7 Best Ways To Earn Passive Income On Cryptocurrencies in 2022

• Is your active income stream not proving to be sufficient?
• Do you want to indulge in a passive income stream?
• Do you want to get rich in a short time?

If your answer is YES to all the above questions, you have come to the right spot.

Here, we will discuss how you can earn passive income on cryptocurrencies. 

You may already know that the Crypto boom has changed the market dynamics. With so many countries accepting these currencies as their legal tenders, things are looking good for the Crypto investors this year.

So, let’s focus on the best ways to earn a passive income from these currencies right here: 

1: Crypto Staking

Crypto Staking is the purest form of generating passive income on Cryptocurrencies. It enables distributed network participants to come to an agreement for new data being added to the Blockchain. 

Unlike the ‘proof of work’ system where the miners receive the new block rewards, in this ‘proof of stake’ system, the validators receive the rewards.

Validators find it more cost-efficient than the role of Crypto miners because they don’t need to buy any costly hardware to do the job. 

The value of the token being staked can increase over time, so how many tokens you’re staking decides your earnings.

The best Crypto Staking platforms are:

• Gemini.
• Kraken.
• Crypto.com.
• Coinbase.
• FTX.

2: Crypto Savings Account

These are the safest options to earn passive income on Cryptocurrencies. When you open a Crypto savings account, you get to earn a return on your Crypto deposits. 

The rate of return is pretty high in these kinds of savings accounts, but your Annual Percentage Yield will depend on how flexible or fixed your terms are.

To be precise, you will only earn a handsome income from Crypto savings accounts if you’re in it for the long term. 

The best Crypto Savings Accounts are:

• Aqru.
• Crypto.com.
• Blockfi.
• Binance.
• Coinbase.

3: Crypto Lending

If you don’t want your Crypto assets to sit idly, Crypto lending is a good way of generating passive income on Cryptocurrencies.

Since you provide liquidity to other Crypto users, you will be earning a profit off their earnings. A Defi platform will act as the intermediary here, where your loan will be paid off to you with interest.

The interest rate depends on how demanding the coins you are lending are, and how much you’re lending at once, just like credit cards. The regular yield amount can vary from 3%-8%, whereas for stablecoins, the amount is 10%-18%. 

The best Crypto Lending platforms are:

• CoinRabbit.
• SpectroCoin.
• Nebeus.
• Blockfi.
• Celsius.
• AAVE.

4: Dividend-Earning Tokens

Many Crypto companies offer dividends to their shareholders as a gratitude for their contribution to the development of their business.

They offer dividends in the form of Crypto tokens, and these tokens usually have multiple functionalities. They can act as rewards for the profit of the company. Once the user gets it, he can reinvest it, hoping its price will increase.

There are many companies that offer a better dividend portion than some others. So choose the platform carefully, and break your financial slump.

The best Crypto Dividend programs are:

• Kucoin.
• FTX.
• BitMax.
• Decred.
• Ontology.
• Reddcoin. 

5: Yield Farming

With the rise of Smart Contracts and Decentralized Exchanges, yield farming will become popular in 2021. It is nothing but the Crypto users contributing to the financial liquidity of the protocol.

There are many trading platforms that enable users to rely on self-programmable computer contracts. In return, investors can get the liquidity amount they deem suitable.

Here, users do not trade with any third-party brokers, but they trade with funds that users have deposited on the liquidity pools. 

The interest rate depends on multiple factors, but one has to consider the market volatility before selecting a price point here.

The best Yield Farming platforms are:

• Aqru.
• Defi Swap.
• e Toro.
• Crypto.com.
• Blockfi.
• Coinbase. 

6: Affiliate Programs

The best part of this income generation platform is it is free. The setup procedure is easy, and the time you commit on this platform is less. 

There are many Crypto exchange platforms that pay you money when you recommend others to join that platform. 

When you create an account, you’ll be given a unique link. You can share the link on any social media, and when someone uses that link to join the platform, you receive a commission.

You have to put in the effort to advertise the link properly on all your social media accounts, and you can reap the benefits for years afterward. 

The best Crypto Affiliate programs are:

• Binance.
• Paxful.
• Coinbase.
• CoinMama.
• Changelly.
• Local Bitcoins.

7: Cloud Mining

When you put cloud mining to use, you purchase the hash power. Thus you pay for the hash rate you select at the beginning and what is left in the end goes to the miners.

Hosted Mining is a well-known form of cloud mining. 

You get to purchase the mining hardware at the mining location from the maintenance committee, who ensure that the equipment will work. These are a bunch of IT employees who take care of these equipment. 

Thus, customers have direct control over their Cryptocurrencies. 

The best Cloud Mining platforms are:

• ChickenFast.
• BeMine.
• StormGain.
• ECOS.
• Scryptcube.

Final Note

There you go.

We have illustrated the 7 best ways to earn passive income on Cryptocurrencies right here at your fingertips.

We urge you to go back to the post once again and see how each of these strategies works to find out which one will work the best for you.

For further questions, reach us in the comment box.