Top Passive Income Tokens: Binance Coin (BNB), Pancakeswap (CAKE), Fantom (FTM) And Polygon (MATIC)

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Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Last Updated October 3rd 2022
10 Min Read

Currently, the global crypto market is gaining renewed traction as more people begin earning passive income through crypto assets. The market has now become a great opportunity hub for making passive income, and people are not holding back.

But for those unaware, passive income means money generated through ventures in which individuals do not actively participate or get involved. In most cases, individuals will invest their money or digital assets in a specific platform or crypto investment strategy and watch them profit. In other cases, the earnings may be fixed and predictable.

One typical way of welcoming such returns with limited involvement within the crypto industry is called "HODLing," which is buying & holding crypto. This basically means an investor purchases and stores a digital asset with the goal that it will increase in price over the years.

Many crypto projects extend this opportunity across the crypto industry, especially to low-risk investors. So, if you're looking to invest in some of the top passive income cryptocurrencies, Binance Coin (BNB), Panakeswap (CAKE), Fantom (FTM) and Polygon (MATIC) are some solid choices.


Top Passive Income Cryptos: Our Picks

Here are our picks for the top passive income cryptocurrencies. Find the detailed reviews of these projects in the next section.

  • Binance Coin (BNB) - Best utility crypto to earn passive income
  • Pancakeswap (CAKE) - Growing altcoin full of potential to generate massive returns
  • Fantom (FTM) - One of the emerging stars in the DeFi sector
  • Polygon (MATIC) - Thanks to liquid staking, MATIC is the best token to earn passive income


Binance Coin (BNB)

Binance has emerged as a leading cryptocurrency exchange with access to numerous cryptocurrencies, advanced features, and low fees. Many crypto experts deem this exchange a good fit for advanced crypto traders looking to access a wide range of features and currencies.

But, it's not just for advanced traders. The platform is known for its low trading fees, which allows it to welcome all kinds of crypto investors globally. The trading fee is usually less than 1%, much lower than most popular crypto exchanges.

So, this brings us to making passive income. Binance offers users multiple ways to make an income, but with varying levels of risk. You can earn around 30% APR on specific cryptos through its staking program or place the assets in a flexible savings account to accommodate lower but consistent rates. Investors usually earn passive income through the platform's utility token called Binance Coin (BNB).

Moreover, the platform has numerous staking options and pays better rates than most crypto exchanges. Hence, many investors stake a certain amount of their assets in Binance. While advanced investors usually try to make an income by adding liquidity to token pairs. However, this carries another set of risks.

Known for the low transaction fees, numerous accessible currencies, features, and more, Binance has gone on to become a leading name in the crypto exchange platform. And as it continues to grow, the potential for the growth of passive income in BNB will also rise and grow. So, it's an excellent investment for those interested in top-passive-income cryptocurrencies.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Pancakeswap (CAKE)

PancakeSwap is a non-custodial BSC (Binance Smart Chain) platform that allows profitable farming and crypto exchange using BEP-20 tokens. The project also provides its CAKE token comparable to SushiSwap and Uniswap. However, unlike these ETC-based exchanges, the PancakeSwap platform has lower fees and faster transactions. 

Unknown developers launched this network about two years ago, on September 20, 2020, with support from Binance. And in February of last year (2021), the platform became one of the largest crypto exchanges within the DeFi segment trading volume-wise. 

This platform's rise is partially due to its vast collection of features such as token swaps, liquidity, farming and provision, lottery, NFT marketplace, staking perpetual trading, and launchpad. This ranks PancakeSwap among the few DEXs that allow users to access numerous financial products within a single interface to facilitate a better overall DeFi experience. 

Moreover, PancakeSwap users can farm their additional tokens, such as SYRUP. Platform users can also deposit LP tokens and bet CAKE tokens to obtain SYRUP. This token also acts as a governance token for the exchange platform. 

While the tokens, speed, interface, and features are some of the most essential pieces behind the platform's drive, another key feature of the PancakeSwap platform is earning passive income. 

Based on BSC, investors can utilize the CAKE token for yield farming or staking within the platform. Despite the lack of user acceptability during its initial phase, the trust and effort put into making it a credible platform is paying off now. Currently, CAKE is being seen as a sturdy investment with a high possibility of strong growth.

It has undoubtedly emerged as a leading platform and has also been ranked as a top-gaining crypto in 2022. What's more? With PancakeSwap's ongoing upgrades and developments, the platform will likely reach its ATH soon.

