How to earn passive income online with Ethereum
Author: @Mycryptoview Token
Last Updated: June 20, 2023
Cryptocurrency has become a topic of conversation among friends, family, and colleagues, sparking your interest in exploring its potential for passive income. In this how-to guide, we'll delve into two key aspects: earning passive income with Ethereum and providing a brief overview of Ethereum and cryptocurrency.
Cryptocurrency is a secure digital asset that operates as a medium of exchange, free from the control of intermediaries or third parties. It offers a decentralised and transparent method of conducting transactions.
Now, let's focus on Ethereum. This particular blockchain platform serves as more than just a digital currency; it also empowers users to create smart contracts. For instance, you can use Ethereum to develop code for generating cryptocurrency tokens or even build decentralised applications, such as voting systems.
By understanding Ethereum's potential and leveraging its capabilities, you can explore avenues to generate passive income.
Here are the steps on how to earn passive income with Ethereum:-
- Staking:- Staking is a way of participating in the validation of transactions on the blockchain by locking your coins to earn rewards. With the ongoing transition on the Ethereum network from proof of work consensus to proof of stake means you will be able to stake 32 Eth to validate transactions on Ethereum blockchain.
- With Ethereum defi:- Decentralised finance in short form “Defi” is one of Ethereum use cases. Whilst earning passive income through Defi could be risky because of losing all your funds or due to impermanent loss, that is not to say you can't earn passive income with defi. So here are ways you can earn passive income with defi:-
- Lending and borrow coins in a protocol like compound to earn interest.
- Yield farming:- is a way of locking your cryptocurrency in a protocol to earn rewards. In simple terms, you are farming tokens(staking lp tokens) to earn another token then convert the token to Eth. It is possible in future some of this farming platform may start to add more use cases to the farmed coins. One example of a yield farming platform in 2020 is the controversial Sushiswap that followed by multiples copies coming out due to the hype. We also created our copy called bubbleswap.org for experiment purposes.
- Uniswap:- is one of the top decentralised exchange(DEX) in the crypto space. You can provide liquidity to get the trading fees, for example, you earned Mycryptoview tokens (MCV) instead of selling it you can add MCV-ETH liquidity on Uniswap and earned 0.3% fees per trade. You can also provide liquidity to other tokens on Uniswap, please note that providing liquidity on uniswap is risky due to impermanent loss(this is when the value of one token drops below the initial price when you provided the liquidity).
- Non-fungible tokens(NFTs):- You can trade unique digital items on the blockchain. Cryptokitties is one example or you can create your own NFTs and sell on rarible.com.
3. Holding aka Hodling:- This is probably the easiest way to earn passive income with Ethereum by just buying and holding it. For example, you bought ETH in 2015 and hodl or maybe you bought in 2018 when the price dropped and hodl. You will have to do your own research due to cryptocurrency volatility.
4. Ethereum Faucets:- is a way of allowing users to earn a reward in ETH for completing a task or participating in games.
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