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Over the last decade, the cryptocurrency market has developed into something much more than just a marketplace to buy and sell cryptocurrencies - it has invented decentralized finance, redefined the concept of 'currency' and in the process has developed a multitude of ways investors can generate passive income.
In this post, we'll take a look at the many opportunities to earn a passive income within the cryptocurrency space, including:
- Yield Farming
- Metaverse Nodes
- Renting Land in the Metaverse
- Web 3.0 Nodes
- NFTs (offering passive income)
In simple terms, staking basically means allocating capital (typically to provide liquitiy) in exchange for a reward. Many of the top 20 cryptocurrencies offer staking and it can even be done at some of the more popular exchanges, such as Coinbase.
There is also Anchor protocol which offers up to 20% APY on stable coins.
While I don't advocate holding crypto on an exchange, some cryptocurrencies offer staking from within the native wallet, which is a much safer alternative. If you are looking into earning passive income, it's worth researching if the cryptos you already hold offer staking - it is a simple method to earn passive income on your holdings.
Yield farming is another method to earn rewards by providing liquidity to the market, typically through DeFi. Yield farming involves adding funds to a liquidity pool and these pools are used as a marketplace where other users can exchange, borrow, or lend tokens.
For example, Pancake Swap is one of the more popular yield farms, with the most popular exchange pair being CAKE - BNB offering an APY of 37%.
Pairs with low liquitiy and high demand offer higher returns, such as TINC-BNB at 316% APY. Yield farming can involve more work than simply staking however there are also greater rewards offered.
A personal favorite of mine is Masternodes. Masternodes have been around for almost as long as cryptocurrencies and were first developed as an anonymizing mechanism for privacy coins. A masternode provides computational power to the blockchain and in return the blockchain rewards the masternode with the native currency.
Likely the most popular masternode is DASH, which today is now priced at over $100,000. I remember when you could purchase a DASH masternode for under $10k (many years ago).
If you are interested in learning more about masternodes, we recently identified the top masternode projects for 2022 in the article below.
Similier in concept to masternodes, recently big projects like Gala Games have implemented use of 'nodes' to help distribute content and decentralize gameplay and as a reward, these node holders are rewarded.
A Gala games node was initially offered for $1,000. Today, these nodes are now selling for over $100k and generate over $3k in passive income per month.
If you are interested in learning more about metaverse nodes, we recently identified the top metaverse nodes for 2022 in the article below.
Renting Land in the Metaverse
Another recent development within the metaverse has been the renting and or leasing of land within the metaverse. Just like we have property owners in the real-world, metaverse property owners are renting and leasing their land out in these virtual spaces - with none of the issues we encounter in the real-world.
It's likely metaverse land ownership will become one of the more profitable investments in the near future and its a topic I hope to write more about in future reports.
Web 3.0 Nodes
A Web 3.0 node is also similar to a masternode, except these nodes help to provide infrastructure for projects within the Web 3.0 space. This can include offering computational power, data storage or a wide assortment of decentralized services.
Web 3.0 nodes are a whole subject onto themselves and if you are interested in learning more about Web 3.0 and the passive income opportunities, we recently wrote an article specifically about this below.
Passive Income NFTs
Last on this list are NFTs. While most Non-Fungible Tokens are simply pretty pictures many projects are adding utility to their NFTs.
For example, the project BlockChainMiners Club developed a series of NFTs and used the proceeds to buy cryptocurrency miners. The profit generated by these miners are then redistributed to the NFT holders as a source of passive income.
Increasingly, we are seeing more NFT projects add utility to their projects, such as the opportunity to earn passive income for holding their NFT.
Altcoin Pick for April
In the next week, we will be publishing for our members the Altcoin Pick for April. If you are not yet a member and don't want to miss out on the next Altcoin Pick, consider becoming a member today.
Thanks to all our members for their patronage.
Until the next report,