5 Easy Ways For Crypto Investors To Make Money Without The Need To Trade

The large price hikes and 100x gains are attracting a lot of attention from experts and influencers in the cryptocurrency community as th...


The large price hikes and 100x gains are attracting a lot of attention from experts and influencers in the cryptocurrency community as they offer hope for overnight wealth.

In reality, these opportunities are rare. Not to mention that only a handful of traders actually manage to catch these waves and cash in on time to lock in some life-changing money.

Fortunately, catching a sharp spike in prices is far from the only way for crypto investors to make money, and the recent rise in decentralized finance (DeFi), non-fungible tokens (NFT) and slow adoption of traditional crypto provides a an almost endless flow of investment opportunities.

Let’s take a look at five different ways for crypto holders to easily make money without having to trade.

Staking

Staking, which rewards users for locking tokens on a protocol as collateral for validating transactions, is one of the best ways to generate a return on assets held in a crypto-based wallet.

In August, the Ethereum network will switch from a Proof of Work (PoW) consensus model to a Proof of Stake (POS) model, and Ether (ETH) holders who participate in the Eth2 contract can earn up to 5.83%.

As part of this new PoS system, token holders actively participate in validating transactions by locking their coins in network nodes which then compete for a chance to verify transactions, create new blocks, and receive the coins. accompanying rewards.

Staking Rewards data shows that a bet of 10 Ether currently generates a weekly payout of 0.0075 ETH, worth $ 17.96 at current prices, and an annual payout of 0.3876 ETH, which is currently worth $ 933.69.

Staking rewards calculated for Ether. Source: Staking rewards

The percentage of return for Ether decreases as more tokens are locked into the network, so the final earnings may change.

Currently, the top five crypto assets by value at stake are those of Cardano ADA, Ether, Solana (SOL), USD Coin (USDC) and Polkadot (DOT).

Top 5 crypto assets by value at stake. Source: Staking rewards

All things considered, staking provides one of the best low-risk opportunities in crypto to get a bigger stack regardless of market sentiment or performance, while also helping to support the network through transaction validation.

Lend crypto for low risk returns

The growth of the DeFi industry has led to the development of a diverse crypto lending ecosystem, where users can deposit their cryptocurrencies on various lending protocols in exchange for rewards in the underlying token or in different assets like Bitcoin (BTC), Ether and various altcoins.

Aave is the main lending protocol at the moment and the platform offers yield opportunities for tokens on the Ethereum and Polygon network with its native MATIC coin.

Top 7 Aave credit pools on the Polygon network. Source: Aave

The chart above shows the top seven loan pools available through the AAVE protocol on Polygon and the rewards are paid in Wrapped MATIC (WMATIC) with the current annual deposit rate of return (APY) being 1.92% and a Estimated annual APY of 6.1%.

Other major loan protocols include Curve (CRV), Compound (COMP), MakerDAO (MKR) and Yearn.finance (YFI).

Lending offers another low-risk way to earn a decent return, both in bullish and bearish markets, on tokens that don’t offer user-controlled rewards like staking.

Earn fees and tokens by providing cash

Providing liquidity is one of the main components of a DeFi platform, and investors who choose to provide funds to emerging platforms are often rewarded with a high percentage return on the amount wagered, as well as ‘a percentage of the fees generated by transactions within the pool.

Rewards for ETH-USDC liquidity pool on QuickSwap. Source: Quick Exchange

As shown in the image above, providing liquidity to an Ether / USDC pool on QuickSwap will entitle an investor with a percentage of the $ 23,098 in rewards distributed daily and an APY fee of 33.81%.

Ideally, long-term investors would be smart to research what pools are available in the market, and whether a liquidity pair consisting of strong projects or even a stable coin pair such as USDC / Tether (USDT) sounds appealing, it has the potential to be the blockchain version of a savings account that offers much better returns than can currently be found in any old bank or financial institution.

Maximize Yields by Cultivating Yield

Yield farming is the concept of using crypto assets in a way that generates the highest possible return while minimizing risk.

As new platforms and protocols emerge, they offer high incentives to depositors as a way to extract cash and increase Total Locked-In Value (TVL) on the protocol.

Rewards for STKGHST-WETH LP deposits on DinoSwap. Source: DinoSwap

The high returns offered are usually paid into the platform’s native token as seen above, where a user has deposited a liquidity pool token for an STKGHS-WETH pair that has an APR of 189.2% and has so far generated a reward of 3.312. DINOS.

For long investors who hold a portfolio filled with an assortment of tokens, yield farming is a way to gain exposure to new projects and get new tokens without having to spend new funds.

Related: Here’s why DinoSwap’s TVL (DINO) topped $ 330 million a week after launch

NFT and blockchain games make ‘play to win’ a reality

Blockchain games and NFT collecting are another way to produce a return on a crypto wallet without spending new funds.

Axie Infinity is the most popular example right now, and in-game play involves trading, fighting, collecting, and raising NFT-based creatures known as Axies.

Playing Axie Infinity generates rewards in the form of Smooth Love Potion (SLP), an in-game token that is used in Axie’s breeding process and also trades on major cryptocurrency exchanges. Users can trade SLP for dollar stablecoins or other large cap cryptocurrencies.

According to data from Your Crypto Library, “Today the average gamer earns between 150 and 200 SLP per day,” which at current market value is worth between $ 40 and $ 53.50.

In some parts of the world, this is equivalent to income from full-time employment. Because of this, Axie Infinity has seen a massive increase in user activity and new accounts in countries like Venezuela and Malaysia.

Play-to-win investing, lending, staking, and blockchain games offer a much higher return on investment than traditional banks offer on savings and checking accounts. As the blockchain industry grows, it is likely that investors will continue to flock to platforms offering high returns to engage with the protocol.

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The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.