Crypto Tax season is here. Start planning with our free playbook →
Follow Us

The Best Way to Earn Passive Income with Cryptocurrency in 2024

Table of Contents

Learn the top techniques for earning passive crypto income in 2024 including staking, DeFi lending, crypto mining, and more.

The Best Way to Earn Passive Income with Cryptocurrency in 2024

In 2024, cryptocurrencies will continue opening up new opportunities to generate passive income streams. With the right strategies, you can earn crypto without needing to actively trade or work.

This guide will walk you through the top techniques for earning passive cryptocurrency income this year. We’ll cover options like staking coins, lending on DeFi platforms, mining rewards, affiliate marketing, and airdrops.

By the end, you’ll know exactly which passive crypto income stream is most profitable and beginner-friendly for 2024. Let’s dive in!

Staking Cryptocurrencies for Rewards

Cryptocurrency staking has quickly become one of the most popular ways to generate passive income.

Staking allows you to earn rewards on your crypto holdings just for holding coins in a suitable wallet or on a staking platform. It works by helping validate transactions on proof-of-stake (PoS) blockchains.

When you stake coins, you commit to locking up a certain amount of that cryptocurrency to act as a validator on the network. In exchange, you earn more of that coin as a reward for supporting the network.

Think of it as earning interest on your crypto savings account!

Some of the top coins for staking right now and in 2024 include:

  • Ethereum (ETH) – Between 5-10% APY
  • Cardano (ADA) – Around 5% APY
  • Polkadot (DOT) – Up to 20% APY
  • Solana (SOL) – 7-10% APY
  • Cosmos (ATOM) – Around 10% APY

The estimated rewards can vary based on factors like the total amount staked on the network and validator commission rates. But you can expect to earn anywhere from 5% – 20% APY by staking top coins.

To start earning staking rewards, you’ll need to:

  1. Buy staking coins like ETH, ADA, etc and hold them in a compatible wallet.
  2. Choose a staking pool or validator to delegate your coins to.
  3. Stake your coins in the wallet or on the platform.
  4. Earn rewards automatically distributed to your wallet – that’s it!

The process takes less than 10 minutes for most coins. And your staked crypto continues compounding rewards over time with no extra effort needed.

Lending Cryptocurrencies on DeFi Platforms

Decentralized finance (DeFi) platforms have also created new opportunities for earning passive crypto income.

DeFi lending allows you to earn interest on your coin holdings by depositing cryptocurrencies with DeFi protocols. You receive rewards in exchange for letting borrowers use your funds.

Rates can vary by platform and asset, but it’s possible to earn 5-15% APY or even more by lending crypto.

Some top DeFi lending platforms to consider in 2024 include:

  • Aave – Earn up to ~10% on tokens like ETH, MATIC, stablecoins
  • Compound – Interest rates around 5-10% for major coins
  • Anchor Protocol – Offers ~20% APY on stablecoin deposits

However, DeFi lending does come with potential risks to consider:

  • Technical risks – Bugs in smart contract code leading to loss of funds.
  • Market volatility – Drops in collateral value can cause liquidations.
  • Regulatory uncertainty – Ongoing development of DeFi regulations.

With the right precautions, these risks can be managed. Limiting your deposit size, not lending all funds at once, and using established protocols are good ways to be cautious with DeFi lending.

If all goes smoothly, you could realistically earn an extra $1,000+ this year through crypto lending depending on your deposit size.

To get started, you’ll need to:

  1. Get cryptocurrency to deposit – ETH, stablecoins, etc.
  2. Choose a DeFi platform like Aave, Compound, etc.
  3. Connect wallet and approve token deposit.
  4. Deposit crypto and start earning!

DeFi lending can be a great way to maximize earnings on your existing crypto assets through passive income.

Earning from Crypto Mining

Cryptocurrency mining allows you to earn crypto by using computing power to help process blockchain transactions in proof-of-work networks.

Miners compete to solve complex math problems and get rewarded with newly minted coins for each problem solved.

Popular coins to mine include:

  • Bitcoin (BTC)
  • Ethereum Classic (ETC)
  • Monero (XMR)
  • Litecoin (LTC)
  • Ravencoin (RVN)

You’ll need a specialized mining rig with GPUs or ASIC miners to efficiently mine crypto. Expect to invest at least $3,000 – $5,000 to build a capable mining setup.

With current mining difficulty rates, here are some estimated profits in 2024:

  • Bitcoin – $10 – $15/day per mining system
  • Ethereum Classic – $3 – $5/day per rig
  • Monero – $5 – $10/day per device

The costs of mining hardware and electricity usage can eat into your margins. But if done efficiently, mining can produce over $150/month in passive crypto income with just 1-2 systems.

