With the dwindling economy, Nigerians are increasingly sourcing means to earn money. While unemployment is at record levels, salary earners can barely meet their daily needs. Currently, there is a pressing need to meet basic living requirements through several needs.
With many chasing side hustles such as ride-hailing driving, others are exploring the amazing world of cryptocurrencies. Nigeria is a crypto-forward country with most of the population directly investing in it and others knowing what it is.
But how exactly can Nigerians earn passively from cryptocurrencies? In this guide, we’ll explore passive income in relation to cryptocurrencies.
The concept of passive income implies that individuals get a certain amount of returns with little to no active participation in the activities involved. The financial industry has, over the years, offered diverse avenues for individuals to make some money.
Your contemporary savings account is designed in a way that you can simply deposit funds and earn on a monthly or annual basis. In the digital world, there are available tools that assist individuals to make money like this.
While this approach to earning some extra bucks may seem less stressful, there are risks involved. Regardless, they are comparably safe.
Staking
This is relatively easy for individuals as it involves just minimal participation. All you have to do is purchase a coin and lock it up for some time. The locked-up funds incur rewards, subsequently, in the form of new coins or transaction charges.
Liquidity Mining
The dominance of decentralized exchanges has made this passive method of earning quite popular. Decentralized exchanges need liquidity pools to improve trades of specific tokens. The tokens are often provided to holders in the community, tagged as liquidity providers. These providers offer their tokens in the pool for smoother functioning of these exchanges and generate passive income in return.
Lending
This method of earning passive income is comparable to that of liquidity mining. This is so because token providers are required to offer their coins in a lending pool. The reward from this action comes from the borrowers who temporarily obtain the coins in the lending pool. This means of earning passive income is quite risky, hence, a need to double-check with the lending operators before investing in them.
Crypto-Based Games
This has to be one of the most interesting ways to generate passive income in the digital currency space. Many digital currency games offer the “Play-to-Earn” feature which allows individuals to participate in gaming activities and earn. Different platforms offer different gaming and earning options such as winning matches to obtain specific NFts and mining resources that you could earn from once you trade them.
Referral programs or airdrops
This is a well-known way for Nigerians to earn passive income. What it entails is that individuals who meet certain set requirements are offered free tokens, majorly that of recent digital currency projects that attempt to circulate their native currency.
