Top 5 Cryptocurrencies To Earn Passive Income In 2023 - Our Picks
Looking for the best way to earn passive income in 2023? Here are our top picks of the best 5 cryptos to add to your watchlist for generating a passive income.
Ethereum - One of the top smart contract platforms to earn passive income in 2023.
Chainlink - A must-buy oracle network.
Polkadot - Passive income is one of the best perks of holding DOT tokens.
Uniswap - The leader in the growing decentralized exchanges sphere.
Shiba Inu - The most popular meme coin to earn passive income in 2023.
A Closer Look At The Top 5 Cryptocurrencies To Earn Passive Income In 2023
Cryptocurrencies have always been a choice for earning passive income for investors. It helps you generate revenue without actually being actively involved in the process. The blockchain sphere has now become a great hub for making passive income, and investors are not missing their chance.
Currently, the crypto market is grappling with one of the deepest and most prolonged bear markets in its history. Therefore, earning passive income has never been higher on the agenda of numerous traders and investors. These income opportunities can help offset losses during a market downturn.
Passive income refers to money generated through platforms that individuals do not actively participate in. Individuals would invest their money in specific platforms or crypto investment strategies and watch them profit over the long run. Let's take a closer look at these tokens.
Ethereum (ETH)
ETH has been caught up in the crypto whirlwinds since the beginning of the year. A major catalyst for Ethereum lately was the completion of the Ethereum Merge, the network’s much-awaited shift to the Proof-of-Stake system. This aims to make the network more energy-efficient, cutting energy usage by around 99.95%.
Apart from its functionality and use cases in DeFi, NFT, and the Metaverse, Ethereum is also one of the top cryptos to earn passive income in 2023. From staking and lending to yield farming, there is no shortage of ways for meaning passive returns on your ETH holdings. The token holder can earn staking fees by running their validator node to process transactions and help secure the network.
ETH also seems to be a good long-term investment option as the team has already announced plans to eventually implement more improvements and enhance the network to handle almost 100,000 transactions per second and orders of magnitude more than the 12 to 20 TPS that it can handle in its current state.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Chainlink (LINK)
The major purpose of Chainlink is to facilitate the seamless interconnection of smart contracts. Chainlink’s smart contracts can integrate real-world data to execute agreements that require proof of performance. The crypto’s partnership with multiple platforms like Bitcoin, Synthetix, Google, and many other firms enhances the platform's credibility, making LINK the best long-term investment option.
Staking is one of the best ways to earn passive income with Chainlink, other than holding the crypto for long terms. The best and most often tested way to stake LINK is on any cryptocurrency exchange. Token holders can stake LINK using DeFi platforms like Aave. It is also possible to make a commission through CeFi lending services, like Nexo and BlockFi.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polkadot (DOT)
Polkadot allows distributed ledgers to become more scalable, to better perform specialized use cases, collaborate, self-govern, and upgrade without requiring traditional hard forks. It is a sharded bridge-like protocol aiming to keep blockchains connected, transfer currency, and pool security, everything under a single umbrella. Merging diverse blockchains enhances their strengths and diminishes their weaknesses.
DOT is one of the best cryptos to earn passive income, as it helps investors generate massive returns over the long run. The crypto’s unique and innovative Parachain technology opens new opportunities for developers. Alos, since DOT employs a Proof-of-Stake protocol to validate transactions, users can also earn rewards by staking DOT tokens.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Uniswap (UNI)
Uniswap has established itself as a go-to investment for several crypto enthusiasts lately. UNI could be the best token to earn passive income in 2023 as the crypto’s Automated liquidity pools provide a unique passive income stream to buy and hold for investors.
Since Uniswap is built as a decentralized finance protocol, Uniswap has become the largest decentralized exchange (DEX) in the world. The crypto has become a core building block of the way crypto investors facilitate peer-to-peer transactions in the crypto world.
One of the unique aspects of Uniswap, the decentralized exchange, is liquidity pools. Crypto investors can lock tokens in pairs of tradable securities to earn passive income. Each successful trade using an investor’s liquidity pays out a 0.3% transaction fee to the investor staking their crypto.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Shiba Inu (SHIB)
The Shiba Inu, the most popular meme coin, has been in the limelight for numerous reasons, although its current value is not very high. The crypto’s entry into the metaverse, with the launch of Shiberse, is one key catalyst for the growth of SHIB.
However, staking is not only the way to earn passive income with your SHIB tokens. A new way to earn revenue is through the newly launched burn portal, by the ShibaSwap exchange. Burning of SHIB tokens from circulation removes them from circulation, making the coin scarcer, and pushing its value higher. SHIB holders would earn a reward for burning their tokens.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Bottomline
Generating passive income is one of the biggest perks of crypto investments. As investors are well aware of the advantages of generating incomes, especially in the current bear market, these top 5 cryptos to earn passive income in 2023 could be worth adding to your watchlist.
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