How to make passive income from your coins
The best part of crypto passive income is no matter how volatile the market is, you are still making the passive income, well the coin price will determine the how high and how low your income would be but It does not matter at the end of the day as long as we have our assets safe and we received the passive income from that assets.
So, are you holding coin on your wallet or your exchange websites, in this video, we will take into deep drive. How to make passive income from your coins. And I will try to explain, Is there risk involved? If Yes, how to identify it? How to find high risk vs low risk.
Please watch full video for detailed explanations:
The normal scenario to earn passive money from your coin: if you buy it from exchange website as such Binance.com or Coinbase.com. They also offer many of the coins as staking or liquidity provider, what that mean, you can also earn passive income from your coin within you exchange and if you are new to crypto this is going to very useful for you. You don’t move your coin from one place to another and so on and fourth. This is going to be very useful for you.
However, Binance.com and Coinbase.com have limited coin listed for passive income, in this video I will take you through, how to earn passive income from these coins, I will show you how to stake your coin on Binance.com and Coinbase.com.
On the advance scenario: If coinbase.com or binance.com does not accept your coin for passive income, don’t worry, you can earn money from other coins as well. This is where we take deep drive. I will show you how to earn passive income from the coin they are not accepted in Coinbase or Binance.
Bear in mind, normally these kinds of staking centralize or decentralize website or apps will have higher interest rate in the return. But remember higher the return involve higher the risk as well.
What are the risks while staking your coins to make passive income:
- Impermanent loss: it’s one of the very common issue while trying to earn passive income online. Impermeant loss mean, the temporary loss of funds while being a liquidity provider because of volatility in a trading coin pair. This also explained how much more money you would have had if you simply held your coin to your wallet instead of providing the liquidity.
- There are some website are holding the LP pool money for a month even after you removed your coin from the liquidity provider (LP) pool.
- There are lots of APAM website which claimed they are offering the yield interest in higher rates, infect, they want to stake your coin and run away. Please do your research before giving access to your assets.
How to stake coin on Coinbase
First find the list of available coin for staking or coinbase supported staking list from coinbase.com/staking, if the coin you have on your coinbase exchange website or wallet matches, you need to enable the staking for your account.
How to enable staking on Coinbase
- Login to your coinbase account.
- Click to profile icon
- Go to setting
- and go to financial services and enable the coin you want to use for staking on coinbase.com
Staking outside of the Coinbase list:
There are many liquidity providers who offer yield for liquidity and you can also earn the APR, in this demo I am going to show you how to stake amp token coin, amp is new coin which is listed in coinbase a week ago.
How to stake AMP token coin
Go to app.flexa.network and connect your coinbase wallet. Remember you should have coinbase wallet not the coinbase apps and your AMP should be transferred to that wallet.
please the the video for details.
How to stake in Binance and make passive income
Once you are on the binance.com, you have several options to earn passive income. Make sure you are login for the instant staking result.
- On the top navigation, you can see Finance, Under finance you can see, Binance Earn, Binance Pool and Liquidity Swap
- Let’s start with Binance earn
- This is where you can find the popular staking coins on binance.com
- First make sure where you are staking your coins, the Guaranteed staking which is more secure than high yield. Sometime high yield also works fine, you just need to for the context, Let’s see an example: If you are holding a Pond token coin on binance.com, and right now Binance provide 75% high yield on this coin with BUSD, which is Binance USD and it’s a stable coin, if you already have this coin, you already took a risk now reinvesting this coin to earn passive income will carries the same risk as you are holding it. So why not make some extra income by staking it to binance.com, I don’t recommend buying a high yield coin just to earn passive income, this is a great risk but you already have coin on your wallet, make some cash out of it.
Guaranteed staking will keep your coin locked for the given periods where as DiFi staking will be more flexible. Similarly, locked staking will have high rewards whereas DeFi staking will have low. On the locked staking, you can see the following:
Name of the coin, products variation and excepted APY and duration.
If you already login, upon clicking to the coin you have in the balance you have an idea, how much you will be received as return for the calculated days. In this demo, I will show you how to stake your XRP coin to Binance. (please watch the videos with details step-by-step guide on how to stake your XRP on Binance)
<h2>How to stake coin on PancakeSwap for passive income – risk vs rewards </h2>
Staking in Pancakeswap actually gives you more return then Binance.com or coinbase.com but also has more risk then Binace and coinbase. it’s universal finance rule, higher the risk higher the return. Main risk is its decentralized exchange, there is not really a contact point if you needed a support. But there is a plus, this network is built on Binance Smart Chain, which is one of the products developed by Binance.com
Let’s start by staking options on PancakeSwap: There are couple of options you can earn passive earning from PancakeSwap.
- You can be a Liquidity provider which is also called Farms in the pancakeswap
- Yield and auto compounding pools using Pancakeswap which is also called Pools
<h2> How to stake coin on Trust Wallet for passive income </h2>
Top of your Trust Wallet you can see Finance, this is where you can stake your coins. The best part is if you are newbie to crypto you hate transferring coins to different wallet and places I guess. I would be very happy have coins on one wallet and use at maximum as possible. But Trust Wallet have selected coins for staking and APR is very low compared to PancakeSwap or other exchange.
<h2>What is the best strategy for staking coin and making passive income </h2>
- Stake stable coins for low risk
- Do not put your eggs on one basket (do not invest everything on one coin and one exchange or apps)
- Always reac cost, fee and release terms
If you have any question, do not forget to write in the comment section below, do join us on YouTube for regular update.