so yesterday I attended a crypto meetup and a guy actually asked me if i can list the project on the
main page of coin market cap for ten thousand dollars first of all only ten thousand dollars
that's insulting and second of all talk about easy money actually that's exactly what we're talking
about today seven ways to generate passive income with crypto are you tired of constantly keeping
track of your portfolio trading and managing positions wouldn't it be better to sit back
relax and have the opportunity to earn passive income without all the headache that comes with
staying on top of the market 24 7. fortunately there are now dozens of ways to do just that
by leveraging your cryptocurrencies to generate returns in the background freeing up your time for
more important matters like watching more of our videos what's going on guys it's Trevor max main
and here at coin market cap we are on a mission to make crypto accessible all around the world that's
why we love making videos for you that are packed with information and easy to understand and simple
to share with your friends and family so if you want something more than just hype and to actually
learn about crypto make sure to hit the subscribe button right now and turn on post notifications so
you're not going to miss out on a new video so let's learn together so the first point on our
list is to automate your savings much like regular currencies can earn interest while being held in
a savings account cryptocurrencies can also be deposited to various platforms to earn a yield
some of these are centralized cryptocurrency savings accounts like those offered by nexo
blockfi and crypto.com these generally use your funds to provide over-collateralized loans to
institutional borrowers likewise many exchanges including both binance and huobi allow users to
earn a yield on their cryptocurrency deposits others are decentralized savings platforms like
orion money and anchor which allow you to earn interest on your stablecoin deposits
as well as urine finance and autofarm which automatically move your funds between a range
of d5 products to maximize the yield that you earn these are arguably the simplest and most
straightforward ways to earn a passive yield on your cryptocurrency deposits since they require
little to no in-depth knowledge to get started so how much can you earn well this depends on
the asset that you stake and the platform that you choose it's usually possible to earn around
a five to twenty percent epy so what is there to watch out for well be wary of these platforms
offering suspiciously high yields these could turn out to be ponzi schemes and that brings us to
number two which is to become a liquidity provider decentralized exchanges revolutionize the way that
traders access and capitalize on opportunities in the market by providing a permissionless source of
liquidity for a wide variety of cryptocurrencies but a specific type of dex known as an automated
market maker also unlocked an entirely new way for cryptocurrency holders to generate a yield on
their assets by becoming liquidity providers these platforms offer decentralized liquidity pools
that allow users to trade while simultaneously facilitating efficient price discovery by simply
using the weighting of the two or more assets held in a pool to determine each of their values such
that a pool containing 100 each and 400 000 usdc would price each eath at four thousand dollars
and each usdc adds 0.00025 each liquidity is generally contributed by the community who always
maintain their proportionate share of the pool regardless of how much liquidity is added this
liquidity is then used to serve traders executing swaps using this pool but here is where it gets
interesting when a trader sources liquidity from the pool they pay a trading fee usually around 0.2
to 0.3 percent of the trade size this is split between all liquidity providers including you a
huge number of amms now exist and most major smart contract platforms now have one or more suitable
options and some of the most popular ones out right now include uniswap pancake swap pangolin
weight you swap and sushi swap so how much can you earn well the amount that you earn
can vary considerably between pools and platforms generally the higher your fraction of the overall
liquidity and the more trading volume your pool sees the more you're gonna earn yields can range
from almost nothing to potentially well over a hundred percent apy so what is there to watch
out for well if you're providing liquidity for volatile assets then you will absolutely need
to understand impermanent losses if you don't know what impermanent losses are make sure to ask alex
in the description below so right now we're still warming up into our list there are still four ways
to generate passive income so make sure to stay and watch until the end so that brings us to the
third point which is participating in a yield farm if you're providing liquidity then yield
farms provide a way to earn additional yield on your assets as their name suggests yield farms
are platforms that allow you to farm for assets in one or more ways most commonly you will need
to stake your pre-existing liquidity provider lp tokens to a specific farm to earn a fraction of
its reward pool by staking your tokens to the yield pool you will receive a proportionate
fraction of the rewards it pays out each day week month etc such that if you contribute
one percent of the pool you will generally receive one percent of the rewards that it offers
many amms including pancake swap trader joe and sushi swap have built-in yield farms while some
are standalone products such as venus these yield farms generally allow you to earn your yields in
a newly released cryptocurrency or the yields farm's native utility slash governance token
so for example you can farm cake on pancake swap or wag on wagyu swap most of these platforms will
display an expected apy based on the current value of the reward token and the size of your stake but
this can of course fluctuate over time so how much can you earn yield farms generally pay in volatile
cryptocurrencies if this cryptocurrency collapses in value then the average apy can be relatively
low whereas if it appreciates in value then it can be relatively high in general expect around
a five to twenty percent apy if you liquidate your yields frequently so what to watch out for
well many yield farms initially offer incredibly high yields but this quickly drops when the total
value staked increases and if the reward token crashes in value be sure to check your estimated
yields regularly to stay on top of this and that brings us to the fourth point which is
staking your cryptocurrencies proof of stake or pos not only introduced a more efficient way to
maintain consensus in a decentralized system but also brings with it a new way for coin holders
