Defi Expert Reveals Top 5 Cryptocurrencies for Passive Income

Place/Date: - May 29th, 2022 at 3:31 pm UTC · 3 min read
Source: Gnox

DeFi, or Decentralized finance, is a broad term that encapsulates a variety of financial products built on the blockchain. Not only does it provide you with complete control of your assets, but it also has the potential to generate high levels of yield from investments. The recent global meltdown may have pushed down the TVL, but the future looks bright with the potential of passive income and the appeal of high returns. That being said, DeFi experts are optimistic about these five cryptocurrencies that can make you money while you hold them.

Cardano (ADA)

Cardano is a next-gen, decentralized proof-of-stake blockchain platform that focuses on sustainability and scalability. This consensus mechanism makes it possible to stake ADA on various wallets and exchanges such as Daedalus, Yoroi, Exodus, Binance, or Kraken. The rewards may vary across different platforms, but competitive returns are guaranteed. One can also use ADA to provide liquidity to decentralized exchanges and earn a portion of the swap fee.

Solana (SOL)

Solana is yet another “Ethereum killer” that facilitates low fees, quick transactions, and high scalability. The native asset SOL can be staked on supported wallets like Solflare, Solong, Sollet, or Phantom. The amount of interest you earn will depend on the amount you stake, the state of the network, and the chosen validator. As of May 2022, the annual rewards are somewhere between 6-8%. You may earn more if you add your SOL to liquidity pairs, but it comes with additional risks.

Gnox (GNOX)

Gnox is a highly scalable DeFi earning solution built on the Binance Smart chain. It unveils a new standard in tokenomics, where GNOX investors are rewarded by just holding the token in their wallets. The protocol offers “Yield farming as a service” by investing treasury funds in DeFi protocols and redistributing a portion of rewards to the users. In addition to that, 1% tax on each transaction is credited to holders every 60 minutes. It is currently in the presale phase of development, and long-term holders can expect higher rewards with the growing strength of the treasury.

Uniswap (UNI)

With 25% of daily Ethereum-based transactions, Uniswap is one of the top cryptocurrencies for long-term growth. The decentralized exchange works by creating liquidity pools, and incentives are given to those willing to provide liquidity for a pair. The trading fee charged on each transaction is proportionally distributed to liquidity providers.

Polkadot (DOT)

Polkadot is different in the way that it is built on a nominated PoS mechanism. One can deposit their assets into staking pools as a nominator and receive attractive staking rewards of up to 10% APY. Rewards are distributed on a pro-rata basis of the work, rather than the stake size.

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