efficient market but i digress if you wanted to supply interest to any of these protocols then you can use a defy wallet my wallet of choice is metamask and if you wanted to know how to use this wallet then you're in luck i have a complete guide for you folks you know where to go to get that good stuff now if you're going to be using decentralized lending platforms then there are a few things for you to consider firstly the buck stops with you if any of these platforms was to suffer a hack then you have no regulator or agency to turn to this personal responsibility comes part and parcel with taking control of your own finances you also have to consider that depending on what network you're using you are likely to incur considerable fees this is particularly the case if you're using an ethereum based lending platform there are other lending ecosystems out there like the binance smart chain that have lower network fees although this comes at the expense of decentralization okay so that's decentralized lending however d5 is really a magic box of opportunity when it comes to generating passive income another really lucrative method for doing so is through liquidity mining and yield farming so let's dig into that shall we quick overview liquidity mining is the practice of supplying liquidity to a protocol which is then used in order to facilitate the decentralized exchange of different assets you are what is termed a liquidity provider who will earn trading fees when two assets are swapped for one another so at the most basic example you can supply usdc and eth to a usdc eth pool and you will get what is termed a liquidity provider or lp token these tokens then represent your share in the pool and the token will appreciate in value based on the fees that are earned when swapping in the decks it's really quite a common setup on these automated market maker dexes such as uni swap one-inch sushi swap bancor etc these fees vary based on the amount of trading volume that's going through these pools there is also another thing that you have to consider when supplying liquidity to amms like this and that is the threat of impermanent loss this is something that i covered in quite a lot of detail in my video about the top dexes another important thing to consider with these dex protocols is liquidity mining incentives these are often thrown in as rewards to those who are supplying liquidity in order to sweeten the incentives they're usually in the form of governance tokens which can themselves have a great deal of value in the future so that's liquidity mining when it comes to yield farming this is a much broader concept that usually incorporates lending and liquidity mining in order to chase the best yield yield farming is probably where you'll have heard about some of those insane face melting yields that go into the hundreds or even thousands of percent of course it's risk versus reward with these types of things yield farming is generally in the more risky bucket when it comes to passive income now in practice yield farming is quite complicated and it's not something that i would recommend newbies embark upon however there are platforms that make the process of yield farming that much more easy essentially they are able to automate this process one of the most well known in the space is of course yearn finance this is a protocol that's been around for over a year now and has built a pretty user friendly front end this allows d5 users to simply connect their wallets and supply liquidity to earn interest the extensive yield farming strategy that goes on behind the scenes is not known all the users see is this screen over here where they can earn some of those impressive yields for example here is the return that you can earn on the pickling sushi swap lp token you are able to earn over 60 apy and the protocol engages in some of these really mind-blowing yield farming tactics i personally would not be supplying liquidity here but it's interesting nonetheless you can of course just supply straightforward stablecoin liquidity like usdc on year and finance this current apy that these usdc volts are earning is almost 20 that's much more than you would earn directly on one of the lending platforms last year when yield farming was at its peak i was supplying liquidity to tokenized bitcoin pools and earning about 10 percent on that of course those rates have fallen considerably given the broader market dynamics don't forget that no arbitrage condition now there's a lot more to yield farming which i really can't go into here there should be videos on youtube that could explain it better now what are the risks well you're supplying liquidity to yearn volts who will then be moving that around to different lending protocols and liquidity mining programs there is a real smart contract risk and lending pools have been exploited before if that's a concern of yours then there is one more feature that's offered by yearn finance that you may find interesting this is what they call their cover feature which is smart contract insurance basically you are able to buy insurance on some of the yearn vaults against the risk of smart contract exploits now of course this will reduce your interest rate and return but it could give you peace of mind okay so that's liquidity mining and yield farming they're not for everyone and if you're just starting to dabble i would highly suggest that you start with limited funds don't yolo your dough like a newbie defy degen time for a quick shout out to the sponsors of this video acquainting.com most people don't know that they offer a tip top crypto tracking app it's like block folio but with none of that lag when you refresh price data the app gives you that market overview the option to set price alerts and check your trading performance recently they added a new feature which allows you to create compare and explore different portfolios that includes portfolios from well-known crypto vcs like pantera capital and even better it's free to download now unsurprisingly accointing.com's key mission is to make filing those crypto taxes a breeze easily connect all your crypto wallet and exchange data via csv or api a few clicks and bang those taxes are done so if you're based in austria germany switzerland the uk or the us then you might want to do yourself a favor and check that out paid plans are available for frequent traders and if you sign up using the link below you'll get a whopping 25 discount now back to the magic the next passive income method that i have for you is also one of the most well known this is of course the returns that you can earn from staking cryptocurrency in proof-of-stake pos blockchains essentially you are staking your coins in order to help maintain the decentralized consensus essential for blockchains to function the main benefit of staking is that not only are you helping to take part in securing the network but you're also earning decent returns in kind of the coin or token that you're most bullish on when it comes to this staking you have a number of different options this would depend on whether it was a pure proof-of-stake or a delegated proof-of-stake blockchain the former means you solo state directly on the network whereas the latter means that you will delegate your stake to validator nodes now when it comes to staking on these blockchains there are a number of things you have to consider wallet support staking complexity payout terms lockup periods and of course staking returns different coins or tokens will have different staking parameters however which coin you decide to stake should entirely be based on how bullish you are on said coin earning high rewards on a shitcoin is still earning rewards so i'm only personally