Staking, Liquidity pools, are some of the most common ways to earn passive income with crypto but choosing a good platform is equally necessary. Both centralized exchanges and decentralized financial platforms provide services where one can lock their crypto and earn a good passive income in return. Staking of coins is done to secure the network on the blockchain and for transaction validation and in return the validators earn the transaction fees and other rewards. The first platform in our list is :
PancakeSwap
One of the top competitors of Uniswap DEX, PancakeSwap is built on BINANCE smart chain, a fast and inexpensive alternative to Ethereum. Pancake swap comes on my top list to grow your wealth. To learn more about PancakeSwap you can refer to this article on
Pancakeswap provides various services that will help you to grow your wealth quickly and at the same time be at lower risk. The native token of PancakeSwap DEX i.e. CAKE is used to participate in various activities such as Farms & Pools.
You can provide Liquidity for various tokens on PancakeSwap and can earn transaction fees from that pool. The APY for providing liquidity on PancakeSwap can be up to 800%, it decreases as more people add liquidity to the farm. Adding liquidity to a farm provides high APY but you can face Impermanent losses also, so always do your own research.
The other service is the pool on PancakeSwap, this is my personal favorite as you can stake your CAKE tokens can get up to 200% APY with low risk. This is one of the best ways to grow your crypto, you can stake your CAKE to earn more CAKE or you can stake your CAKE to earn other tokens that are offered on PancakeSwap.
Current price of CAKE at the time of writing: $11.50
Anchor Protocol
Anchor protocol provides interest on Terra stable coins i.e. (Terra UST), you can stake TUST on anchor protocol and can earn stable yields up to 20% APY. This is best for people who want to earn good interest in their assets and at the same time be on the safe side. Stable coins are not affected by market volatility and Terra UST is one of the best stable coins present out there.
The Anchor protocol rate is backed by a diversified stream of staking rewards from major POS [ Proof – of – Stake] blockchains and that is why it can be expected to be much more stable than traditional banks’ interest rates.
You can also become a liquidity provider by locking your assets and can ear transaction fees but it involves risks while the above mentioned way is much more suitable for stable yields. You can provide liquidity for ANCHOR-UST pairs and can earn APY up to 71%.
Binance Staking
Both of the above platforms were decentralized and here comes the first centralized platform, the world’s biggest centralized crypto exchange, Binance. Binance provides staking services where users can stake their funds starting from 10 days to 90 days and earn interest varying from 4% to 115% depending on the crypto staked.
Binance provides locked stakings as well as a flexible savings account where users do not need to lock their assets and earn rewards daily. The APY for locked staking is more compared to flexible savings. If you opt for locked staking on binance then you have to wait for that particular period to complete to recover your funds in your spot wallet. If you want to recover your invested principal amount before the particular staking period then binance will deduct the interest amount that has been already paid to you.
Using a decentralized application can be a bit annoying for a newbie therefore I advise newcomers to start learning, how to use centralized exchanges and other trusted centralized platforms.
Sign up on Binance: Referral Link
Celsius Network
Celsius Network is a UK based company that provides financial services with the help of decentralized finance. Users can earn APY up to 17% on their crypto. Celsius offers crypto lending and borrowing services, it is more like a banking system but with better interest rates on savings. Celsius network is good for people who are not much interested in crypto trading and just want to make stable passive income on their crypto.
Celsius provides best APY on SNX [ Synthetix Network Token] i.e. 17% APY & 8.85% APY on stablecoins. Celsius network provides APYs based on tiers and also you can earn interest in the form of crypto you locked in or in the form of Celsius token, you can opt for earn in celsius token for better interest rates. For example : If you locked SNX token for 1 year you will earn 14.4% APY and you will earn reward in SNX but if you opt for reward in celsius token you will get 17% APY. This applies to all the cryptos that are being offered on celsius network.
Signup on Celsius: Referral Link Get 50$, if you hold 400$ or more on celsius network.
Earning passive yield with crypto is not risk free if you are investing in altcoins because your reward depends on the current market value of that coin but at the same time you can earn high APYs up to 500% in certain cryptos while if you invest in stable coins such as USDT or UST you will be able to earn APYs up to 20% that to risk free as stable coins are always pegged to U.S dollars and are not affected by market volatility. There are more platforms out there that offer good returns and I will cover more of them in my next blog.
If you want to invest in stable coins then you must go for anchor protocol as they provide the best interest rate on the stable coins. You will need to buy UST that is a Terra blockchain stable coin and you will be able to earn up to 20% APY on your investment.
Another thing is that a lot of people prefer centralized exchanges to keep their investments but in reality, the decentralized finance system is way more better than the centralized one but you need to be more technical if you are working on decentralized exchanges.
