How to Maximize Your Passive Income from Cryptocurrency

[adaseb]

Lending is extremely risky. Remember what happened in 2022 with all those lending platforms going bust? Even the trustful Gemini had issues with its Gemini Earn because Genesis Couldn’t repay those loans back.

You can lend on defi and provide liquidity but there is risk there also. Look at how many platforms got some bug and everyone’s tokens gets drained. Almost once or twice a month there are millions stolen from some dex platform which had a bug which was over looked.

[DeathAngel]

I have an opinion that you might not want to hear but it’s one that will keep your money safe & massively limit the chances you get scammed. Please don’t stake or lend, there are just too many chances of losing money. We’ve seen many exchange hacks & closures where people lose funds. Your money is safest in cold storage. You can still get a passive income but it’ll be attained by buying & holding crypto over many years then selling some & reinvesting in dividend paying stocks or real estate.

[justdimin]

staking or Lending?

Both of them are not very promising, I have been doing these 2 things for quite a long time but I haven't gotten big profits and the APY offered is relative. However, if you take a large APY, it doesn't necessarily mean that the third party can be trusted. Remember in crypto when you get a staking offer with a high APY it is completely suspicious. So if you want to get passive income, you have to have sources of income from various sectors, not only crypto because of its volatile nature and there is no guarantee that it will be profitable every day. Crypto trading also always has a saturation point, it's better to make sure you have lots of baskets to accommodate the harvest. Lending crypto is actually 50:50, you have to be prepared for the consequences that a third party might take.

I agree with that, too many people think that we are going to end up with something that will get us going, and for that to mean something we need to probably think about something that will look a little differently, and I believe that we are going to end up with some different approach in the end.

I think the best way to go with the current situation would be just realizing that things will not be all that simple. Surely we are talking about a situation where it is going to be tough, but if we can just make sure that we can hold, we could probably make a good profit. Most people look at different stuff, like staking or lending, but the reality is that we are talking about a scenario where long term holding is better than both.

[passwordnow]

Others are telling that holding is already a good passive income, they're right and I agree to them. I won't take the risk of doing it with staking and lending. I have to minimize the risk for every action that I do for this market and with my assets because I don't want to commit the same mistake as what I have done before. Sure, we bought crypto when it was quite low but when it's going up, I knew it that many of us won't be able to afford it anymore and it's going to hit our egos that when it was too cheap, we're not buying a lot of it.

And when it has become expensive, that's when we're going to respond? That's tough. With that, holding becomes a passive income due to the value and price of the crypto that we're holding. As a perfect example with Bitcoin, if you had it last year then you have doubled it already even if the price has been declining currently. That's passive income, right? you've just gained by just doing nothing as well and without nothing to worry about the market anymore. You just have to deal with the current risk but then you'll be sitting and relaxing afterwards when the time has come for it skyrocket.

Holding is only worth it if the currency has rock solid foundation to begin with. Just like bitcoin. But if you happen to venture in other alts, most of them will turn out to be useless as they won't have any value in the trading market if you hold them too long.
And that goes with staking as well. Staking is profitable if the coin you happen to stake is growing in the market. Otherwise, you will end up wasting resources for nothing.  

We can't say what will happen with most of the other altcoins but you know what can come to the unknown ones. Basically, the known ones can have some good fate during the bull run and after that, they're good to be forgotten and as long as you do your decision was able to hit and you made a profit from them. That's why there's uncertainty with most of the altcoins whether you stake or hold them. But if you're all for holding and you have Bitcoin, it's best to hold it.

Staking and lending - will only be profitable if the projects you are venturing with have developmental progress. Because it means, they have the chance to grow its value in the market. Otherwise, those ventures will be a waste as the earned coins or tokens, will  not be worth selling in the trading market.

That's why even if you're enthusiastic with staking, you still need to monitor the coin that you're staking. Because there can be a sudden plunge of the value of it. As long as you're in flexible term and you can sell it asap, you're fine. Don't just be too trusting with the staking at all times because it will give you APY. The current face value of the coin you're holding is also important and that's why you need to monitor it.

[Dr.Bitcoin_Strange]

Well, I have not really handled crypto as my only source of income, but I know that most people are handling crypto investments and other crypto activities as a source of income. I have not tried crypto lending, but I have done staking, and it is quite risky because you will be staking your asset on a centralized exchange or a DEX, which doesn't give you full control over your asset. Most people who are successful with just crypto investment are either big-time traders (spot or features trading) or normal whale investors. Some people who are just spot traders can make a lot of profit from the crypto market frequently because the market is always volatile. Just buy the right coin or token at the right time and sell when you have made some profit. 

[SamReomo]

A staking platform can turn rouge and run away with our full funds while in lending, we may encounter people who won't pay what they borrowed but it can be recovered from the interest on other debtors.