Here are the steps to start mining cryptocurrency:

  1. Get mining hardware – GPUs, ASIC miners, etc.
  2. Choose mining software – Ethermine, Cudo Miner, etc.
  3. Configure software with your wallet.
  4. Start mining! The software does the work in the background.
  5. Get regular payouts sent to your wallet.

While staking avoids specialized hardware requirements, mining offers potentially higher returns for those willing to invest in the right equipment.

Crypto Affiliate Programs

Affiliate marketing presents another more indirect method for earning passive cryptocurrency income.

Crypto exchanges, wallets, DeFi platforms, and other crypto companies often offer affiliate programs. You get paid for referring new users or customers to their platforms.

Payouts are typically made in the platform’s native token or coins like BTC or ETH.

Some notable crypto affiliate programs for 2024 include:

  • Coinbase – Up to $100 in BTC for new user referrals
  • – Earn up to $400 in CRO per sign-up
  • BlockFi – Get up to $100 in BTC per funded account
  • CoinTracker – $40 in BTC for each new user
  • MyConstant – Up to 20% revenue share on borrower fees

Tips to maximize affiliate earnings:

  • Promote heavily when crypto market conditions are favorable.
  • Provide helpful resources guiding users to sign up.
  • Create landing pages optimized for each program.
  • Negotiate higher commissions once you drive significant volume.

With some hustle, you could make $500 or more per month through crypto affiliate marketing. It takes more effort than staking or lending but provides uncapped earning potential.

Cryptocurrency Airdrops

Airdrops represent free crypto coins projects distribute to the community to raise awareness and use of their platforms.

You simply need to perform simple tasks like following the project on social media or downloading a mobile app to qualify for airdrops. The free coins get sent directly to your wallet.

Notable upcoming airdrops for 2024 include:

  • Uniswap – 50 UNI tokens for prior Uniswap users.
  • dYdX – Regular airdrops for using dYdX exchange.
  • Loopring – Airdrops for testing new Loopring wallet features.
  • Aptos – $200 in APT staking rewards for early adopters.

The estimated value of major airdrops totals over $500+. But you’ll need to actively research and claim dozens of smaller airdrops to maximize potential earnings.

Joining airdrop notification services like AirdropAlert can streamline discovering upcoming airdrop opportunities.

Start Investing in Cryptocurrencies

While less passive than other methods, investing in cryptocurrencies still represents a smart long-term strategy for growing crypto wealth.

Rather than actively trading coins short-term, you invest and hold coins over an extended period. This allows you to benefit from the long-term appreciation of crypto assets as adoption increases.

Some cryptocurrencies with promising outlooks for long-term holding include:

  • Bitcoin (BTC) – Digital gold, store of value
  • Ethereum (ETH) – Leading smart contract platform
  • Solana (SOL) – High-speed blockchain for dApps
  • Polkadot (DOT) – Next-gen multi-chain protocol
  • Chainlink (LINK) – Decentralized blockchain oracle

Tips for investing in crypto:

  • Diversify across 5-10+ coins to manage risk.
  • Dollar cost average over months to build positions.
  • Hold for 1-5+ years to realize gains.
  • Stake coins while holding to compound gains.

With crypto’s historical ROI of 200%+, patient holders could realistically double a $10,000 investment in 2-3 years through long-term investing.

The Verdict: The Best Passive Crypto Income Stream for 2024 Is…

After reviewing various options, here’s a summary of the top passive cryptocurrency income streams for 2024:

  • Best for Beginners – Staking coins through wallets and platforms offers the simplest low-risk income stream. Just stash coins and earn 5-20% APY on holdings.
  • Highest Earning Potential – Lending on DeFi can offer the largest returns upwards of 20% APY but has added risks to manage.
  • Most Involved – Crypto mining creates higher passive income than staking but requires significant upfront investments and maintenance.
  • Uncapped Earnings – Affiliate marketing offers no limits on potential earnings but requires the most effort. Promoting at scale is key.
  • Bonus Income – Airdrops provide nice one-time dividends for almost no work but don’t produce recurring income.

Given its ease and low barrier to entry, cryptocurrency staking emerges as the best passive income stream for 2024. Top staking coins provide strong rewards on holdings with minimal time commitment or technical requirements.

Anyone looking to earn passive income with crypto should start by researching and staking coins like ETH, ADA, SOL and more using their wallets or platforms like Coinbase and Kraken.

As staking becomes more common and competitive over time, DeFi lending protocols like Aave and Anchor could become more attractive for their high APYrewards despite added complexity.

But for hands-off, uncomplicated crypto income this year, staking coins takes the top spot. Take advantage of staking’s flexibility and ease of use to turn your crypto holdings into a steadily growing source of passive income.