In this article, I will learn you what crypto passive income is.
We will not only define what crypto passive income is, but we will also deep-dive into passive income itself.
On top of this, we will present how we earn up to 20% on our crypto passive income.
Most important, we will learn you how to diversify your crypto and Bitcoin passive income by creating income from a few different sources.
There are other ways to earn Bitcoin passive income but in this article, we will focus on interest accounts where you deposit your cryptocurrencies and earn interest.
Let's get started
What is passive income?
Investopedia defines passive income as earnings derived from a source in which a person is not actively involved. Examples are rental property, limited partnership, or other enterprises. There are a few more examples as stock dividends, saving interest, and lending interests.
What is crypto passive income?
It's the same as passive income but
The income should be paid in a cryptocurrency or the investment should be denominated in a cryptocurrency.
- You deposit Bitcoin into a savings account but you receive USD as interest payments
- You deposit USD into a savings account but you receive Bitcoin as interest payment (This is not very common and we have never seen it)
Most common are
- You deposit Bitcoin into any passive income source and you receive Bitcoin as payments (An example is BlockFi)
- You deposit Bitcoin into any passive income source and you receive a native token as income (An example is Celsius)
How to get 20% crypto passive income?
A 20% return on passive income is huge, isn't it? Also, there is a possibility to get $50 free when you sign up with the app. In addition, you can get an additional $50 for free when you stake in the desktop exchange.
Is it even possible?
Crypto .com does offer 20% APY when you stake in their desktop exchange.
It's a bit confusing that Crypto .com has one staking opportunity in the app and another in their exchange.
In their exchange, you can get 20% APY on your CRO staking
In the Crypto .com app you can get 18%+2% APY. See the table below for interest rates from the app staking. You need to stake 100.000 CRO to get the extra 2% but only 10.000 to get the 18%.
Crypto .com offers a service they call "Earn" where you can deposit your cryptocurrencies on three different terms, flexible, 1 month, and 3 months.
You will get different interest rates depending on how long time you are willing to lock your holdings. Also, you will higher interest rates if you stake more CRO. CRO is the native token for Crypto .com and they are working hard to establish use cases in the everyday life for their native token, CRO. There are several examples of how they try to establish CRO for different purposes in everyday life such as payment in the app, staking for rewards, staking for a CRO VISA card, and more.
How to sign up and stake in the app?
1. Sign up with Crypto.com by clicking on our referral link
2. Complete Sign up
3. Complete KYC verification
4. Stake 1000 CRO (200 USD) for the CRO VISA card.
5. Use referral code: mcmk7qgbhh
How to sign up and stake in the online desktop version?
- Sign up with Crypto.com Exchange by clicking on our referral link.
- Complete Sign up
- Complete KYC verification
- Stake 5000 CRO (200 USD) on the exchange.
- Use referral code: mcmk7qgbhh
How to diversify crypto passive income?
So, now you might have a great passive income of 20%.
However, you should never rely on one source of passive income. You must diversify into 5 different sources of passive income,
If you go over 5 sources there will be more administration to handle all different accounts so dont overdo it (I have done this myself and trust me when I say that it's not worth it)
Actually, if you are serious about the passive income you should get 5 completely different sources. Examples could be stock dividends, rental property, fiat lending, and more.
However, in this article, we focus on crypto passive income, and therefore we will only list passive income related to crypto.
So, here is our crypto passive income portfolio
1. Crypto .com as already mentioned
Crypto .com is a perfect platform for Bitcoin and crypto passive income. Below you can see the interest rate if you stake 10.000 CRO. You will also receive interest on your CRP staking amount.
2. Earn Bitcoin Passive Income with Nexo
Nexo is offering great interest rates (5-10%) on fiat holdings, stablecoins, and crypto holdings. Also, they distribute 30% of their net profit to the NEXO tokens holders.
BlockFi is offering great interests for Bitcoin, Ethereum, Litecoin, and stablecoins. They pay interest once every month and you can choose yourself in what currency you want to receive to interest payments in.
Celsius is offering great returns on stablecoins (15.9 %) but also a great return on many cryptocurrencies. For instance, they give over 8.9 % on Ethereum. The complicated thing about Celsius is that they are offering different rates if you choose to receive payments in CEL tokens or not. Also, they pay different rates depending on your loyalty level. Your loyalty level is dependant on your CEL token ratio compared to your total holdings.
Summary - Crypto Passive Income
I have invested in Crypto .com, Nexo, BlockFi, and Celsius to earn crypto passive income. I have invested in all four for three reasons:
1. I want to diversify my investments. For example, one of the platforms could potentially be hacked or similar
2. There are different interest rates for different platforms. For example, Celsius might have the best Ethereum interest rate while BlockFi has the best Bitcoin interest rates.
3. There are different loyalty bonuses for different platforms. For example, you will receive the best interest rates with Celsius if you hold 15% CEL token in your account. Therefore, I dont want to hold a too large total sum on Celsius.