I find it really satisfying to set a passive-income goal in the future (for example $4000 a month only from crypto staking, lending, trading). I have been using some of these services to increase my holdings with compound interest.
Even if you have a small portfolio you should definitely start. Magic of compound interest + appreciating asset price will help you reach your own goal a lot quicker and with a lower amount of capital than if you were to ignore it.
The best part is that you're usually earning it in kind, so even if the current USD value seems insignificant, I suppose you're not invested in anything you don't expect will increase in value, so every dollar this week will hopefully be worth way more. Just a nice passive DCA basically.
- How to earn a yield on Bitcoin:
| Blockfi | Crypto.com | Celsius Network/Voyager | Ledn.io | Nexo.io | Swissborg |
|---|---|---|---|---|---|
| 5% | 1.5% | 6% | 6.1% | 4% | 3% |
- All of these services are extremely reputable and work with and are backed by solid companies
- How to earn a yield on Ethereum:
| Blockfi | Crypto.com | Celsius Network/Voyager | Ledn.io | Nexo.io | Swissborg |
|---|---|---|---|---|---|
| 4.5% | 2.5% | 5.05% | - | 4% | 3.5% |
- The best way right now is to partake in ETH2 staking APY is currently between 6-8%. If you have less than 32 ETH you should stake it on a reputable exchange like Kraken and Binance.
- Another way is to do it is via rocket pool when it launches
Important: ETH 2 rewards will be locked till ETH2 hard launches. But you can still trade back your locked eth to normal eth by the respective pairs on the exchange
- How to earn a yield on stable coin:
| Blockfi | Crypto.com | Celsius Network/Voyager | Ledn.io | Nexo.io | Swissborg |
|---|---|---|---|---|---|
| 9.3% | 6% | 10% | 12.5% | 8% | 7.25% |
- You could use the services mentioned above or you can dip your toes in DEFI lending like Anchor protocol (over 20% APY on UST !), Compound protocol.
- Liquidity providing is also a good option but you have to worry about slippage high, gas fees and impermanent loss. So I would only suggest LPing if you are more experienced.
- Earning yield on other coins:
Some coins can be staked in your wallet custodially. Some can be staked on exchanges like Kraken and Binance. Please do not miss out on these rewards, they compound and will help you reach financial freedom quicker.
Note: some of the services I mentioned above are non-custodial. The "not your keys not your crypto" comes to mind. But I feel that the reward we are compensated for FAR outweighs the non-custodial aspect of the services.
Some questions I got:
Q: What is the better way, staking through a wallet or through a DEX?
A: Depends on what's easier for you personally. DEX has higher rates but more complicated to set up. CEFI is easier and just deposit and forget about it but fewer rates and centralized. It's up to you!
Q: How much do you think you will need to have invested for a return of 4k a month?
A: Depends on what coin you earning interest on. If it's a stable coin Around 400000 dollars If it is in Bitcoin it would be more like 1 million dollars worth.
Q: What is binance savings?
A: It is flexible savings on Binance, which supports a couple of dozens of coins, and takes seconds to activate.
I hope you find the guide helpful!
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