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It's 2022, crypto winter, and we're in the middle of a bear market. The question on every crypto investor's lips is, can I still make good returns on my cryptocurrency investments? And how difficult is the process?
Well, the answer is most definitely, 'yes.' You can make a solid passive income, and you don’t need to make life difficult doing it.
Welcome to the world of staking, yield farming, lending, and mining.
Staking is a way of earning rewards for holding cryptocurrencies, kind of like an interest-bearing savings account. And your crypto earns rewards while staked because the blockchain puts it to work. Cryptocurrencies that allow staking use a "consensus mechanism" called Proof of Stake, which ensures all transactions are verified and secured without a bank, third party, or middleman.
Yield farming is similar to staking as it involves locking up your cryptocurrency investments for some time in exchange for interest or other rewards, including cryptocurrency.
To generate passive income via the yield farming system, you must become a liquidity provider (LP). Typically, the system requires Ethereum and a DeFi token, such as Uniswap or PancakeSwap. You may also need a stablecoin, such as Tether (USDT), to start.
Lending is the process of depositing cryptocurrency that is lent out to borrowers in return for regular interest payments, which compound on a daily, weekly, and monthly basis.
There are two main types of crypto lending platforms: DeFi crypto lenders and centralized crypto lenders. Both offer high-interest rates, sometimes double-digit annual percentage yields (APYs), and more, and both typically require borrowers to deposit collateral to access crypto loans.
Lending can be very profitable but finding the best returns and the most secure platforms is the most time-consuming part; once that's done, you can kick back and relax.
Cloud mining is a hands-off way of earning cryptocurrency by renting computing power from third-party sources. Cloud miners mine crypto coins, for example, bitcoin, by using rented computing power without installing and directly running the hardware and software. There are cloud mining firms that allow people to open an account and remotely participate in the process of cryptocurrency mining for a cost, making it accessible to a wider number of people everywhere.
Cloud miners become participants in a mining pool, where users purchase a certain amount of "hash power." Each participant earns a share of the profits directly related to the amount of hashing power rented.
DEFI INVESTMENT OPPORTUNITIES
The easiest and possibly one of the most cost-effective and profitable ways to generate a passive income is through yield aggregators. The benefits of yield aggregators and farming are pretty straightforward. If you already hold a cryptocurrency long-term, you may as well look to increase the return you can get on those holdings, and staking provides a low-risk way to generate extra returns.
With companies such as Bolide.fi, you can start with any amount and invest in a vast range of staking and farming options while choosing a risk strategy that best suits your risk appetite. Even better, there’s no lock-up period, and you can get APYs of up to 30%!
Here are some of the benefits of investing with Bolide:
- A one-stop investment product with access to leading protocols
- Automated, stablecoin investing produces maximum yields
- Low risk, market-leading yields of up to 30% APY
- Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming
- Start investing with any amount
- Hands-off, passive automated investments using your stablecoins
- No lock-up period access your funds and profits instantly
- No withdrawal limitations
Starting your yield farming and staking journey is easy with platforms like Bolide. Simply visit Bolide.fi, connect your crypto wallet, deposit either $USDT / $USDC / $DAI / $BUSD / BTC or ETH, and you’re good to go.
Start earning interest at the speed of light with Bolide today!
For more information on generating a passive income on your crypt holdings, get in touch with us, today.