I love writing about passive income as it's the goal of many and honestly I don't blame ya. No more working and just living off the work your money does for you! Sounds great right?

While there's no real totally passive income there's always time, money and effort that has to go into it. Does crypto offer up ways to build passive income like transitional means? It does and today we are going to go over a few of the tops.

*This article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks.

Inflation

A number of tokens offer up some very interesting yields. For example hive blockchain offers up around 11% if you curate with the account. There's also others like Solana and of course some random meme projects. But what you have to realize is this yield is just massive inflation on the token. It's not coming from fees, or interest from loans etc. It's just flat up inflation like the money printer go brrrrrrrr from the government.

Keep this in mind with any token you're looking to get involved with as that inflation rate just like a high dividend rate on a stock can quickly erode the core price of the token (or stock).

Now a pretty good place to see inflation across many cryptos and their yields would be Staking Rewards Proof of Stake page this page will list most of your POS (Proof of stake) reward tokens a long with details about each. By clicking on the one you're thinking about staking you can start to see the break down of where those rates are coming from. In terms of normal print inflation from the blockchain and then a general but always moving reward rate for the liquidity provided.

Ways To Stake

Liquid

This staking method grew a lot in popularity with LIDO. It allowed people to stake their Ethereum to earn the node inflation but then to get a liquid token that could be added into defi etc to earn even more rewards. So yeah you can see why that would be so popular. Why only get 2% when you could get 4%! The down side to this is it greatly centralizes the blockchain to these few companies like LIDO.

Centralized

Some exchanges such as Coinbase offer staking rewards as part of their wallets (or accounts) Simply tell them you want it staked and you'll earn some of the APR for that token. It will however be less than if you did it yourself but the ease of being able to do so seems like a lot of people are willing to do so. This however again greatly centralizes the blockchain into a few companies.

Self

This is the best way of which people should be doing but it's often the most complicated as many people who own assets don't understand the tech, hardware etc that's required to run the node themselves. This is why proof of work was so good until ASIC came along. It allowed everyone with a computer to mine and contribute to the network. But then pools came along when it got too hard to solo mine. As you can see this is always an issue with crypto blockchains the decentralized nature of it all always goes out the window for ease of use over anything else.

Liquidity

Ah the infamous word that is often thrown around. You'll often hear about why crypto is rallied or crushed because of the amount of liquidity going around. Well as a asset holder you can tap into this liquidity and earn fees along with some pools having other bonuses in them. Now the "safest" of them is pairing two stable coins as the chances of impermeant loss are near zero. However pairing two assets with wild swings in prices can have a major impact via impermeant loss. However this is where you'll need to figure out things and determine of the rewards earned are going to be good enough via the liquidity you're providing.

Posted Using InLeo Alpha