How to earn Passive income with Crypto (9 Proven Methods)

Due to the current bear trends in the cryptocurrency market, many investors and traders are now focusing on the possibility of earning passive income.

Aside from offsetting losses during market crashes and downturns, crypto passive income can also help boost your crypto capital. Moreover, this strategy is more proactive than using the outdated HODL method.

Although holding promising coins for a long time was considered a good strategy in the past, it’s no longer the best way to earn passive income in the current market. In this blog, we’ll talk about the best strategies to get passive income from crypto.

1. PoS Staking

A staking process involves securing funds on a blockchain platform to validate transactions. In exchange for this, the platform’s blockchain will pay you rewards.

It’s a popular way for users to receive passive income and can help secure the network against attacks and spam.

Bybit Savings allows users to stake their assets in fixed and flexible terms. It allows them to earn interest on their assets, just like they would with a traditional savings account. Unlike other cryptocurrencies, Bybit Savings is not based on fiat currency.

2. Liquidity Mining

Another type of passive income commonly discussed in the cryptocurrency market is liquidity mining. This activity focuses on providing liquidity to the coin swap pools on DEXs. 

Unlike yield farming, this method doesn’t involve paying interest. Instead, you’ll receive liquidity pool tokens, essentially synthetic assets that can be reinvested on different platforms.

Bybit’s Liquidity Mining is a liquidity pool that uses an automated market maker model. It allows users to earn high yields by adding liquidity to the pool. They can also leverage their share of the pool to increase their yield.

3. Crypto Lending

The umbrella term crypto lending refers to the opportunities generated by lending your funds to various trading platforms, exchanges, and protocols. These parties can then use your funds to earn interest.

Bybit allows users to borrow coins on the platform as long as they are registered users. The interest rate is calculated hourly and will start to accrue at the end of the loan. 

The interest rate is calculated as one hour for loans less than an hour, based on the amount borrowed and the rate displayed at the time of the loan. 

4. Yield Farming 

Yield farming relates to putting your cryptocurrency in a pool with other users to earn interest and rewards in the future. The funds in the pool are generally used for earning interest through crypto lending. 

Bybit lets users take part in yield farming to earn lucrative rewards. It’s one of the best ways to grow your crypto holding; however, it comes with higher risks. 

Yield farming needs to be more consistent and a good option for beginners new to crypto trading. 

5. Margin Lending 

Margin trading is done to trade a financial asset using borrowed funds from the exchange. Simply put, it’s a loan taken from the exchange in the name of ‘leverage.’ 

On Bybit, traders can trade small amounts and earn significant profits through 100x leverage on positions. It’s one of the biggest benefits of doing margin trading on Bybit to make profits in less time. 

Bybit also doesn’t require a lot of capital to open a position, so traders have better chances of opening different positions to diversify their investment portfolio. 

6. Spot Trading 

Spot trading relates to buying and selling a financial instrument, a commodity, or a foreign currency. The settlement occurs almost immediately and can be done in either centralized or decentralized exchanges. 

Bybit is the simplest platform where you can start spot trading after creating an account. Simply purchase USDT and start trading it on the platform. 

Bybit’s spot trading platform is known to be the best to earn significant crypto profits in no time. 

7. Crypto Affiliate Programs 

Affiliate programs are another famous way to earn passive income through crypto. Traders can earn commissions by referring an exchange to other traders—in short, by becoming an affiliate for them.

You can sign up for the Bybit affiliate program and earn profits on client trades. All you have to do is submit an application and wait for its approval. 

Start promoting the link and earn lifetime commissions of up to 30% on client’s trades + 10% on sub-affiliated earnings. 

8. Peer-to-Peer Lending 

Gone are the days of lending and borrowing money through traditional means, all thanks to peer-to-peer lending.

This lending connects lenders and borrowers directly to lend and borrow money. In addition, since it is crypto lending, you’ll be connected with traders willing to buy or sell crypto at a specific price.

Bybit also makes it easy for traders to buy and sell their crypto holding on their secure platform. The seller and buyer decide the crypto price to make the process smooth and fast. 

9. Crypto Mining 

Last on the list to earn passive income through crypto is cloud mining. It’s one of the best ways to make money; however, some blockchains require high-power machines. 

Bybit also offers a crypto mining network that’s extremely profitable. You can mine a specific currency to join the network and make profits. Remember that it’s a competitive process; however, the results are worth every effort. 

The Takeaway

Through cryptocurrency, you can earn profits and a steady stream of passive income. More and more people are tying up with crypto exchanges to make profits in less time. The future of crypto trading is quite bright, so it’s recommended to start trading crypto today.

Although crypto investing can be frightening, the products offered by Bybit Earn can make it easier for experienced and novice investors to get into the world of cryptocurrency. Whether you’re new to the industry or have been part of it for a long time, you’ll find something that fits your needs within the platform. 

Thomas Raynott

Thomas Raynott

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