How to Generate Passive Income with Cryptocurrencies

Savings, Lending, Staking & Farming with CeFi & DeFi

Col Jung


A strong passive income can liberate you to live the life you want. Image credit: SHansche (Getty Images)

Edit: See my YouTube channel for crypto passive income videos.

Why let your hard-earned dollars languish in ordinary bank accounts when you can grow them at 5–15% just by converting them to stablecoins?

The secret sauce of financial independence is the power of compound interest.

In this article, I’ll give you a guided tour of how to generate passive income across all corners of the cryptocurrency space, including:

  • Saving USD, BTC & ETH on BlockFi, Celsius & Nexo (5–10% APR);
  • Lending ETH, MATIC and AAVE on Aave Polygon (4%+);
  • Staking crypto in DeFi using Uniswap & PancakeSwap (5–1000%);
  • Farming on ETH and Binance Smart Chain & staking in LP vaults (for up to 20,000% APY)

There are opportunities that cater for all experience levels and risk profiles.

My sources of cryptocurrency passive income. I invest across all corners of the crypto space partly to diversify away a set of varied risks. Note: The “Crypto earned” column is indicative for my own portfolio only. These blockchains & platforms are capable of earning wider variety of tokens than shown. For instance, BlockFi & Celsius supports 13–38 cryptocurrencies alone, even though I’m using them exclusively for BTC. The possibilities explode once we get into DeFi.


New to cryptocurrencies? I have guides here, here, here & here.

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An analysis for passive income on the Binance Smart Chain is here.

Finally, I post regular analyses and guides on YouTube.

Get $25 free BTC on Nexo with $100 deposit (link).

1. Centralised Finance (CeFi)

Your money generally enters the crypto space through centralised finance (CeFi) apps and platforms. In 2021, these comprise numerous fintech companies and centralised exchanges on which you can save, lend and stake your cryptocurrencies for a decent return.

The barrier of entry is low, and it’s easy to transfer funds between CeFi platforms and your ordinary bank account.

Well-known CeFi companies & platforms supporting crypto include:

  • Centralised…