to earn a yield through staking depending on the cryptocurrency and whether it uses a simple pos
nominated proof of stake delegated proof of stake or some other variant staking could require
setting up a validator node and locking up a fixed minimum number of coins to participate in securing
or powering the network or delegating your coins to a selected nominator or validator in either
case stakers earn a yield that is usually derived from the inflation of the staked cryptocurrency
and or the transaction fees generated by the network a huge number of cryptocurrencies
now offer stake in rewards including the likes of ethereum via the beacon chain
solana cardano avalanche terra and polkadot and some of these enforce a fixed minimum stake and
a lockup period which can pose as barriers to some users nonetheless once staked the yields generated
are generally completely passive requiring little to no oversight or intervention nonetheless you
may want to liquidate your yield regularly to buffer against price volatility or hold your
coins long term if you believe that they will appreciate in value so how much can you earn
the yield that you will usually get depends on a few things including the proportion of the supply
that is staked and any commissions you might lose in general you can expect around a 5 to 15
apy so what is there to watch out for well staking yields are paid out in the same coin that you will
stake so for example stake dot yields more dot and if the value of the coin you stake falls there is
a chance that you could end up net negative in fiat terms if the staking rewards do not cover
the losses and that brings us to the fifth point which is to join a guild if you've jumped on the
recent hype surrounding play to earn games then you may have found out that playing these games
and making use of your in-game assets and nfts can be a time consuming process after all you actually
need to play these games in order to benefit from the earning part of the equation but thanks to the
advent of guilds this doesn't necessarily need to be the case these are platforms that allow play to
earn investors and players to work together for their mutual benefit generally investors supply
the funds and assets while players securely leverage these assets to generate a yield
and this yield is then split between investors and players and often between other intermediaries
such as managers who create documentation and training materials for players generally known
as scholars some of these platforms allow nft holders to pull their assets together as part of
the guild whereas others allow direct peer-to-peer nft lending between nft holders and borrowers in
return for an agreed fee a wide variety of guilds are now operating in clyde gg good games guild
ggg and merit circle each of these differs in the way that they work and the amount of manual input
required but often makes earning a yield far more efficient than manually playing supported games
the amount that you can earn varies based on the guild the specific play to earn games it supports
and the skills of the players however you can expect to earn around a 20 to 40 percent of what
you could earn playing the game yourself albeit without actually doing so so what to watch out for
well not all blockchain gaming guilds are created equal be sure to do your own due diligence before
handing over your funds or assets to any guild and that brings us to the next point which is joining
a crypto fund as you've probably noticed by now most passive income streams will require some
initial labor and periodic maintenance whether that be depositing your assets to a liquidity pool
operating a validator node or participating in a guild crypto funds are actually an exception since
they are truly passive much like traditional hedge funds can be used to put your fiat capital to work
crypto funds allow you to generate revenue using your digital assets and oftentimes fiat currency
too these can be relatively simple funds like greyscale's single asset investment products
such as its bitcoin trust or decentralized trusts these allow fiat investors to gain exposure to
the price action of a single cryptocurrency other funds like pantera capital offer more
complex investment products such as the pantera blockchain fund which provides exposure to a
wide range of crypto markets including venture equity liquid tokens and more that said these
funds generally have a few barriers to entry which can include a large minimum investment
for example from a hundred thousand dollars to a million dollars and accredited status likewise
they can vary considerably in the fees they charge ranging from very reasonable to almost ludicrous
so how much can you earn well each crypto fund will generally provide a detailed overview of
their past performance and quote specific metrics like their internal rate of return which can be
used to estimate your returns so what is there to watch out for well not all funds perform well
and others have unusual terms and conditions we recommend scrutinizing any documentation
before handing over any money paying particular attention to the notice period for redemptions
which can be lengthy and that brings us to our last point which is hold yield bearing tokens
last on our list are dividend yielding or yield bearing token as their name suggests these are
tokens that entitle holders to a share of the profits generated by the underlying
issuer which are basically the equivalent of dividend yield stocks in the stock market
a wide variety of dividend yielding tokens now exist and each operates in a slightly different
way some of the most popular dividend yielding tokens include kucoin shares and ascendx both of
which pay a fraction of their trading fee revenue to token holders as well as nexo which entitles
the holder to a fraction of its profits in some cases simply holding these tokens is enough to
qualify for dividends which are then distributed periodically to each holder's wallet as an airdrop
whereas in other cases you may need to sign up to the issuing platform and complete kyc verification
to claim your yields the returns these tokens provide are strongly related to the performance
of the underlying platforms which means your yields can vary over time so how much can you
earn yields can differ considerably between yield bearing tokens but in general you can expect
around a five to ten percent apy from some of the most popular options so what to watch out for
well the amount that you can earn can increase or decrease based on the profits of the token
issuer likewise dividend yielding tokens are often volatile we recommend keeping track of your entry
price and dividend payments to keep tabs on your overall apy so that's it for today's seven ways to
generate passive income with crypto we hope that you learned something valuable from today's coin
market cap episode and if you did make sure to share this video with a friend or family member