CandleFocus

2 ways investors can earn passive income with crypto in 2024

The article discusses the opportunities for investors to earn passive income through crypto in 2024. Similar to traditional financial products, passive income in the crypto sphere can be generated through lending or becoming a stakeholder. Staking tokens in proof-of-stake networks can earn passive income through token issuance and transaction fees. However, it is important to consider the "Real Staking Reward Rate" which weighs rewards with inflation. Some cryptocurrencies like DYDX and Celestia are not considered favorable for staking due to high supply inflation. On the other hand, cryptocurrencies like MultiversX, Ethereum, Algorand, and Near have better economic models and provide opportunities for earning passive income through staking. Additionally, decentralized finance (DeFi) protocols allow investors to generate yield by supplying assets for lending operations. Examples include Hatom, Aave, Folks Finance, and Burrow Finance. Investors holding Circle's USDC stablecoin can earn dynamic passive income from borrowers by depositing it in these protocols. However, it is important for investors to be aware of the risks and have a clear strategy when pursuing passive income with crypto.

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