I’m diving into the seven easiest ways to make crypto passive income with tried and tested methods that I personally use and have tested and can confirm work that make me anywhere from a couple of hundred extra dollars a month to a couple of thousand extra dollars a month. Most people think that crypto’s dead and that there isn’t any money to be made, but that couldn’t be further from the truth. In fact, I currently make thousands in passive income from various different crypto strategies every single month with things that literally anyone could do with some basic experience in crypto.
And one thing that I learned on my journey from zero income to millionaire in a year and a half is that it pays massively to act and think differently than the average person does. Average people don’t become multi-millionaires; it’s the outcasts, the outliers, the ones that are willing to try things that most people are unwilling to try because they’re too afraid or they just think it’s a dumb idea, or the ones that do things that most people are unwilling to do—those are the ones that experience the results that most people only dream of.
So when it comes to success, when the majority of people say that a given space is dead or going to zero or it’s worthless, that’s usually the kind of place that you’d want to look to find something that is valuable because no one else is looking there. And I have been able to find some insane opportunities. Since the start of the bear market, I’ve had some months where I’ve made over six figures because of my due diligence and paying attention to things that most people aren’t paying attention to. And keep in mind this is all while the broader world has declared crypto dead and that it’s going to zero and that it’s worthless. You know they’re saying that, but meanwhile, there’s a bunch of us out here making a ton of money because we’re just not listening to them and we’re looking where no one else is looking and we’re doing the things other people are too afraid to do.
Strategy #1: Convex
Strategy number one that I’ve been using to make crypto passive income has been Convex. Basically, Convex is a platform built on top of a popular decentralized exchange called Curve. And Curve became popular due to its model which allowed for extremely low slippage when it came to stablecoin swaps. But keeping stablecoins stable is a little bit trickier than it seems. There are a lot of moving pieces that need to be in place for a stablecoin to hold its peg, and probably the most important and the biggest is liquidity.
Imagine a small bucket of water, and if you were to take a large cup and dip it into that bucket and take out some water, what would happen to the water level in that bucket? Obviously, the water level would go down significantly because you just took a large cup and put it into the bucket and took out a bunch of water. Now imagine you had an entire swimming pool, and you took that same large cup, you dunked it into the water, and you took some water out. Obviously, you wouldn’t really affect the water level at all because the pool’s so big, there’s so much water that you dunking that big cup in doesn’t really affect the water level. That, in a nutshell, is kind of how liquidity works.
The cup removing the water would be like the sellers in the market, and the water level would be kind of like price stability. So for stablecoins, they want tons of liquidity so that they can stay really stable, and they attract liquidity by having the best yield on their trading pair. The yield comes from Curve emissions, and Curve gives emissions to the pools that CRV holders vote on. And Convex is basically a platform where you can take your CRV tokens, lock them on the Convex platform, and sort of rent out your vote. And projects come to Convex to bribe token holders in exchange for their vote on their pool. Usually, this process allows those projects to attract more liquidity to their trading pair than it actually costs them to pay out in bribes. So that’s in general how Convex works, and so far, it’s been extremely lucrative for me.
I started with $7,900 invested, and in month one, the value of my Convex climbed to $9,642, and I made $344 in rewards or about 4.5 percent. In month two, my $7,900 was now worth $12,896, and I made another $362 in rewards from bribes. Month three, my $7,900 was worth $11,188, so it’s down a little bit from month two, and I made about $273 in rewards. In month four, my $7,900 was worth $10,896, and I made around $284 in rewards, or an average of 3.5 percent a month spread out over the four-month period.
Strategy #2: GMX
Strategy number two is GMX. , so I’m not going to really dive into how GMX works, what it is, and where the yield comes from.
I started with $5,678 total. In month one, I made $70 in rewards, and my GMX sort of went up in value a little bit, but it wasn’t really a ridiculous amount or anything. In month two, my GMX went up to $6,619 in value, and I made $88 in rewards. Month three, my total stayed about the same, and I made around $73 in rewards. Month four, though, my total absolutely skyrocketed, going from $5,678 all the way up to $11,815, and I made $106 in rewards. Month five, my total went up to $12,200, and I made $101 in rewards. And lastly, month six, my total went down slightly to $11,916, and I made another $89.19 in rewards.
So rewards-wise, I’m making around 1.7% a month, which is pretty good with the strategy, but I’m also making massive gains from just holding the GMX token, which has appreciated in value over the last six months.
