Did you know that you can earn passive income with crypto? In fact, many crypto platforms are offering far better interest rates than traditional financial institutions with interest rates in the triple figures for many popular coins.

There are plenty of options when it comes to earning passive income from crypto, so, to help you get started, we’ve rounded up the 5 best ways to earn passive income from crypto.

Crypto interest platforms

Crypto interest platforms essentially work like savings accounts for your crypto - except in most instances the interest rates offered are far higher than you’d find with savings accounts from traditional financial providers like banks, making them a popular option for earning passive income from crypto.

Some of the most popular and trusted options to earn crypto interest include: Fulcrum, Nexo and Binance Earn.

POS staking

Staking is one of the most popular ways to earn passive income from idle crypto assets you’re holding - and there are plenty of proof of stake blockchains to pick from.

Crypto staking involves investors pledging their crypto to help validate transactions on a given blockchain as part of the blockchain’s consensus mechanism.

While running a validator node is a bit more technical, with most blockchains, there are simpler options for staking your crypto including staking through a centralized exchange and delegating your crypto to stake using a non-custodial wallet.

Some of the most popular and trusted options to earn POS crypto interest include: Aave and Compound Finance

Liquidity provision

Liquidity providers provide a vital function for dApps, as without them there would be no crypto for investors to trade or otherwise transact with on the platform. And they’re rewarded for their service with a percentage of the fees, as well as sometimes other tokens - like governance tokens. This is also sometimes known as liquidity mining, but it’s the most popular way to earn passive income from crypto in the decentralized space.

It’s easy to become a liquidity provider for decentralized exchanges and other decentralized platforms. All you need to do is have a non-custodial wallet, go to the app you’d like to provide liquidity for, find the pool you want to provide liquidity for, and connect your wallet. You’ll generally need to provide two tokens for a given pool, for example, USDT & ETH.

Once you’ve added your liquidity to the pool, you’ll usually receive liquidity pool tokens in return, representing your capital in the pool. Generally, these LP tokens will accrue value as you earn fees related to the pool, but depending on the protocol you may also earn additional tokens. When you want to remove your capital, you’ll just trade these tokens back for your crypto. Some of the most popular platforms to provide liquidity on include: Uniswap, SushiSwap and PancakeSwap.

Airdrops

Crypto airdrops represent the free distribution of tokens or coins within the cryptocurrency community that are sent to targeted wallet addresses. In most cases, crypto airdrops are initiated to reward loyal project users or as a shilling attempt to market the project.

Besides coins and tokens, even NFTs are airdropped as an attempt to market projects or reward users. Crypto and NFT airdrops also make the projects more decentralized, ensuring that the community holds a sizable chunk of the offerings.

To earn steady passive income, you must keep track of upcoming airdrops for the given year. One of the more anticipated airdrops was Arbitrum’s native ARB crypto, with over 42 billion tokens claimed within the first 60 minutes of the airdrop event going live. There will be many more top airdrops waiting for us in 2025. Some of the most popular platforms to provide liquidity on include: Airdrops.io and Coinatory.

Crypto mining

Cryptocurrency mining is more personal to the blockchain ecosystem than staking. Bitcoin, the first commercially successful cryptocurrency and consistently holding the largest market share, still adheres to the crypto mining proof-of-work consensus. The “work” in proof-of-work can be identified as mining.

Even though Bitcoin supports BTC mining, there are other altcoins that can also be mined. Mining crypto is an energy and cost-intensive process. However, the end result is the ability to earn a steady passive income.

In case you want to set up your own rig for mining Bitcoin from home, you must consider the energy-specific costs and the fact that it is time and cost-intensive to build a mining rig from scratch. Popular mining coins are Bitcoin and Monero.

Start Lending Crypto With Fulcrum Today

Crypto lending presents a great opportunity to generate passive income on your idle digital assets. By understanding how it works and the potential yields, you can make informed decisions to maximise your earnings.

Ready to take advantage of crypto lending? Register an account at Fulcrum to securely lend your Bitcoin (BTC), Ethereum (ETH), USDC, USDT and other crypto assets and start earning interest.

Best Interest Rates: Enjoy best yields on the market for a variety of cryptocurrencies.

Full Insurance: Benefit from robust security measures to protect your assets and full insurance.

Regulated: We are regulated by Swiss financial authority FINMA.

Don't miss out on the opportunity to grow your crypto holdings. Join Fulcrum now and start earning today!