Unlike traditional banking products that hardly pay any interest, there is no shortage of opportunities to generate passive income with cryptocurrencies, be it with NFTS, real estate (tokenization), masternodes, staking, or loans.
But how about if you are just starting out in this world and just want to generate some passive income without complicating things?
That’s exactly what we’re about to explore in this article with the 5 best cryptos to earn passive income just by owning them on your wallet or on an exchange.
This article is intended for beginners, as we only talk about PoS coins that do not require special knowledge or expensive equipment (unlike mining, for example).
1 – Pancake Swap
At the moment, PancakeSwap is the most popular platform on Binance Smart Chain and one of the most popular DEX, which is one of the reasons why CAKE is considered one of the best cryptos for staking.
PancakeSwap is an automated market maker (AMM) on Binance Smart Chain, allowing users to seamlessly exchange tokens and earn CAKE passively. Simply by using pancake swap you receive their crypto CAKE which currently sits at #54 in terms of global market cap ($12.70)
2 – Polygon (Matic)
We were hesitant to rank it in the first place because this coin also solves Ethereum congestion problems (allows to manage 7000 transactions per second against 15 for Ethereum) and has a strong ROI. You can also stake it on Binance.
Analyst Justin Bennett believes Polygon is in for a near 100% jump in 2022:
“Ultimately, anytime a market is testing its all-time high and also carving higher highs and higher lows like this, it is technically a bullish structure to the market. But at the same time, you have to understand that $2.70 is a confluence of resistance and therefore, it’s going to be a very strong level in that MATIC needs to get above it on a daily closing basis to flip that area to support.“
POLYGON ($2.86) currently #14 in total market cap.
3 – Sandbox
By now you’ve probably heard of the Metaverse, where millions of dollars are spent on virtual lands, boats, and clothing. Well, SAND is one of the major projects based on MetaVerse, and it is still in its early days so it is essential not to miss this opportunity.
SAND ($6.65) currently #32 in total market cap.
RELATED: Ethereum vs Solana in 2022
4 – Cardano
Even if the ROI is not as important as the other coins we have listed, for us, Cardano (also known as the Ethereum Killer) is well worth its place on the list. Indeed, Cardano is not only a coin but a whole ecosystem that will supposedly be more seamless than Ethereum.
CARDANO ($1.56) currently #6 in total market cap
5 – DAI
DAI is the fifth on our list as it is available on Binance, a completely secure platform and offers a high ROI. But more than that, the project is growing rapidly and is essential for the future of decentralized finance and the limits that ETH poses.
Dai is a stablecoin cryptocurrency which aims to keep its value as close to one United States dollar as possible through an automated system of smart contracts on the Ethereum blockchain. Think of Tether.
DAI ($1.01) currently #23 in total market cap.
Staking your coins on a PoS blockchain network is an excellent way to earn passive income and generate high returns. These investments come with less risk than most alt coins and can earn you decent dividends.