Crypto Passive Income

12/18/2021

Earn Crypto Passive Income: TOP METHODS Revealed!! by Coin Bureau https://youtu.be/Sqo0pOd4dnI

Video TIMESTAMPS
0:00 Intro
2:12 1 - Centralised Lending Platform
6:37 2 - Defi Lending
10:47 3 - Liquidity Mining
15:15 Sponsor Shoutout
16:29 4 - Staking Coins
20:28 5 - Scams to Avoid
23:14 Conclusion

Screen Capture NOTES from the video

Centralised Lending
These are basically lending services that offer deposits and loans on a centralised platform. Those who deposit their crypto earn interest on those funds

So, it's pretty similar to how it works in a bank account. These services will hold your crypto and lend it out to generate interest. This interest is then paid to you in your account on a daily basis

The main difference here though of course, is that all these crypto loans are heavily collateralised. That means that the amount of funds that borrowers can loan is always less than the value of the crypto

Unlike term deposits in bank accounts, you do not have to tie your crypto up for a certain period of time. With most lending platforms, you have access to your funds anytime

DeFi Lending
Instead of a centralised lending platform matching lenders & borrowers, you have a set of smart contracts. Smart contracts that will adapt interest rates based on the supply & demand

What's important to understand about DeFi is of course the fact that you are in full control of your keys at all times. There are no platforms which can restrict you from earning interest and no KYC

All you need is a Web 3.0 wallet that can connect to these lending dApps and you can start earning interest. These lending contracts accrue interest continuously which means that the impact of compounding is likely to be considerable

Liquidity Mining / Yield Farming
Liquidity mining is the practice of supplying liquidity to a protocol which is then used in order to facilitate the decentralised exchange of different assets

You can supply USDC & ETH to a USDC-ETH pool and you will then get what is termed a 'Liquidity Provider' or LP token.

These tokens then represent your share in the pool These fees vary based on the amount of trading volume that is going through these pools. There is also another thing that you have to consider when supplying liquidity to AMMs like this and that is the threat of impermanent loss

Yield Farming can be quite complicated to engage in. However there are protocols and platforms that allow you to automate it

Staking Crypto
You are staking your coins in order to help maintain the decentralised consensus essential for blockchains to function

The main benefit of staking is that not only are you helping to take part in securing the network, but you are also earning decent returns in-kind of the coin or token you are most bullish on

When it comes to this staking, you have a number of different options. This would depend on whether it was a pure proof of stake or a delegated proof of stake blockchain.

When it comes to staking on these blockchains, there are a number of things you have to consider:

Wallet Support
Staking complexity
Pay out terms
Lockup periods
Staking returns

Celsius: https://celsius.network
DeFi Rate: https://defirate.com
AAVE Liquidity Protocol: https://aave.com
Compoujd Protocol: https://compound.finance
Yearn: https://yearn.finance/#/home
Cardano ADA: Staking and delegating for beginners — A step-by-step guide https://medium.com/cardanorss/staking-for-beginners-a-step-by-step-guide-6dda110b2454
Avalanche: Staking AVAX, by Validating or Delegating, with the Avalanche Wallet https://medium.com/@anotherfawks/staking-avax-by-validating-or-delegating-with-the-avalanche-wallet-f4d9adc182a6
DOT - Polkadot STaking Guide: https://stakingfac.medium.com/polkadot-staking-guide-87f93f45a828
Cosmos / ATOM Delegation Guide https://medium.com/coinmonks/cosmos-atom-staking-guide-4a4e703c998a

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