The crypto market offers a variety of financial instruments for generating income using digital assets. Most often, trading tools allow to:
- trade on the spot market;
- buy futures derivatives;
- use leverage and margin.
There is also an option to earn crypto passively. Let’s discuss it in this article.
Passive Crypto Earn
Like in traditional banks, you can deposit your digital coins to a crypto platform and receive interest in return. The same as with banks, such deposits help crypto exchanges to increase liquidity while you can generate income by doing nothing. Staking cryptocurrency does not require complex strategies and reading charts because it is a much easier way to profit. See what should be considered in this option:
- Picking a crypto asset for staking. Choose coins with the biggest liquidity; otherwise, you risk losing more than you earn. For example, if you pick a highly volatile asset, its rate may drop dramatically, so your losses will exceed interest.
- Evaluate risks when putting your crypto assets in staking: once your coins are locked, you cannot get them back until the staking plan expires.
It is quite simple to earn crypto in staking. Let’s see how it works and take the WhiteBIT platform as an example.
Suppose you have some SOL coins. So you can register an account on WhiteBIT and move some SOL to the main account. Then pick a staking program. There are around 40 staking plans that vary by underlying asset and timeframes. That may be a 10-day staking or one-year staging plan. The longer you keep your SOL locked, the more rewards you get. Rewards are accrued to your account once the staking plan is over. That is, you receive your initial investment back and additional coins on top of that. Here it is important to understand if you pick rather stable and liquid crypto assets like SOL, your risk is less than if you pick some little-known coin that is incredibly volatile or an asset that depends on hype and rumours in the market.
Visit the WhiteBIT blog to understand how to earn crypto passively and begin with the shortest staking plans to check out how it works.