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What is Passive (Crypto) Income?

Dive into staking, yield farming, liquidity mining, and more to maximize your investments. Ideal for both beginners and seasoned investors in the cryptocurrency world.

Passive income with cryptocurrency


Passive income refers to the generation of regular earnings from crypto assets without the need for active trading or management.

Passive Income is attractive to many investors because it offers a way to earn from their crypto holdings with minimal effort.

There are several methods to achieve this:


Staking involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Essentially, you lock cryptocurrencies to receive rewards. In many Proof of Stake (PoS) blockchains, staking contributes to network security and the validation of new transactions.

Yield Farming:

Yield Farming is a more complex process involving providing liquidity to a DeFi (Decentralized Finance) protocol in exchange for interest or fees generated by the platform. It often involves lending crypto assets in DeFi platforms.

Liquidity Mining:

Similar to yield farming, liquidity mining involves providing liquidity to a DeFi protocol but with the additional incentive of earning new tokens in addition to the usual return from fees. This can sometimes offer higher returns but with greater risk.

Interest-Earning Accounts:

Some platforms offer interest-earning accounts where you can deposit your cryptocurrencies and earn interest, much like a traditional savings account but often with higher rates.

Dividend-Earning Tokens:

Some projects issue tokens that pay dividends to holders, usually a share of the project’s earnings or revenue.

Mining and Cloud Mining:

In proof-of-work (PoW) systems like Bitcoin, mining involves using computer power to solve complex mathematical problems and earn cryptocurrency. Cloud mining is a variation where individuals pay to rent mining hardware located in remote data centers.


Running a masternode involves maintaining a full node or a wallet of a particular cryptocurrency with a significant minimum number of coins. Masternodes typically require a substantial upfront investment and technical knowledge but offer a return in the form of a share of the block rewards.

Each of these methods has its own risk and return profile, and the suitability varies based on individual preferences and the size of the investment. It's essential for investors, especially those new to the space, to conduct thorough research and possibly seek financial advice before engaging in these activities.

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What is Staking? What You NEED to Know!
Staking is akin to depositing money in a savings account, where the bank borrows your funds and pays you interest in return. Staking involves participating in network operations such as transaction validation on a proof-of-stake (PoS) blockchain.
What is Cloud Mining? | Blockchain Terms & Definitions
Cloud mining is a process that allows individuals to participate in cryptocurrency mining without the need to purchase and maintain mining hardware.
What is Yield Farming? What Investors Need to Know
Yield farming is a method to earn passive income by offering liquidity to the market in return for a percentage of the trade.
What are Masternodes?
Masternodes are specialized nodes in a blockchain network that have specific functions and perform specific tasks in exchange for cryptocurrency rewards.