Popular ways to earn passive income with crypto in 2025

Popular ways to earn passive income with crypto in 2025
by Clarence Oxford
Los Angeles CA (SPX) Apr 28, 2025

While cryptocurrencies are known for their substantial gains, there are many other ways to earn money with them beyond the common buy-and-hold strategies. If you prefer hands-on trading, it's completely okay to go for active trading methods; however, passive strategies allow you to grow your crypto holdings without gluing your eyes to the market and going instead at a more relaxed pace. There are some hard-to-ignore reasons why everyone is buzzing around cryptocurrencies as a way to earn passive income, from global accessibility and decentralized control to the significant earning potential.

Regarding the methods to earn passive income from crypto, you can choose from simple strategies, like crypto savings accounts, to methods that require more technical skills, such as mining. And if you've ever come across airdrop news, you may have noticed that you can claim free crypto tokens by completing specific tasks. But the list is longer than that, so without further ado, let's dive into the best crypto passive income methods.

Staking

Crypto staking means using your tokens as collateral to secure PoS networks such as Ethereum and Solana. In general, yields from staking rewards vary from 3% to 6%, but some cryptocurrencies provide more significant yields based on demand. However, there are other ways to stake cryptocurrencies, as some platforms provide staking in which the exchange lends the assets or deploys them in DeFi. If you lock crypto for a particular time frame, the platform will pay a yield. Some of the best cryptocurrencies to consider for staking include Cardano, Ethereum 2.0, and Solana. For instance, with Ethereum 2.0, you can get an estimated return of 5% to 6% yearly, which is safer than other high-risk alternatives in crypto.

The best thing about staking is that it's highly accessible, as it only takes a few clicks on centralized platforms. However, the word "staking" is often used in the broader sense, which can create confusion, so that's something to keep in mind.

Yield farming

If you're seeking higher returns with crypto, look no further than yield farming. This method involves providing liquidity to DEXs (decentralized exchanges), which essentially means depositing your crypto into liquidity pools so you can earn interest (and sometimes tokens) in exchange. Yield farming can sometimes provide massive returns of up to 50% + APY; however, certain risks are involved. For example, when the value of the tokens you offered changes compared to the time when you deposited them, impermanent loss can be a real consequence, meaning that you could end up with significantly fewer rewards. You can find platforms that automate yield farming, meaning that they will do the entire job of taking your crypto and farming it across various platforms to increase profits. But keep in mind that there are no guarantees when it comes to yields, and they can experience wild fluctuations sometimes.

Crypto mining

Crypto mining is one of the most common ways to earn passive income, but it's more complicated than it may seem. This is because you need hardware such as Graphics Processing Units to be able to mine, as these devices are designed to solve complex mathematical problems to safeguard blockchain networks, offering cryptocurrency in return to miners. Bitcoin mining has been incredibly lucrative, but it's essential to have cheap electricity and the right equipment to succeed with it. Mining rings tend to be pretty costly, and as more miners join the network, mining becomes even more difficult. However, with an efficient mining process in place and the right setup, this method of making passive income with crypto can generate significant profits.

Crypto lending

If you don't want to deal with the volatility associated with cryptocurrencies, crypto lending may be the best method to consider when generating passive income. This method involves lending your crypto to borrowers through a platform of your choice - either centralized or decentralized- and earning interest in return. Keep in mind that centralized platforms allow you to earn steady returns without dealing with too much volatility, while decentralized platforms enable greater control and tend to be more transparent, but they may have lower rates. A good rule of thumb before you consider lending is to check the platform's reputation and security. DeFi platforms tend to be riskier, while centralized platforms are more regulated, but they also raise concerns about platform insolvency and the possibility of hacks.

Airdrops

Crypto airdrops have become a common way for blockchain projects to offer free tokens to users. The purposes of airdrops are to improve adoption, create excitement around a specific project, and reward early supporters. If you're looking to earn passive income without a massive upfront investment, airdrops may be the go-to method for you. Throughout the years, many investors have earned considerable returns from airdrops, but remember that not all airdrops can offer such gains, so careful selection is paramount. Relying on airdrops can be exciting, but at the same time, it presents some challenges. For instance, airdropped tokens often see price fluctuations, which can make it challenging to predict whether or not you will make a profit from them. Moreover, fake airdrops are another concern, as some projects utilize them to steal user data. That being said, you shouldn't avoid them altogether if you think they can help you meet your financial goals. The key is to safeguard your personal data, research the projects carefully, and make strategic decisions about when to sell or hold tokens.

Play-to-Earn games

Gaming has long been a way to wind down and have fun, but nowadays, it is more than that. You can also earn passive income via P2E ( Play-to-Earn) games, which enable you to earn NFTs, cryptos, and other digital assets while playing. Some of the most popular P2E games include Decentraland and Axie Infinity, which allow you to earn rewards by building, battling, or participating in the ecosystem. While it can be exciting to play and make money simultaneously, remember that the P2E games market can be volatile. Some players have indeed earned substantial returns in the past, but the model's sustainability is uncertain, and the profitability of the games is linked to the community of the game and the tokens' market price.

The bottom line

If you've been looking for ways to generate passive income with crypto, hopefully, now you will feel more confident to begin. Just remember to do your research so you can entirely understand the method of your choice - ultimately, the key to protecting your profits is playing it safe.