Are you dreaming of getting rich? Would you like to wake up in the morning knowing that you have made money while you were asleep? Is the dream to be able to live from the interest you get based on your investments? There are endless opportunities, but not all of them are good, and they all come with a big risk. In this article, I would like to write about five platforms that are great for passive income. However, I do warn you already, you should only invest money that you can afford to lose, and this is not financial advice!
Defi, also known as Decentralized Finance, is one of the most popular words in the world of cryptocurrencies today. It is about dealing with money without involving a third party (a bank), and it is about enjoying the benefits of a bank and both getting paid interest and borrowing money, without dealing through a third party.
When you read about investment opportunities in the world of cryptocurrencies, you will be able to read about projects offering APY (Annual Percentage Yield) from everywhere between 0,5% to 15,000%. Which ones should you choose? Are they all safe?
It is important to understand that even though a project has a high interest doesn’t make it good. That is why you should always do further research on your own, and it is important to only use money that you can afford to lose. It is also important to remember that you need patience, because you will not get rich overnight. Many projects operate with compounding interest, meaning that what you earn on day one is added to what you have already invested, and thus the investment and the interest will grow proportionally the longer you keep the investment rolling.
But, enough text for now. Let us take a look at five projects and platforms that will give you great opportunities for passive income.
Five cryptocurrency platforms for generating passive income
1. The easiest platform – NEXO
The easiest platform, and maybe the safest platform, for generating a passive income is the platform named Nexo. This is something that reminds us of a bank because it is first of all about earning and interest with your funds at the platform, or using your funds as collateral as you ask for a crypto loan. In other words, you can deposit money to the platform and use it to get a crypto loan, or you can deposit money to the platform and receive a steady interest on a daily basis.
This might not give you the revolutionary interest rates that will make you rich overnight, but compared to normal banks in which you often receive an interest rate of 1%, the interest rates moving between 4% and 12% should sound really nice. It is also very easy to use, making it a low-barrier platform to maneuver.
You can deposit actual USD, GBP, and Euro to the platform to receive an interest in those currencies, or you can deposit popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Polkadot, Cardano, or stablecoins such as DAI, USDT, USDC, and receive an interest in those currencies. This is one of the easiest options if you want to generate a moderate passive income with your money or cryptocurrencies.
Click the link above to visit the Nexo website and to give it a try.
2. Set up a blockchain node with StrongBlock
This might sound terribly hard, but it isn’t. StrongBlock is a platform that is creating blockchain nodes for different projects. Currently, they run approximately 90,000 Ethereum nodes, and they are also working with Cosmos, Polygon, Sentinel, and even more platforms. How can this help you?
If you visit www.strongblock.com, you can easily purchase Strong tokens. When you have bought your tokens, you can use them for so-called mining, which is currently giving you an interest rate of 50% per year. If you add 100 Strong tokens to the pool and leave them there for a year, you should have somewhere around 150 tokens one year later!
You can also set up a blockchain node using the super-easy service provided by StrongBlock. At the moment, the price for setting up a node is 10 Strong. You will also have to pay a monthly fee to run the node ($15 per month). At the moment, you earn approximately 0,1 Strong token per day with your node, meaning that one node should turn into something like 30-35 tokens within one year. If you further use your earned Strong tokens to create even more nodes later, the math can become very interesting.
In order to do this, you need to have a MetaMask wallet installed in your browser, some Ethereum to pay for the gas fees, and I would also recommend that you read the following article I wrote recently dealing with whether or not StrongBlock is one of the best cryptocurrency investments in 2021.
StrongBlock also has NFT collections. These are not about cute cats or robots, but instead, a StrongBlock NFT will boost your node rewards, meaning that you will receive a higher daily return with your nodes. In other words, they are not only pretty, they are also very useful!
3. Penguin Finance – lots of investment opportunities on the Avalanche blockchain
The Avalanche blockchain is similar to other popular blockchains such as Ethereum, Cardano, Polkadot, and Bitcoin. It is getting more and more popular, and the transactions are very cheap and very fast. There are lots of investment opportunities for those who want to generate passive income, and Penguin Finance might be the best place for passive income on the Avalanche blockchain at the moment.
The token of Penguin Finance is PEFI. You can buy Pefi on popular decentralized exchanges on the Avalanche blockchain like Pangolin and TraderJoe. You can later add your PEFI tokens to the so-called NEST. There is currently an APY of almost 200% for staked PEFI tokens on the platform.
