How do you use BTC to generate passive income like ERC20 tokens?

[ken1153]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

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[mk4]

Platforms like BlockFi and Celsius Network gives a certain percentage of interest when you borrow them your coins. While I'm not necessarily against such platforms, if you were to use one, take note of the risk: you're entrusting your funds to a centralized entity.

[Chris!]

Earning 100% interest on a shitcoin that drops by 50% means you didn't actually earn anything.

How do I earn passive income? Hodl and sell if I desperately need to.

[Wind_FURY]

OP, there's a lending subforum in Bitcointalk, https://bitcointalk.org/index.php?board=65.0

I believe one day the Lightning Network's path to efficiency will find services be developed that would "stake your coins" placed in payment channels.

[ranochigo]

Lending Bitcoin is really not the ideal method to earn Bitcoins. The nature of Bitcoin means that it is not recognized as a currency across many different countries.  If a borrower were to default, there is little legal means to get it back.

Passive income in Bitcoin is generally accompanied by substantial risks. 

[pakhitheboss]

First of all Holding Bitcoin itself for the long term will earn you a high-interest rate if everything goes well Bitcoin will reach a new ATH in just a couple of years.

Still, if you want to earn more then you can use your Bitcoin for lending on platforms like Blockfi and Binance exchange. There are couple of Defi wallets that also provide interest on Bitcoin for example crypto.com wallet.

[thesmallgod]

Passive income? I will like you to elaborate on this and maybe give an example of how ERC20 token that are known to be generally more volatile can earn you passive income through staking or any of the other methods you have mentioned. The last time I checked, when the market started bleeding, some of these altcoins prices even drop as low as 50% so automatically you must have earned a particular token but the price will be justified by the present market price. I personally do not think you can generate passive income with crypto due to market volatility

[nelson4lov]

As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others.  

Sadly, there's currently no way to generate passive income with Bitcoin while maintaining custodial of your assets. The only way to to get income from just holding your bitcoin would involve keeping it with a centralized entity.  If you do consider, you can check out either Crypto.com 's Earn platform or Binance Savings platform. They're offering as much as >= 10% for saving your bitcoin with them and both platforms have a good track record of safeguarding user's assets.

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Staking isn't limited to only ERC20 tokens, You can also participate using stablecoins like Binance USD or USD tether.

[pooya87]

can you earn passive income by hiding USD under your mattress at home?

that's what bitcoin is, it is a currency just like USD but decentralized and transparent without the government corruption. you can only earn it just like you earn any other fiat.

[NeuroticFish]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

Yes, other coins have DeFi, LPoS and such. Bitcoin doesn't have this.
You can risk exchanging your Bitcoin into other coins - possibly better rewards, possibly those coins will become worthless in months - or stick with your Bitcoin, keep it safe and watch it grow over the years.
It's your choice really, but keep in mind that "A bird in the hand is worth two in the bush."

[davis196]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

There's no such thing as "passive income".Investing your capital and waiting for interest/dividends/profit is NOT passive income.This is simply lending your capital to other businesses that are generating active income.
Shitcoins/tokens can't generate passive income.Most of them are scams,ponzi schemes and digital garbage.

[hatshepsut93]

So far the only thing close to passive income in Bitcoin's ecosystem is investing in casino bankrolls. Of course it means that you entrust your coins to a third party, which means a lot of potential risks, and the investment itself can flop if you get really unlucky and gamblers win a lot, but the math is on your side, and in the long term you can expect profit.

But I have a question, if you're jealous of shitcoin earnings, are you also jealous of people who have bank deposits or put their money in saving funds? There's not much difference between the two, even if alts advertise that they allow you to keep custody, there's still a lot of risks. Hacking, for example - these DeFis are so prone to it.

[mk4]

There's no such thing as "passive income".Investing your capital and waiting for interest/dividends/profit is NOT passive income.This is simply lending your capital to other businesses that are generating active income.

What you described is actually passive income though. Sure, profiting from interest/dividends/appreciation requires money(and risking it too), but it doesn't change the fact that it's technically passive income.

[Rengga Jati]

Even like that, I will still like BTC more than any other cryptos. Income isn't just for passive income and Bitcoin doesn't just provide that kind of income. BTC is more of a coin that has more value and promising for the future. In this case, we can still get profits from BTC as well as by trading, investing, arbitrating, and many others.

Earning 100% interest on a shitcoin that drops by 50% means you didn't actually earn anything.

That's right. And when it has dropped drastically and has no value, we are aware that BTC may be better even it is not considered for passive income type. I like what you think, simply, but it, sell or hold.

[mezzaluna]

Gaining Bitcoin to buy some Alternate Coins can always be beneficial since you can gain Bitcoin in a lot of ways. Though directly gaining ERC20 tokens is much more preferred since all you can do to gain ERC20 tokens by using Bitcoin is by buying them. There are lots of campaigns that hands out ERC20 tokens or Airdrops that give them away for free but when we use Bitcoin to gain Alternate Coins, I guess that is already trading.

[7788bitcoin]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

How you are earning passive income holding ETH and its several shit coins with you. I would like to see some examples where you can hold the coins and make the income. As far as i know there is no way unless you let go off your coins and risk is some risky third party investment. If you really think that these shit coins can give you the income you are looking why waste your time with bitcoin, just convert and hold those shit coins .

[avikz]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

You can't do similar things with bitcoin right at this moment and I don't think it will ever be. However, I see one of my fellow forum member has mentioned about few DeFi platforms like Celsius network and BlockFi. You need to remember that they are centralized business entity and they operate in the same way as banks but at a much smaller scale.

They get money from you as deposit > They lend the money to the market > They earn interest on the money they lend > They pay you back a certain percentage of interest and earn the difference in interest

This is pretty much how these platforms operate. So please understand the risk before your actually go ahead and test those platforms. If you really want to earn through staking, there are loads of coins available in the market and you are free to try those at your own risk.

[semobo]

It is only possible by lending your bitcoin, there are other legit ways to invest bitcoin to get some returns which are gambling bankroll investment which is not going to be high return investment but good to make something while you are holding them and this is not going to be a fixed amount in returns and sometimes you can face losses as well.

[dothebeats]

I just leave them on my wallet and hope for the best. Obviously not always the best idea, but it works. I also looked into btcjam back then, a platform wherein you can lend your bitcoins to someone in exchange of a small % of the initial amount but have weighed that it is risky to do such even though a collateral is necessary before the transaction could take place. Here on this forum, you can lend your coins to, but always ask for a collateral that is a few % higher than what you originally gave the borrower so in case a default happens, you still have something for the trouble and hassle.

[Quidat]

Platforms like BlockFi and Celsius Network gives a certain percentage of interest when you borrow them your coins. While I'm not necessarily against such platforms, if you were to use one, take note of the risk: you're entrusting your funds to a centralized entity.

I would rather choose on holding my own coins rather that getting 4-8% per annum yet you can achieve these gains by just holding up with having that peace of mind that you are holding your own coins than on
letting other use it and be the one who will give out such gain on year to year basis.Im not saying they can be trusted but who knows that one day they would either run nor be hacked.So its still a matter of choice though
if we can accept such risk.When it comes to passive income in BTC then theres no other way just like on what erc20 can do but there are investments that you can actually put your btc so that you do able to earn some
interest ex. gambling house investment etc. but well you know the risk behind.