Strategy #3: Rapt Youth (Wrapped Bitcoin)
My third strategy is Rapt Youth (Wrapped Bitcoin) on UniSwap V3. Basically, UniSwap V3 has some amazing yield opportunities for those who know how to go out and farm them, but obviously, it’s super complicated to know how to do this well, and you’ve got to stay on top of it. Dyson takes these complex strategies and makes them really easy so that anyone could just one-click jump into them.
I deposited $1,746 into the Wrapped Bitcoin/Default two months ago. In month one, I actually lost money, with my overall total going down to $1,643, and they said in their Discord that they had some bugs with the vaults because it was a new product that had just been launched. But they had fixed those vaults during that one-month period, and that month two should look a lot better.
In month two, the results did dramatically turn around. My $1,643 turned into $2,128, which is a 29% gain in a single month, or from my original investment, represented an average gain per month of 5.5%. Still, I’ve only been testing this for two months, and it’s impossible to say how consistent these results will be without testing for a longer period of time.
Strategy #4: Cake (Pancake Swap)
My fourth strategy is Cake (Pancake Swap), and the AutoCake strategy is another one that I’ve covered in-depth a ton already. Pancake Swap is a DEX on BNB Chain that’s slowly been expanding to other chains, including Ethereum and Aptos. Cake is the platform token, and it has a ton of different purposes and use cases, but the big thing is that it directly benefits from the growth of the Pancake Swap platform. And recently, a vote was passed to make the Cake token deflationary with an aggressive timeline to dramatically reduce Cake commissions over the next six months.
I locked $10,295 four months ago for 52 weeks in the Pancake Swap AutoCake Vault. In month one, my $10,295 was worth $11,422 with $485 in Cake profit. In month two, it went up to $13,560 with $556 in Cake profit. In month three, it went down slightly to $13,072 with $472 in Cake profit. And in month four, it went down again to $11,813 with $404 in Cake profit.
Strategy #5: Stoic Meta
Strategy number five is Stoic Meta. basically, to give you a really quick summary, it’s an AI that uses machine learning and high-quality analyst data to try to predict what will happen in the future with the market. And then based on those predictions, it makes trades and deploys various strategies.
I deposited $30,000, and I get to keep the extra $10,000 if I want to decide to withdraw that, or I can just let it keep going or do whatever I want. I didn’t have to sign anything; I didn’t agree to anything. There’s actually literally no formal arrangement whatsoever. This was just a way that I could test it because I’m a US-based citizen, and US-based citizens can’t access the Binance exchange, and I couldn’t test it otherwise.
My first month using this, it went from $30,000 to $40,000, and it was a super lucrative source of passive income. Basically, on the GMX platform, GMX token holders earned 30% of the platform fees that the platform makes, and GLP token holders earned 70% of the fees the platform makes. The really big difference that I found testing both of them is that GMX tends to appreciate in value a lot more. So like the price of GMX, the underlying token tends to. I actually lost money month one testing this, in month two, I made a few mistakes recording my results on this experiment for month two, so I actually don’t have any results for month two.
Month three, the value of my GLP went down even further to $5,840, and I made $137 in rewards. Month four, the value of my GLP went back up to $6,436, and I made $116 in rewards. Month five, the value of my GLP went up to $6,755, and I made $156 in rewards, mostly paid out in ETH, and it’s completely separate and deposited into my account. And then the GLP value is fluctuating over time.
Strategy #6: Staking ETH
My last strategy is staking ETH to earn passive income. I really like this strategy for a couple of different reasons, and I actually think it’s one that most people completely misunderstand and underestimate. To me, it is by far potentially one of the most lucrative strategies in crypto passive income that there is currently, just holding ETH.
Now, e-staking allows you to earn upside ETH appreciation, but it also allows you to earn staking rewards for securing the network. And ETH staking rewards are between 4 to 6 percent annually. And while 6 percent might not be massive, especially compared to some of these other passive income strategies that are earning almost that much a month, the gains overall can actually be much higher because of the lower risk factor and the amount of capital you’re able to allocate to it.
For me, I have a substantial amount of money in my portfolio versus 6 percent on 1 percent of my portfolio. And if you don’t understand what I’m saying, you should take some time to dive into position sizing and why it’s important. I love trying risky crypto projects and risky passive income ideas, but I only allocate a very, very small percentage of my portfolio into these various ideas. I’m not above DJin plays, but I do it smart, and I’m careful with my risk management. That’s why I always say it’s really dumb to just copy strategies.