Cryptocurrencies are increasingly becoming a part of our everyday lives. More than speculative assets, they are a tool to achieve financial freedom and protect wealth from inflation.
One of the ways to achieve financial freedom is to make money work for you. Fortunately, due to the recent development in DeFi and the overall crypto space, there are now multiple ways to grow your crypto holdings while you sleep.
In order to assist our dear Zenfusians, we decided to compile a small guide to passive income. Our users will learn all of the most profitable ways to generate a source of passive income for themselves by following the instructions below.
1 — Using DeFi Protocols
Savings, as a financial service, may never be the same. Decentralized Finance (DeFi) has changed the game thanks to yield farming. The Compound protocol, which first introduced this concept, kicked off a yield farming craze that led to the DeFi Summer of 2020.
Nowadays, liquidity and lending protocols are commonplace. Decentralized Exchanges (DEXs) offer a great variety of staking options with APYs (Annual Percentage Yield) that overshadow the returns offered by bonds and traditional savings services.
On the Ethereum network, there are now established lending protocols such as Aave, MakerDAO, and decentralized exchanges like Uniswap and SushiSwap. DeFi services, which may be available on certain centralized exchanges, are also expanding on other blockchain ecosystems such as Binance (BSC), Polygon (MATIC), Polkadot (DOT), and Avalanche (AVAX).
2 — Using a crypto bank (CeFi platforms)
Banks have made their way into the crypto sphere and are becoming quite popular. Centralized lending platforms like Nexo, BlockFi, and Crypto.com (CRO) offer excellent APY rates, are incredibly user-friendly, and provide other perks such as crypto debit cards and customer service.
However, the downside of crypto banks compared to DeFi protocols is that you essentially give up control of your funds to the platform. Users will also need to provide personal information under KYC (Know Your Customer) policies.
3 — GameFi and NFTs
Blockchain gaming is seeing immense growth in adoption, according to metrics from Dapp
Radar. Online games can now incorporate NFTs and crypto tokens into their economies by leveraging blockchain and smart contract technology.
Playtoearn is now a new model of gaming, where gamers can invest time and money into their favorite games and generate a return for themselves. NFTs have utility in the game, as items and skins, and can be sold, traded, or leased to other players for a fee.
GameFi is essentially the term that signifies the merger of metaverses and virtual gaming economies with DeFi functionalities. Axie Infinity is one of the most popular GameFi projects at the moment, but upcoming games like Gold Fever and Illuvium are also showing tremendous potential.
4 — Advertisement
Blockchain technology is disrupting several industries, with online marketing being one of them.
In contrast with traditional advertisement, blockchain-based ads actually reward users for time spent watching ads. Browsers like Brave can distribute a portion of ad revenue back to the users and use a more transparent and fair advertisement model.
5 — Learn and earn
Although learn and earn programs can not be considered a passive income source, they are an excellent way to earn crypto while learning more about the industry.
Platforms like Coinbase popularized this concept through Coinbase Earn, where users are rewarded with multiple altcoins for watching videos and solving quizzes.
About Zenfuse
Zenfuse is a powerful all-in-one platform for cryptocurrency traders and investors.
It aggregates multiple cryptocurrency exchanges, allowing control of funds via API, and powers up the trading process, making trading more profitable, simple, and stress-free.
Our cross-platform app provides rich analytics of both your portfolio and order history, giving you the ability to control your funds on a mobile device.
