The post 2 ways investors can earn passive income with crypto in 2024 appeared on BitcoinEthereumNews.com.

Investors can earn passive income through many different traditional financial products, including government and corporate bonds or stock dividends. Similar opportunities also exist in the crypto sphere, often ignored by mainstream investors, creating potentially better results from yield farming. In crypto, similarly to other markets, the passive income can come from lending money to institutions in return for an agreed-upon interest rate (bonds) or by becoming a stakeholder and participating in the distributed revenue (dividends). These would translate into staking tokens as a validator or delegator in proof-of-stake (PoS) networks, being paid by the protocol’s emission and users’ fees, or supplying tokens in decentralized money markets and liquidity pools earning passive income from borrowers’ repaid interests. On that note, Finbold spotted some recent opportunities for investors to consider and earn passive income with crypto in 2024. Staking crypto to earn passive income in 2024 When staking as validators or delegators, investors contribute to PoS networks’ decentralization and security while earning passive income. This income is usually from a combination of tokens’ issuance, inflating the supply, or transaction fees. Yet, each cryptocurrency has a unique model with advantages and disadvantages that investors must consider. One important aspect is the “Real Staking Reward Rate,” particularly measured by StakingRewards.com, which weights the rewards with inflation. Popular staking cryptocurrencies like DYDX, Celestia (TIA), and Bittensor (TAO) are among the worst to stake, considering this metric. This is important because a high supply inflation or unlocks can offset the protocol’s promoted reward rate with strong selling pressure, diluting the stakeholders’ value over time, similarly to how a country’s inflation can offset investments’ raw results. Other examples are Solana (SOL), Sui (SUI), and Aptos (APT), with real reward rates of 1%, -5%, and -4%, respectively. Finbold has reported how Sui’s monthly unlocks can punish unaware investors,…

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Filed under: News - @ October 27, 2024 2:25 pm