That can surely happen and that's why one should always try their best to select a well reputed platform for staking purpose. I know at a reputed platform we are still not free from risk of losing our funds but its better than non-reputed ones.

In lending when someone runs away with your money then it's quite hard to get that money back and sometimes when you lend someone crypto like Bitcoin and before the repaying period the Bitcoin's value dumps by 10% to 15% like it happened a few days ago then 10% interest won't generate you any profits.

[aylabadia05]

staking or Lending?

Staking and lending are not good options for me to earn passive income from crypto. I prefer holding coins that I believe in by leaving them in my wallet for the long term until the price target is in line with expectations. Staking and lending are very risky than holding coins. The risk of holding for me is different from the risk of both options.

[Oneandpure]

Staking don't give you high return, they might offer 100%+ in the beginning, but they will lower the reward day by day.

Lending could grow a lot money if you can force the borrowers to pay with high interest rates.

If you're looking to make a lot money, you're better off gambling in shitcoins. If at least one coin you bought can rose more than 100,000x, you're already making a lot money.

Staking can't give us high return and risk possibilities with our coins taking drop significant price in the future behind many coin supported staking just offering under 10% APY reward every year.
I think how to get maximize passive income from cryptocurrency by trading exactly how much profitable earn when trading with shit or meme coins. But high profitable always has high risk and shit coins get offer profitable earn more than hundred percentage or some time increasing price raise up to x1000.

Staking and lending seems not really interested for maximizing passive income from cryptocurrency, have bigger risk than profitable earn from two way as passive income in crypto.

[darkangel11]

staking or Lending?

None. IMO both are too risky.
So, I'm a bitcoiner, you can't stake that. To Stake, I'd have to buy ETH, which is already a risk in itself. Then I'd have to stake that on some platform that I don't fully trust just to get a few bycks a month. Even if the income was $100 a month, that's pennies to me. I'd have to get like $5k a month to even consider risking my coins.
Lending? Again too risky if you don't know the person. I'd have to do KYC and I doubt that people would be willing to give me scans of their IDs and selfies so they could borrow a few hundred bucks, or maybe I'm wrong and their privacy is worth less to them.

[Kavelj22]

staking or Lending?

I do not recommend following either option without careful study, although this does not eliminate the degree of risk.

First, I don't understand why anyone would consider Lending as an option to increase profits without having any clear plan for investing it or any way to repay it as a debt. I see some people borrowing to gamble as if they have a strategy free of all risks, while others go into debt for the sake of staking or trading, which is no less dangerous than gambling. Does anyone really believe in the feasibility of Lending in order to achieve the maximum possible profit?

Secondly, what is meant by the concept of staking? Is it cold storage for long-term benefits? As far as I know, this happens on centralized platforms, and therefore the degree of risk is high with the option of storing in a third-party wallet in the long term.

[ginsan]

It depends on where you want to stake, whether it's an exchange or a DEX. If you stake on the exchange it is common to get a small APY but it depends on which coin you choose, if the coin is low then the APY is large but if USDT, BTC, ETH are low APY no more than 3% per year.

Now the way people maximize profits in the new DEX by becoming a liquidity pool staking and then lending they just want to get points hoping for airdrops, now more money goes there what I noticed some new platforms offer a large APY along with points.

When you do that you must know the risk, there is nothing small in this risk but many people dare to do this because there is no fraud in the new DEX if they stake/loan on the new platform.

[CryptopreneurBrainboss]

staking or Lending?

I won't go with lending but I see potential in staking, provided you aren't staking on centralized exchanges or other staking platforms that can be hacked and you lose your staked coins. I see potential in staking but you should be aware of the cons that come with staking because there's no guaranteed that you'll get the value of your staked coins when you unstake before you begin to think about your profits. The rate at which altcoins lose their value is alarming and makes staking not worth it but during the bull market that there are potential for altcoins to increase in value, you can make passive money income from staking.

I don't fancy passive income when it comes to crypto investment but I focus on capital gains which can be realized from buying and hodling. Altcoins aren't coins we should be investing too much for whatever reason unless we're basically doing it for gambling. You can't buy an altcoins and just depend on earnings passively from it because you can lose both your investments and still not gain anything tangible from the passive income investment. Altcoins are vey unpredictable and I don't encourage it to be your dependable source of income but gambling with it is reasonable.

[shinratensei_]

Lending is extremely risky. Remember what happened in 2022 with all those lending platforms going bust? Even the trustful Gemini had issues with its Gemini Earn because Genesis Couldn’t repay those loans back.

You can lend on defi and provide liquidity but there is risk there also. Look at how many platforms got some bug and everyone’s tokens gets drained. Almost once or twice a month there are millions stolen from some dex platform which had a bug which was over looked.

