A Guide to Passive Income in the Crypto Space
Passive income opportunities in the world of cryptocurrency are not limited to trading. The DeFi industry is constantly evolving and expanding, providing various options for generating additional income with little effort. One such way is by providing liquidity, which is also referred to as yield farming. Decentralized exchanges and lending protocols offer rewards to fill their pools. However, there are risks associated with it, such as impermanent loss. To minimize such risks, some liquidity providers choose to stake stablecoin pairs instead, even though such a strategy means lower gains.
Another way to earn passive income in the cryptocurrency industry is by participating in ICOs and ISPOs. While ICOs require investors to buy new coins and thus risk a part of their crypto holdings, ISPOs allow investors to keep their funds by staking them in a project's pool instead. In both cases, it is crucial to conduct comprehensive research on the project's team, product, technologies, and minimum buying or staking amount and to pick projects that align with your investment horizon. This diligent research will ensure that you make informed decisions and prepare yourself for possible mishaps.
From liquidity provision to ICOs, you can learn more about various passive income opportunities on the Kinetex blog.
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