staking those coins that form part of my portfolio these include cardano polkadot avalanche and cosmos for cardano i am delegating my ada to a staking pool and i'm generating about 7 yearly reward at the time of this video with polkadot i'm also delegating my dot to one of the delegates called nominators the return that i'm getting after fees is about 12 to 13 apy i'm also delegating my avax and atom to avalanche and cosmos validators respectively the rates i'm getting there are about five percent and eight percent respectively now if you would like to stake any of these coins then i've left handy guides for you below you should of course consider those five things that i mentioned earlier noting that some methods may be more complicated than others having said that most of the coins i've mentioned have native wallets that allow you to stake and pick validators from pro tip if their wallets have hardware support then that will allow you to cold stake your crypto and yes that is as cool as it sounds see what i did there anyways with cold staking you are securing your crypto offline while still being able to stake and earn those returns of course if most of this sounds a bit too complicated for you then you can always just choose to stake your crypto on an exchange here they are effectively the validator and will handle everything to do with the staking it's pretty straightforward and can be done in a few clicks of course that convenience does come at a cost you are staking on an exchange which means they hold the keys so you can think of it as analogous to the lending platforms i mentioned in the beginning you also have to consider that by staking on an exchange you are contributing to the centralization of a distributed network the more voting power an exchange has the more they can influence decisions in governance votes on the network if you're still keen on exchange staking then your best bet is perhaps binance as they have the most token and coin support in addition to those coins that i've mentioned in my portfolio they also support an additional 46 other stakeable chains if you want 20 off fees on binance then you can use my link in the description so that's staking for you it's a great way to earn juices on a coin that you were going to huddle in any event i now want to move on to some of the biggest passive income scams that you need to avoid given that ponzi schemes tend to pay out like a passive income investment they are extremely common in the crypto space every week there's a new pyramid or ponzi scheme that someone brings to my attention those same scams that appear to have unrealistic return expectations they come in a number of different guises here are a few examples that i tend to come across number one investment schemes where someone will trade the markets for you you will earn a steady daily return based on their trading prowess recent examples of known scams like this include the likes of amphi x mirror trading international and a few others number two cloud mining schemes where you will buy a certain amount of hash power in a mining facility and earn a regular mining reward one of the most well-known frauds in this area was the bit club network and finally you have lending platforms where you'll earn interest from those that are borrowing from the platform a prime example of this was one of the largest crypto ponzi schemes to date all of these ponzi schemes can sometimes be hard to put a finger on as they tend to advertise through legitimate websites and social media platforms they buy ads on google and facebook the real sad thing about ponzi schemes though is that they actually work that's the whole point they pay out these suspiciously high rates of return for as long as they have new people coming into the funnel sometimes ponzi schemes can run for years until they eventually collapse so how do you spot a ponzi scheme well there are a number of red flags i tend to look for do the returns seem too good to be true when annualized you can always compare these to some of the lending or staking rates that you can get with the methods that i've mentioned above if it's much higher then there is something that they are not telling you then does it work on a tiered referral or mlm type structure given that ponzi schemes need new money to pay old money they need to keep them coming in the door they often turn to their users to refer these people and users will earn themselves a commission for doing so our returns guaranteed now if there's one thing that i've learned in my life it's that no investment is ever guaranteed in general it's pretty easy to avoid falling for these ponzi schemes all you need is a healthy dose of skepticism as well as a partial for doing your own research if you still want more pointers on how to sidestep these scams and other landmines then my comprehensive video on it is just what the doctor ordered served up right here when it comes to crypto investing many people extol the virtue of the huddle and they're right hodling can be a very effective method to benefit from long-term price appreciation however crypto sitting in a wallet does not have to be dead funds there is nothing stopping you from using that crypto to earn additional crypto if you're just getting started and would like to start with a simple and effective lending solution then there is nothing wrong with the likes of celsius blockfi or nexo alternatively if you'd like to hold your own keys then you can always consider using defile lending protocols just remember holding your keys means all the responsibility rests with you if you're feeling adventurous and would like to dabble with liquidity mining or yield farming then that is an option however do realize that these are some of the riskiest defy activities and smart contract vulnerabilities are common or why don't you stake some of your coins when you stake in a proof of state blockchain not only can you earn decent returns but you can also play a part in its broader decentralization and that's pretty epic in my book but whatever you do with your funds folks please don't fall for a ponzi scheme i cannot tell you how many of my subscribers write to me daily about some elaborate investment opportunity now i'm not a financial advisor but here is some practical advice just don't do it i would love to hear some feedback from you good people now any other passive income methods that you know of or do you have any questions for me let your fingers do the talking in that comment section if you enjoyed this video then have i got some treats for you would you believe it but there is content that you are not getting here on youtube that's right i have a number of other places where you can follow me for daily market updates you can follow my insider telegram channel you can also follow me on instagram and ticktop where i share behind the scenes views as well as info about these upcoming videos and for the piesta resistance there is my weekly newsletter this is a once weekly email that i send out every sunday that takes you through everything that's on my mind it's also where i share details about my personal portfolio all that gold is linked to below in my socials page and finally given that you've made it this far i assume you found it useful well help me help youtube help you by turning that like button blue don't forget to subscribe and ping that bell you don't want to miss what else i have in the pipeline that's all for today au revoir

Channel: Coin Bureau

Views: 697,607

Rating: 4.9710016 out of 5

Keywords: Crypto, Passive Income, Nexo, Celsius Lending, Interest, Bitcoin, Defi, Liquidity Mining, Yield Farming, Aave, Compound Finance

Id: Sqo0pOd4dnI

Length: 26min 8sec (1568 seconds)

Published: Sun Apr 04 2021