CAKE can relatively be considered a fruitful investment and can be added to your top passive income cryptocurrencies in 2022. It shows a promising profile with low to medium to high risks, which allows users to explore various investment opportunities. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Fantom (FTM)

Fantom is one of the top layer-1 blockchains on which users can stake FTM to earn passive income with crypto holdings. The network is highly scalable and EVM-compatible so that users can deploy and run Ethereum dApps on Fantom. Known for its speed and inexpensive layer-1 blockchain, Fantom is a high-throughput blockchain with an open-source smart contract platform. It leverages the best aspects of Ethereum’s smart contracts and blends numerous interesting features into it. Developers can monitor the accuracy of transactions, generate evidence based on behavior, and also execute pre-programmed instructions efficiently using Fantom smart contracts. 

Fantom is one of the best picks for the top passive income tokens, as it offers multiple lending options, including fixed-rate and variable-rate lending. Fantom also has a staking program, allowing users to earn interest on their digital assets. Investors can actively participate in safeguarding the network by staking FTM and, at the same time, earn passive income as FTM rewards. Staking a crypto token means locking it up for some time and placing it in the owner’s wallet.

In addition to its native blockchain network, Fantom could also be staked across multiple platforms like decentralized exchanges (DEX) and custodial blockchains. The crypto offers a flexible and dynamic ecosystem facilitating the staking of numerous DeFi tokens to earn passive income on your investment. Fantom is slowly becoming the heart of the app development world with countless interesting projects like SpookySwap built on it, improving its staking rewards and passive income opportunities. 

The best feature of Fantom is its self-build consensus mechanism from scratch. The mechanism is called Lachesis and is touted to have a much higher capacity than the traditional Proof-of-Stake algorithm. This unique mechanism helps to finalize transactions in less than two seconds and offers better security than contemporary crypto platforms, boosting Fantom’s adoption rate. 

However, Fantom continues to attract investors with its numerous coalitions and partnerships. The billionaire investor and founder of HyperChain Capital, Stelian Balta, have added another $15 million to Fantom, giving the crypto strong support. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Polygon (MATIC)

Polygon has positioned itself as the best crypto with sustainable growth, high transaction speed, low costs, and excellent security. The basic idea behind Polygon is the use of its sidechains that process transactions off of Ethereum.

MATIC opens several ways for investors to invest and take leverage of the extremely low gas fees for trading and transferring on the network. Thanks to Polygon Liquid Staking from ANkr staking, earning rewards or a passive income while supporting the Polygon network through staking has never been easier. This unique liquid staking method offers instant liquidity for the MATIC tokens, allowing users to connect staked assets to DeFi and create an opportunity to earn several extra layers of rewards, making MATIC one of the best passive income tokens. Also, since Polygon is a Proof-of-Stake blockchain, users can make passive income by staking MATIC tokens.

In addition, the latest trend in cryptos is earning passive income from NFTs or non-fungible tokens. For instance, Polygon Studios, the gaming and development wing of Polygon, partnered with Unicly (UNIC), a protocol that combines, fractionalizes, and facilitates NFT trading. This coalition is solely focused on helping traders create a high revenue stream with their digital art and collectibles.

Another reason to invest in MATIC is Polygon’s advanced technologies like the zkEVM, which has been referred to as The Holy Grail of Layer 2 Scaling. This advanced technology minimizes transaction costs and enhances throughput on a layer-2 rollup. By leveraging this, developers can seamlessly deploy applications written in Solidity and take advantage of the ecosystem’s robust developer tools.

The crypto also plays a significant role in the development of Web 3.0. The team behind the crypto believes that providing people more control of their digital identities is at the heart of Web 3.0’s promise to empower users over networks.

Several top-tiered companies like Walt Disney have added Polygon for its 2022 Disney Accelerator Program, boosting the crypto’s popularity and value to new highs. Moreover, Polygon is on a mission to build one of the largest dApp ecosystems on the market today, which has already surpassed 19,000 dApps as of April 2022.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Bottom Line

The world of cryptocurrencies is overflowing with opportunities. With a strategic investment plan, research, and patience, investors can achieve a lot in this market. If you are looking for passive returns along with long-term profits, Binance Coin, Pancakeswap, Fantom and Polygon are the best picks for the top passive income tokens.

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