To use Penguin Finance, I recommend that you have a MetaMask wallet installed in your browser, and you need to purchase some AVAX tokens and send them to your Avalanche wallet address to get started on the platform. A very easy and nice place to buy AVAX tokens is on the very popular cryptocurrency exchange named Binance.
If you want to generate even more passive income and with a higher APY, take a look at the so-called FARMS at the Penguin Finance website.
There is risk involved, and the most important thing to consider is whether you believe that Penguin Finance is a platform that will stay around for a long time or not. If you trust the platform and the token, this is a great investment opportunity. To enjoy the APY coming with the farms, you will need to purchase two sets of tokens (for example PEFI and AVAX). You can then add them to the liquidity pools at either Pangolin or TraderJoe. This will automatically create an income as you receive a tiny percentage of the fees generated with that given trading pair at that exchange. But, the biggest portion will come as you use your liquidity pool tokens and add them to the FARMS at the Penguin Finance website. As you can see from the picture above, the annual return often varies between 200% and 500%.
4. OlympusDAO – one of the highest APY’s on the market
This is not a project for those very suspicious and it is not a project for those who fear their money. But, if you are willing to take a risk, then this might come out as one of the most fruitful investments you have ever made. When I first read about the project, it was running with an APY of 15,000%. Currently, the interest rate is somewhere around 7000% and it is based on the fact that you automatically make the interest a part of your investment. In other words, three times a day your interest is added to the number of tokens that you initially bought, and thus, the interest you receive will become higher and higher every single day, and so will your stack of OHM tokens.
With time, this will cause big inflation of tokens, and it is expected that the price of the OHM token will decrease over time. But, it is also important to notice that even though the price should go from $450 to $150 (which would be a big fall), you will still be in profit if you have 5 times more tokens than what you initially bought. This is important to take into consideration!
We don’t know much about the names of the actual team behind the project, but the community is very active and positive, and the team behind OHM is often active on Discord and on other platforms. If you have questions, you will most likely receive an answer quickly if you ask someone from the team or from the OHM community.
OlympusDAO is currently running on the Ethereum network. You will need a MetaMask wallet or another wallet supporting WalletConnect to get started with OHM. You will need to have Ethereum in your wallet to pay for the transaction fees. The most popular place to buy OHM tokens is the OHM-DAI trading pair on SushiSwap.
I have earlier written more about OlympusDAO here in the IP Address Guide. If you want to take a closer look at the article, click the link.
I clearly see that this is what can be considered a risky project. But, if it actually works and progresses as planned, this will give you a fantastic passive income in the coming months and years.
At the time of writing this article, the price of one OHM token is $460.
5. Enjoy interest rates up to 20% on Kraken
I had several suggestions for which platform to feature as number five for those who want to generate passive income through and with cryptocurrencies. I was thinking about the blogging platforms Steem and Hive, but as those require you to actually do some work (voting for other posts or writing posts), I decided not to write about those. Instead, I would like to mention the popular and very safe cryptocurrency exchange named Kraken. This is a very basic exchange, and it is very easy to use. Here you can transfer money from your normal bank account to the platform, and you can then buy other cryptocurrencies directly on the platform.
When you have bought the cryptocurrencies that you like, then you can click the “EARN” option on the Kraken website. You will then be able to lock your tokens up for as long as you like (you can terminate it whenever you want to without paying any additional fee) and the interest is paid to you several times a week (depending on which cryptocurrencies you decide to stake).
Currently, you can receive an interest of 20% with your KAVA tokens, and if you add Polkadot (DOT) tokens, you can receive an interest of 12% per year. The picture above gives you a little example of what kind of interest rates you can expect as you add funds to Kraken to generate passive income in the coming days, months, and years.
Are you ready for passive income?
I have mentioned several options for generating passive income in this article. You do not have to invest in all of them, in fact, you do not have to invest in any of them. But, these are all projects that I believe it might be worth taking a closer look at. Please do your own research and only invest money that you can afford to lose.
I hope you will be successful as you conquer the world of cryptocurrencies and of passive income. Do not forget that there are hundreds of other projects that can help you generate passive income as well, so make sure to look around in order to find a platform suitable for you.
If you have further insight, comments, or maybe suggestions for other platforms that I should feature in future articles, please use the comment field below and let me know about it!