Cryptocurrencies are unique financial instruments that allow anyone with an Internet connection to participate in the decentralized economy and earn money from it. While investing in crypto can bring sizeable returns, you should not disregard potential risks, even if they seem negligible.

Deposits

One opportunity for earning on crypto is crypto deposit yields. Some cryptocurrency exchanges are ready to pay for attracting users and holding funds on their platforms. That allows them to solve various business problems, such as lending currency for additional interest.

Decentralized lending

Decentralized lending platforms allow you to directly take part in the lending process. Here users of the platform lock their crypto assets in a lending pool. This pool is then used to lend crypto to others for interest and commission fees. Users receive income from the lending process, while the provider keeps a part of the commission.

Crypto mining

All cryptocurrencies are based on blockchain technology. They require parallel computations performed by numerous computers to maintain correct and secure operations. Many popular cryptocurrencies, such as Bitcoin and Litecoin, use the proof-of-work (PoW) mechanism. Users around the world, who are referred to as miners, compete against each other to solve complex equations. The winner can then verify the next block of transactions and earn a reward.

Staking

Proof-of-work is not the only way to mint crypto coins. The other popular mechanism, called proof-of-stake (PoS), relies on users staking their cryptocurrencies in the blockchain. They receive a reward for locking up their funds for a certain period of time, similar to deposit yields offered by banks.

Games

Online games can be a source of passive income as well. There are several crypto games that offer their players the opportunity to earn real money. The most popular such games are Axie Infinity and Decentraland. In the Philippines they even became a source of income for laid-off workers during the pandemic.