Passive Crypto Income: Secrets They Don’t Want You to Know!

if you have crypto Gathering dust in your wallet I've got news for you you could be missing out on some serious gains I'm talking about using your crypto to earn more crypto and news flash this is how people get rich you think people get rich from working a 9 to-5 of course not one of the only ways regular folks like us can make it is to use your money to make more money and compounding that over years probably many many years but that's okay because you're planning for your entire life that's why today we're dropping all the

knowledge you need to earn passive income from crypto so strap in and let's get started now passive income in crypto generally means earning yield this is usually expressed as an annualized percentage or apy now there are some really eye popping yields out there in crypto if you go on to the yields page of defi Lama you can even find cryptos paying out more than wait 12,000 oh my God I can't believe it Bros I finally made it it's been nice knowing you but I have to go shopping for a private island immediately tooo of

course I'm kidding this is ridiculous and you should never click on anything like it where do I even start okay in crypto high yields are often paid for by inflation that means you are not earning something of value say fees or interest paid by borrowers instead said the project is just printing tokens out of thin air to give you this is why real yield is so important the yield you earn in excess of inflation is real yield and this is the only yield that matters whatever kind of apy you're looking at the first question you should ask is

what is the real yield here so for example let's look at the yield from staking atom we're on staking rewards.com here by the way we have no affiliation with staking rewards but this site is a very useful resource for all things staking now here we can see that atom has a staking rewards Benchmark of 17.

91% this is the mean reward offered across all Cosmos validators that is a pretty juicy yield for an established Blue Chip crypto like atom but what is the real yield well if you scroll down you'll find the inflation rate which is 12% so the yield you're getting is nowhere near 17.91% it's a little under 6% now that's not necessarily bad but 12% inflation is kind of a lot maybe that's why atom is At a 4-year low right now and this brings me to a related point the APR you get is meaningless if the crypto is looking bearish on a high time frame do you want to earn a yield

on something that's tanking the bottom line is you want to earn real yield on a strong asset that people want to hold so whatever passive income strategy you prefer you have to balance the yield you get with the prospects of the asset performing well these things are often inversely correlated so if something is paying 12,000 apy it's safe to say that nobody wants it and it's not worth your time now with that out of the way it's time to look at the strategies you can use to make your crypto work for you let's start with the obvious staking

there are many proof of stake cryptos out there but we'll take eth as an example there are several routes to staking your eth but unless you have the 32 eth required to become a validator on the ethereum network yourself your options all involve giving your eth to another validator who will stake it on your behalf you may have seen staking services offered by centralized exchanges or mobile wallets that allow you to stake in app in the former case The Exchange will often be running its own ethereum validator in the latter the

wallet is just providing you with an interface to send eth to thirdparty validators you're likely to get the same yield from either of these options but since that's the case we suggest not staking via exchanges because it's not great for the blockchain in the ethereum foundation's words quote centralized providers consolidate large pools of eth to run large numbers of validators this can be dangerous for the network and its users as it creates a large centralized Target and point of failure making the network more vulnerable to attack or

bugs this is also true for another kind of staking that is extremely popular liquid staking if you're not familiar liquid staking Services provide you with a tokenized representation of your staked asset whose value is pegged one to one to that asset this liquid staking token is basically a receipt for your staked asset and when you unstake it will be burned for the user liquid staking means you earn compounding interest on an asset that is both in your custody and free to use in other transactions if you've ever dipped your

toes into defi you'll have seen some exotic tickers that look like eth but with various prefixes and hyphens many of these will be liquid staking tokens which are a huge part of the defi ecosystem among these the most common and easy to read is stth which is the liquid staking token issued when you stake eth with Lio