How to earn crypto passive income with trust wallet

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Learn about all the different ways you can earn cryptocurrency passively; directly in your Trust Wallet app.

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The ability lớn earn passive income as a crypto holder is one of the most appealing features of the crypto ecosystem. Whether you are lending tokens in decentralized lending pools or staking coins, there are a plethora of opportunities lớn earn income on your crypto investments.

Read on khổng lồ discover five ways you can earn crypto passive income using Trust Wallet.

Earning Passive Crypto Income: Here’s How

Before we take a look at the five different ways that you can earn crypto passive income with Trust Wallet, it’s important that you consider the amount of money (and effort) you want lớn invest.

Some passive income opportunities are more capital intensive than others, while some require more research & effort than others.

Also, remember that cryptocurrencies are susceptible lớn strong market corrections. If the price of the particular asset you’re HODLing falls, it can eat into the percentage of the passive income earned.

Below are the five different ways that you can earn passive crypto income with Trust Wallet.

Staking

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One of the most common ways that you can earn crypto passive income with Trust Wallet is through staking.

Staking allows crypto holders lớn earn passive income (in the form of staking rewards) for locking up tokens to tư vấn the consensus protocol of a crypto network.

In a sense, staking is akin lớn putting your crypto into an interest-bearing savings account, except that it pays out in crypto — not in fiat currency.

Many leading crypto networks deploy a consensus mechanism based on the Proof-of-Stake protocol, where network validators stake tokens to lớn secure the network và verify transactions. As a reward for helping lớn maintain the integrity of the network, validators (stakers) receive a mô tả of the block reward.

Staking is a good way of making your cryptoassets work for you as they generate income instead of just sitting in your wallet. Moreover, by staking, you are also able khổng lồ contribute lớn the efficiency and security of the blockchain projects that you support.

Trust Wallet currently supports in-app staking for six different cryptocurrencies. Namely BNB, Kava, Cosmos, Algorand, Tezos, và Tron. However, more staking options will be available in the near future!

DeFi Lending

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DeFi lending is one of the most popular use cases in the fast-growing DeFi market. By taking part in DeFi lending, you can lend your crypto lớn others và earn interest. Leading DeFi lending protocols that you can access directly in Trust Wallet include Aave or Compound.

DeFi lending works in a similar manner as lending works in the traditional financial markets. The key difference is that the decentralized applications (as opposed to financial intermediaries) match borrowers & lenders via smart contracts, & no credit checks are required.

Compound, for example, is a leading decentralized lending platform that enables you to lớn loan your assets in decentralized lending pools. When a borrower takes out a loan, they pay interest. All lenders receive a distributed chia sẻ of interest as an incentive khổng lồ stake their tokens thus providing liquidity. Interest rates vary as they are based on supply và demand.

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The Trust Wallet ứng dụng allows you khổng lồ seamlessly access a range of DeFi protocols - including Aave, Compound, & CREAM - should you choose DeFi lending as your way of earning crypto passive income.

Providing Liquidity lớn Automated Market Makers (AMMs)

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Another excellent way khổng lồ earn crypto passive income is by providing liquidity to lớn automated market makers (AMMs).

AMMs are decentralized trading pools that match buyers and sellers using smart contracts. As an incentive to add liquidity (by depositing tokens) in a trading pool, liquidity providers receive a cốt truyện of the trading fees plus governance tokens.

Uniswap’s launch in 2018 saw it become the first decentralized platform to lớn successfully make use of the automated market maker (AMM) protocol. On Uniswap, users are able khổng lồ exchange one ERC20 token for another without needing a third party.

What’s more, it allows anyone with Ethereum tokens to lớn earn passive income by contributing liquidity lớn a pool & earning a nội dung of the trading fees.

Yield Farming

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Yield farming is another way of earning crypto income using Trust Wallet.

The process of yield farming involves providing liquidity lớn decentralized lending or trading pools to lớn receive liquidity pool tokens that are then staked in a yield farm khổng lồ earn an additional yield on vị trí cao nhất of your liquidity pool fees.

Using Trust Wallet, you can access a wide range of yield farms on Ethereum, Binance Smart Chain, and other blockchain networks khổng lồ find the highest yields in the market.

While yield farming is arguably a very risky way khổng lồ earn passive income in crypto, it’s also one of the potentially highest-paying.

NFT Farming

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NFT farming is a developing concept that involves staking NFTs for a reward or staking tokens for an NFT as compensation.

NFT farming functions in essentially the same manner as yield farming, with the main difference being that the former involves NFTs as either the staked token or reward.

NFT farming builds liquidity & utility for NFTs that would otherwise just be sitting idly in your wallet.

To NFT farm using Trust Wallet, you can use the in-app DAppbrowser or WalletConnect to lớn access NFT farming DApps with the click of a few buttons.

Similar to lớn “traditional” yield farming, this is one of the riskier ways khổng lồ earn passive income in crypto. So it’s best to lớn only risk as much as you can afford to lớn lose.