Well honestly anything defi related always has its share of risk, the contract always exposed to the risk of contract breach, but that is also the reason most of defi offers better yield compared to the one provided by centralized entity.
that's why some people just avoid having their money in custody of smart contract because they think the risk outweigh the profit that could be gained.

but at the end of the day for people that are so well versed with smart contract and could somewhat do their own audits and also seeking for additional profit this could be a good opportunity, one thing i noticed though, the platform that always got hacked are the ones that doesn't have sufficient audit and also less known platform.
even then, there will always be risks of contract breach in any smart contract code I guess, especially the one smart contract that function as a vault.

[rodskee]

staking or Lending?

lending is much more work than staking in my opinion

it will depend on the platform and their conditions or how they operate but you are still going to have to interact and learn more about who you are lending your crypto to and it’s a whole lot more contracts to deal with

it will be such a headache if borrowers don’t pay

[avp2306]

staking or Lending?

Why not choose both? If you can able to do it. Since Any one of that in your option doesn't guarantee any passive income to you since But staking would rather give more possible income but can't expect you can get huge from it. But go on big platforms if you want to invest on staking and don't go with not trusted platform offering a to good to be true return.

Also in lending the risk is so high since there are lots of people provably won't pay their obligation and what those people do is to default on their loan then that is bad for your business. But if you can able to ask some valuable collateral  maybe there might be a chance that you can able to earn thru their asset provided.

But as said don't focus about passive earnings since for now its not possible in crypto. Find lots of ways on how you can earn since to many good investment choices you can pick and you just need to familiarize and research to gain knowledge about it.

[Iranus]

staking or Lending?

None. IMO both are too risky.
So, I'm a bitcoiner, you can't stake that. To Stake, I'd have to buy ETH, which is already a risk in itself. Then I'd have to stake that on some platform that I don't fully trust just to get a few bycks a month. Even if the income was $100 a month, that's pennies to me. I'd have to get like $5k a month to even consider risking my coins.
Lending? Again too risky if you don't know the person. I'd have to do KYC and I doubt that people would be willing to give me scans of their IDs and selfies so they could borrow a few hundred bucks, or maybe I'm wrong and their privacy is worth less to them.

In my opinion, there is no such thing as passive income in the cryptocurrency market because it is too risky, the reward we get is not commensurate with the risk we take. We have had many lessons about lending or staking like Celcius, Anchor Protocol...we not only have to face the fact that these platforms can collapse at any time but also have to face fluctuations in market price. Therefore, I have never believed that there is a concept of passive income in this market. We should stop having the illusion that we can both get rich and generate passive income from this market without working. If we want to have passive income, we should invest in traditional assets such as real estate or bank savings.

[maydna]

staking or Lending?

What coins? You can use both staking and lending at the same time and you can do that in the exchange. Many exchanges allow you to staking your coins to gets the rewards for some term. Some exchanges gives you a chance to lending your coins to earn income but you must be selective to choose the coin.

Perhaps you can try to staking at the exchange such as Binance and else so you will see how much rewards you will gets. If you stake BNB at Binance, you will gets a new token/coin as a rewards so you will have more coins in your account.

[Cryptmuster]

staking or Lending?

Staking and lending are not good options for me to earn passive income from crypto. I prefer holding coins that I believe in by leaving them in my wallet for the long term until the price target is in line with expectations. Staking and lending are very risky than holding coins. The risk of holding for me is different from the risk of both options.

Actually, there is no correct answer here, you can stake coins, but if the price falls, then no interest will cover this fall, so I would say that trading can be better than staking, but this is only if you are good at trading. In matters of investing, everything is very individual, you need to take into account the phase of the market, because staking can be good if you buy coins in a bear market, but even in this case, I am convinced that trading can bring much better profits if you are good at trading. Staking often means that your coins will be locked up for several weeks, this will not give you the opportunity to sell if the conditions are favorable for this.

[Wexnident]

staking or Lending?

If we ignore everything else and just consider the profits, it doesn't even matter which, just pick which one gives more returns. It's not like there's a set % return for staking vs lending, it always depends on the project/platform. It's totally up to you and your capability to actually find ones that are worth it and safe.

Though in most cases I'd say lending offers more % compared to staking? You usually need a pretty big amount before staking even becomes worth it otherwise it just returns peanuts to you lol. Lending can net you big but you have to find one in the first place, and it's a natural risk. I wouldn't suggest it unless you have some big amount and by then, returns from staking vs lending would probably be about the same.

[mindrust]

[GUIDE] Best Crypto Investment Opportunities for Passive Income -2024

I have created a guide on making crypto passively a while ago. You might find it useful as there are a few really good options.

Lending is nice but if you are not doing it yourself then you are probably paying a fee to the platform. I haven’t tried it yet myself but I want to do it in the future. Binance must be offering a service like that if I am not wrong.

You can also create a thread on the forum and start your own lending service but then it is not going to be a passive income. It will be another job you’ll have to track. The best part of doing that though, is that you will have the full control over your funds as the other options might get dangerous if they ask for docs/kyc etc