How to Earn Passive Income with Your Bitcoin and Other Cryptocurrencies

This article is from Piao Han Life UL, authored by Hai Sen Du.

Hello, everyone, it's been a while since I updated my articles. This year, I've been researching crypto. Many people often ask about making money online, so today I will share various ways to earn passive income using Bitcoin and other cryptocurrencies.

The following methods are listed from lowest to highest interest rates, and from highest to lowest safety.

1. The safest method: Using the "savings" feature of reputable large platforms like Binance, as shown in the picture below.

As you can see, the annual interest rate for Bitcoin is 1.2%, with no fees and withdrawals available at any time.

Huobi also has this feature, with an interest rate of 1.29%, slightly higher, and occasionally there are limited-time "mining" opportunities for fixed deposits, which fill up quickly. See the picture below:

2. Using Binance's "liquidity swap" feature, providing liquidity can achieve an annual interest rate of about 7% (as shown in the picture below).

Since the pair you provide is BTC/WBTC, and the values of these two coins are basically the same, you don't have to worry about "impermanent loss."

The safety of the above methods is very high because even if these large platforms are hacked, they will compensate users for their funds. If they don't, the platform's reputation would be ruined, leading to even greater losses.

3. Next, I will introduce methods with slightly lower safety (DEFI (decentralized finance)), but with higher interest rates, all above 10%. I have personally used several of these for months without any issues.

It is important to note: All DEFI projects have the risk of "smart contract" vulnerabilities, and even if they have been audited, the risk of being hacked cannot be ruled out. If hacked, no one will compensate you.

So, don't put money in that you can't afford to lose.

I recommend a website called "Defistation," which ranks DEFI projects on BSC. The top 10 projects are quite reliable.

Currently, over $23.5 billion has been invested in BSC's DEFI projects. If it were very dangerous, it wouldn't be possible to have so much capital.

I use DEFI projects on BSC because the gas fees on ETH are just too high. A simple operation on ETH can cost dozens of dollars. I once sold a coin called $BADGER, and the total fees amounted to about $200.

In contrast, BSC (Binance Smart Chain) has much lower fees, with typical operations costing only a few cents.

To use BSC, you need to have a wallet. I use the most popular open-source wallet—Metamask, which supports common browsers, as shown in the picture below:

Specific tutorial for setting up the BSC network on Metamask:

https://docs.binance.org/smart-chain/wallet/metamask.html

In simple terms, click on "Network" in the upper right corner of Metamask, then click "Custom RPC," and enter the information below.

Additionally, Metamask supports connecting to cold wallets, with both Ledger and Trezor supported. I strongly recommend linking a cold wallet, so even if hackers compromise your Metamask, they still can't steal your funds, ensuring the safety of your assets.

After that, you can start earning passive income using DEFI projects on BSC.

Here are some platforms where you can earn passive income with Bitcoin: Beefy, Autofarm, ACryptoS, Pancake Bunny, Value Defi, Hyper Finance, Elephant Money.

Except for the last platform, the others are quite similar and reliable. Since interest rates fluctuate, you can transfer at any time and choose what you think is most suitable.

Beefy Finance

Website: https://app.beefy.finance/

Official introduction:

https://docs.beefy.finance/beefyfinance/

Currently, the annual interest rate for BTC is 13.54% (0.03% daily), with no deposit fees and a withdrawal fee of 0.1%. Therefore, if you withdraw within 3 days, you will incur a loss.

Autofarm

Website: https://autofarm.network/

Official introduction:

https://autofarm.gitbook.io/autofarm-network/

The current total annual interest rate for BTC is 22.4% (13.7% BTC + 8.7% AUTO). $AUTO is the token of this platform, and you can regularly harvest AUTO, which can be directly swapped for the coins you want on PancakeSwap, or you can pair AUTO with BNB to provide liquidity and earn profits. The current APR is around 170%, but you need to manually harvest your AUTO. The deposit fee for BTC is 0.1%, as shown in the picture below:

Additionally, you can go to Beefy's AUTO-BNB farm for automatic "compounding," with the current APY around 500%.

Here’s a brief explanation of the difference between APR and APY: APR is the Annual Percentage Rate, which is the annual interest rate you pay when borrowing. APY is the Annual Percentage Yield, which is the annual interest rate after compounding (the exact amount depends on how many times you compound).

There is an APR to APY calculator here:

https://www.aprtoapy.com/

As shown in the picture below:

You can see that if the APR is 100%, and if you reinvest the profits daily, the final compounded annual interest rate (APY) is 171.46%. If the APR is 200%, the APY would be 634.88%. The power of compounding is indeed very strong.

ACryptoS (Advanced Crypto Strategies)

Website: https://app.acryptos.com/

Official introduction:

https://docs.acryptos.com/

Currently, the total annual interest rate for BTC is 23.6% (13.7% BTC + 8.7% ACS). $ACS is the token of this platform, and you can regularly harvest ACS (with a fee of 0.03 ACS). You can directly swap ACS for the coins you want on PancakeSwap, or you can deposit ACS to earn profits (currently with an interest rate of 447%, but note that withdrawing ACS incurs a 10% fee).

You can also pair ACS with BNB to provide liquidity and earn profits, with the current APR at 441%, but you need to manually harvest your ACS, as shown in the picture below:

Pancake Bunny

Website: https://pancakebunny.finance/farm/BTCB

Official introduction: https://pancakebunny.finance/farm

Pancake Bunny is the best platform to earn passive income with $CAKE (which I will discuss later). Recently, it has launched more "farms," including BTC. The current total annual interest rate is 23.44% (9.44% BTC + 14% BUNNY), and you can withdraw for free after more than 3 days; otherwise, a 0.5% fee applies.

Value Defi

Website: https://bsc.valuedefi.io/#/vsafe

Official introduction: https://docs.valuedefi.io/

Value Defi has a new BTC strategy that seems "too good to be true," as the rates are extremely high, and I haven't tried it. However, I have tried a BNB strategy with a similar interest rate, which claimed over 200%, but the actual profits were basically the same as my 40% strategy on Beefy. Therefore, I am not very confident in the rates stated for this project. However, the team behind this project is reliable, and I don't fear them running away.

Hyper Finance

Website: https://hyfi.pro/#/

Official introduction: https://cndocs.hyfi.pro/

This is a new reliable project. The initial interest rates were very high, but they have decreased significantly. The current total annual interest rate is 37.48% (3.05% BTC + 34.43% HYFI). HYFI is the token of this platform, and the HYFI earned needs to be held for 2 weeks before it can be sold, or you will incur a 50% loss.

Elephant Money

Website: https://elephant.money/

Official introduction:

https://elephant.money/media/elephant-wp.pdf

This is a project from Bankroll Flow (a reliable project that has been running on Tron for over 2 years). The current annual interest rate is around 70%. The reason this project's interest rate is so high is due to its unique algorithm. To join the project, you must pay a 10% fee, and you must also pay a 10% fee when exiting, so this project is only suitable for long-term investment (at least 3 months).

This article only uses BTC as an example to discuss how to earn passive income with crypto. BTC has one of the lowest interest rates among cryptos; in fact, there are many reliable projects with much higher rates, which I will supplement in the future.