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How can Kevin the monkey earn passive income with digital currencies?

avatarJonnyDec 16, 2021 · 3 years ago3 answers

Kevin the monkey is interested in earning passive income with digital currencies. Can you provide some strategies or tips for him to achieve this goal? He wants to know how he can make money without actively trading cryptocurrencies.

How can Kevin the monkey earn passive income with digital currencies?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    Sure, Kevin! One way to earn passive income with digital currencies is through staking. Staking involves holding a certain amount of a particular cryptocurrency in a wallet to support the network's operations. In return, you receive rewards in the form of additional coins. This method is popular among proof-of-stake (PoS) cryptocurrencies like Cardano (ADA) and Tezos (XTZ). By staking your coins, you can earn a steady stream of income without actively trading.
  • avatarDec 16, 2021 · 3 years ago
    Hey Kevin, another way to earn passive income is by lending your digital currencies. Some platforms allow you to lend your coins to other users in exchange for interest. This is known as decentralized finance (DeFi) lending. However, it's important to do thorough research and choose reputable lending platforms to minimize the risk of losing your funds. By lending your coins, you can earn interest on your holdings without the need for active trading.
  • avatarDec 16, 2021 · 3 years ago
    Well, Kevin, if you're looking for a more hands-off approach, you might consider yield farming. Yield farming involves providing liquidity to decentralized exchanges (DEXs) or liquidity pools and earning rewards in return. However, it's important to note that yield farming can be risky, as it often involves interacting with new and untested projects. Make sure to do your due diligence and only invest what you can afford to lose. BYDFi offers a yield farming platform where you can explore different opportunities for earning passive income through liquidity provision.