Discover the most effective crypto passive income strategies available today, offering you the potential to grow your crypto holdings steadily and effortlessly. Many crypto investors opt for passive income in crypto, recognizing that active trading can be challenging due to the high volatility of many crypto assets. While passive income strategies may offer smaller returns than trading, they also come with reduced risk, making them a more stable and reliable option. It’s important to remember that any opportunity for profit carries a degree of risk, and this applies to passive crypto income strategies as well. While they are generally less risky than active trading, it’s crucial to be aware that losses are still possible. Without further ado, here are the best crypto passive income strategies that you can use to grow your crypto holdings over time:Now that we know the basics, let’s explore how each of these strategies can be put into practice at some of the leading crypto investment platforms.Kraken is widely considered one of the best crypto exchanges in the industry, owing its reputation to stellar user experience and a strong track record on security. However, a lesser-known advantage of Kraken is its very enticing Earn program, which features a wider variety of crypto and even fiat savings products which makes it one of the top crypto staking platforms.If you are holding a significant amount of USD, you’ll be happy to learn that Kraken supports US Dollar staking at higher rates than most popular banking products and CDs. At the moment, you can expect to earn up to 5.75% APR on your USD. In addition to USD, Kraken supports Euro staking as well, albeit at a lower rate of 4% APR. Unfortunately, the staking service is not available to US customers due to regulatory restrictions.When staking crypto (or fiat) on Kraken, the staking rewards are paid out every day in the currency you originally staked. In other words, if you stake Ethereum, then you will receive ETH tokens as a reward. It’s worth noting that Kraken’s staking offering is not available to customers from the US due to regulatory restrictions.Notable passive income options on Kraken:Visit KrakenBinance is the largest cryptocurrency trading platform in terms of users and trading volume. The platform has a robust Earn program, which features dozens of cryptocurrencies at both flexible and fixed limit staking options. Usually, the fixed products come with higher returns, but they prevent you from trading staked crypto before the product expires. At the time of writing, Binance pays as much as 6.8% APY on Tether deposits and 8.7% on USD Coin. These are very high returns for stablecoins, and they are among the highest returns you can expect on these digital assets out of all platforms.In addition to the Earn platform, Binance has several other opportunities for passive income hunters. There’s the Launchpool and Launchpad platform, which allows customers to stake BNB and other supported assets and receive tokens from up-and-coming projects. The returns vary greatly depending on the project, but some tokens have generated 200%+ returns within the first few weeks of trading, like the XAI token, for example.Binance Megadrop is another platform that lets users earn tokens from up-and-coming projects. Unlike Launchpool campaigns, Megadrop requires participants to complete various Web3 tasks to boost their point total, which is ultimately used to determine the allocation of airdroped tokens. It’s worth noting that virtually all passive income strategies available on Binance are boosted by holding and using BNB, usually by several percentage points.Notable passive income options on Binance:Visit BinanceKuCoin is a crypto exchange that features a broad selection of supported coins and tokens, with more than 1150 trading pairs enabled for over 770 currencies. Most of the exchange’s catalog is available on the KuCoin Earn platform as well, giving holders the opportunity to generate passive income with crypto assets.Some of the notable options available on KuCoin’s Earn platform include USDT and SOL products, which can provide up to 100% APR on fixed savings. For example, new users can earn 100% on their USDT deposits for a period of 7 days, giving them a nice boost when joining KuCoin for the first time.Similar to Binance’s BNB, KuCoin has its own native token, KCS. It allows holders to generate additional rewards, take advantage of lower fees, and participate in farming campaigns for crypto projects through Spotlight, a token launch platform.Notable passive income options on KuCoin:Visit KuCoinNexo is a comprehensive cryptocurrency platform that offers a range of financial services, including lending, borrowing, staking, and a cryptocurrency-backed credit card. It offers a variety of staking options, allowing users to earn interest on their digital assets.It supports popular cryptocurrencies like Bitcoin and Ethereum, stablecoins like USDT and DAI, and even fiat currencies like USD, EUR, and GBP. Holding and staking NEXO tokens can increase the interest rates on other assets and provide additional benefits like fee discounts and dividends from Nexo’s profits.introduced a cryptocurrency-backed credit card, known as the Nexo Card, which offers several unique features. The card is directly linked to the user’s Nexo account, allowing them to use their crypto assets as collateral. This means users do not need to sell their cryptocurrencies to access credit. Cardholders receive instant cash back on every purchase. The cashback rewards are provided in either BTC or NEXO tokens and can amount to up to 2%.Notable passive income options on Nexo:Visit NexoWhen it comes to liquid staking, no other platform comes close to Lido in terms of market shares. At the time of writing, more than $35 billion ETH was deposited through Lido, allowing investors to earn up to 3.3% APR on their Ethereum holdings. In addition, LDO holders can participate in governance decisions, influencing which cryptos the platform supports, and more.Lido is arguably the best Ethereum staking choice for those who wish to stake their ETH but don’t have the required 32 ETH to stake as a solo staker, and don’t want to use cryptocurrency exchanges for their staking.When staking via Lido, users who deposit their ETH get Lido Staked Ether (stETH) in return. Staking rewards accumulate in the form of stETH. Meanwhile, stETH can be traded and transferred as a regular token. This is a major benefit over staking ETH without receiving a liquid staking token in return.Notable passive income options on Lido:Visit LidoAs a final passive income-generating opportunity in crypto, we’re putting a spotlight on Kiln. The platform supports more than 30 Proof-of-Stake (PoS) blockchains, boasting a wide array of staking and, thus, passive income options. The list of supported networks includes Ethereum, Avalanche, Cosmos, Aptos, and others.At the moment, Kiln is one of the few platforms that leverage the novel concept of Ethereum restaking to provide its users with an additional way of generating passive income. It allows Ethereum stakers to basically reuse their ETH or liquid staking tokens via the EigenLayer restaking protocol. This allows users to earn double rewards while allowing services that connect via EigenLayer to connect to the platform and increase their security.Restaking has become a major trend in the crypto industry in recent months, with EigenLayer recording a TVL of more than $15 billion as of this writing. If restaking ETH is something you are interested in, then Kiln is probably your best choice. However, you should note that restaking via EigenLayer currently doesn’t generate ETH rewards. Instead, users earn EigenLayer points, which many assume will be converted to real money rewards once the protocol matures. There are also secondary markets for these points, but their integrity is questionable.Notable passive income options on Kiln:Visit KilnIf you’re planning to invest in cryptocurrency for the long term, it’s certainly worth considering allocating a portion of your crypto portfolio into passive income strategies. On-chain staking is one of the safest methods of earning crypto, although it requires you to ensure that your cryptocurrency is stored safely. Before we wrap up, please keep in mind that when you’re staking or otherwise earning yield on volatile assets such as ETH or ADA, the overall dollar value of your holdings could drop even though your stack of coins is growing passively. When calculating how much you can expect to earn from staking, you need to take the volatility of the cryptocurrency you’re staking into account. If you want more predictable returns, consider using passive income products based on stablecoins instead. Other than Lido, all platforms included in this list offer stablecoins staking products.In addition, you should be extremely careful if you encounter any crypto passive income platforms or services that advertise very high yields and “guaranteed” profits, as they are usually scams. Remember: if it sounds too good to be true, it probably is.
