Earn Passive Income with Crypto Asset (I)
There are various way to generate passive income with your crypto assets holding.
- Centralized crypto lending platform: these are basically lending services that offer deposits and loans on a centralized platform, those who deposit their crypto earn interest on those funds. It’s quite similar to how it works in a bank account. These platform will hold your crypto and lend it out to generate interest and the interest is then paid to you in your account on daily basis allowing you to compound daily. The main difference is that all these crypto loans re heavily collateralized. That means the amount of funds that these borrowers can loan is always less than the value of the crypto. It’s unlike term deposits in bank accounts you do not have to tie your crypto up for a certain period of time. Most lending platforms you have access to your funds anytime. Similarly most of these platforms supports numerous coins that means you can usually earn interest on the coin that you’re looking to hodle. Alternatively if you would just want to earn higher interest on USD than you earn in bank account then you can simply get into stable coins like USDC, USDT.
Potential Risk: When it comes to these platforms users have to be very careful to choose which platform to use, because they hold your funds you should make sure they re legit and secure. There are many lending services, do the research first before making any fund transfer