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Passive income remains one of the most popular financial goals, allowing you to generate income without being actively involved in the process. In 2025, passive income opportunities have expanded significantly due to the growth of digital technology and the popularization of cryptocurrencies. In this article, let's break down what passive income is, what it is not, and look at the best ways to generate passive income with a focus on cryptocurrencies.
What is passive income and what it is characterized by
Passive income is income received on a regular basis, without the necessary active participation in the process of earning. The main characteristics of passive income:
Stability. Income is received on a regular basis, for example, monthly or quarterly.
Minimal effort. Once the process is set up (e.g., investing or connecting trading bots), your involvement in management is minimal.
Diversification. Passive income can come from different sources, which reduces risk.
Classic examples of passive income are real estate for rent, investments in stocks or cryptocurrencies, as well as income from intellectual property (books, music).
What cannot be called passive income
There are a number of misconceptions about what is considered passive income. Some types of earnings require active participation or significant time investment.
A brief summary of what is not passive income:
Freelancing. While flexible schedules are possible, freelancing requires active work and tasks.
Entrepreneurship. Running a business, especially in the initial stages, requires significant time and resources.
Manual trading in financial markets. Constant monitoring, analyzing and decision making make this process an active activity.
Working for a percentage. While income may be periodic, fulfillment of conditions requires constant effort.
Thus, if the activity requires regular involvement, it can hardly be called passive.
Top passive income options
In 2024, the best passive income options are related to the use of modern technology and financial instruments. The most flexible and profitable are options for earning in the field of cryptocurrencies, but let's break down all the main types.
Investing in cryptocurrencies
Cryptocurrencies remain one of the most lucrative investment options. The main ways of passive income in this field are:
1. Buying and holding (HODLing)
This is one of the most popular methods of passive investing in cryptocurrencies. It involves buying cryptocurrency and holding it for a long period of time in the hope that the price will rise in the long run. The strategy is based on believing in the potential of cryptocurrency and refusing to sell assets in the face of short-term volatility.
Features:
Advantages: Simplicity, low costs, no need for frequent transactions.
Disadvantages: Risks associated with high volatility, lack of flexibility in decision making.
How to get started:
Choose cryptocurrencies with high growth potential and liquidity.
Store them in secure wallets.
2. Staking
Staking involves freezing cryptocurrency in a wallet to support a blockchain network (such as the Proof of Stake network). In return, you are rewarded in the form of new coins. This is one of the clearest examples of passive income, as you do not actively participate in the management of the network, but only contribute.
Features:
Benefits: Staking allows you to earn an income that depends on the volume of your coins and the network you participate in. Simple process.
Disadvantages: Risks associated with a possible drop in the cryptocurrency exchange rate, technical difficulties in setting up steaking.
How to get started:
Choose cryptocurrencies that support Proof of Stake (e.g. Ethereum 2.0, Cardano, Polkadot).
For staking, use platforms and wallets with staking functionality or do it through various exchanges.
3. Staking Pools (Staking Pools).
This is a variant of staking where you pool your coins with other investors to increase your chances of earning rewards. Staking pools are groups of participants who share in blockchain processes, which allows for a more stable and consistent income.
Features:
Benefits: A pool increases your chances of receiving rewards. You also share the risk with other participants.
Disadvantages: Not all pools are equally reliable, there is a risk of fraud or inefficiency.
How to get started:
Choose a reliable steaking pool that matches your interests and cryptocurrencies.
Check the commissions and reputation of the pools before joining.
4. Liquidity Pools (Liquidity Pools) and DeFi Protocols
Investing in liquidity pools, especially in the context of decentralized finance (DeFi), involves participating in liquidity pools where cryptocurrency is used to enable trading on decentralized exchanges (DEX). In return for providing liquidity, you receive transaction fees.
Features:
Benefits: Opportunity to generate income through commissions and interest. Potentially high returns.
Disadvantages: High risks, including impermanent losses (losses due to changes in token exchange rates), risks due to vulnerabilities in smart contracts.
How to get started:
Use popular DeFi platforms such as Uniswap, PancakeSwap, Sushiswap to get started.
Provide liquidity to appropriate pools, choosing pairs with high liquidity and potential returns.
5. Cryptocurrency Index Funds (Crypto Index Funds)
This is a passive investing option where you invest in a set of cryptocurrencies through index funds, which may include the cryptocurrencies with the largest market capitalization or funds that track specific indices.
Features:
Advantages: Portfolio diversification, risk minimization, professional management.
Disadvantages: Fund management fees, risk of error on the part of managers.
How to get started:
Research the offerings of large cryptocurrency funds, such as the Grayscale Bitcoin Trust or the Bitcoin ETF fund.
Consider funds that include a wide range of cryptocurrencies (e.g., multi-asset cryptocurrency indexes).
6. Cryptocurrency savings accounts
Some platforms offer users the ability to earn interest on cryptocurrency deposits, similar to traditional savings accounts. In this case, cryptocurrencies (such as Bitcoin or stablecoins) are deposited on the platform, which pays interest in exchange.
Features:
Advantages: The ability to earn a steady income (especially with stablecoins). Convenience and simplicity.
Disadvantages: Risks associated with centralized platforms (hacks, bankruptcies), as well as the risk of falling cryptocurrency prices.
How to get started:
Choose platforms such as BlockFi, Celsius, Nexo that provide cryptocurrency savings accounts.
Determine the terms, rates, and fees to choose the right offer.
7. Mining on Cloud Services (Cloud Mining)
This method allows you to invest in mining without having your own equipment. You rent computing power from cloud mining services.
Features:
Advantages: No technical equipment required, may be more affordable.
Disadvantages: High commissions, fraud risks, drop in profitability.
How to get started:
Choose reliable cloud mining services (like Genesis Mining or HashFlare) and check the terms and conditions.
Trading with cryptobots
Trading bots automate the process of trading cryptocurrencies using predefined strategies. With the help of trading bots from the Veles Finance platform, you will not have to spend a lot of time monitoring the market and trading, the bots will do it for you. These bots can trade on both spot and futures markets on the 6 largest centralized crypto exchanges. Cryptobots are ideal for those who want to make money on cryptocurrency fluctuations without wasting time trading on their own.
Benefits:
Automation. Software bots allow you to conduct trading operations without constant human involvement.
Wide functionality. Automated systems are able to implement complex trading strategies, such as arbitrage or the use of multiple indicators.
Speed of execution. Bots have the ability to fix the necessary changes in prices much faster than a human, which is especially important in markets with high volatility.
Disadvantages:
Risks of loss. A trading bot for cryptocurrencies can lead to losses even with optimal settings if market conditions change.
Need for customization. Since the market is constantly changing, it is important to monitor the bot's performance and adjust its settings if necessary.
Dependence on API. The efficiency of work depends on the speed and stability of trading platforms' APIs, which can sometimes fail. Nevertheless, such problems rarely occur on large and reliable exchanges.
Buying bonds
Bonds are considered a traditional and conservative instrument for passive income.
Pros: low risks, guaranteed income in the form of coupons.
Minuses: low yield compared to other methods.
In 2025, bonds of large corporations and government agencies are popular.
Buying shares of companies
Investing in shares can bring income due to:
Dividends. Companies pay a portion of profits to their shareholders.
Growth in the value of the stock. If you hold shares for the long term, you can capitalize on their rising price.
To do this, you will need to choose stable companies with a reliable reputation.
Forex trading
Forex remains an attractive market for passive income. However, it can only be called passive if you use:
Robots for automated trading.
Investing in PAMM accounts, where professional traders manage your funds.
Independent trading requires significant time expenditures and cannot be considered fully passive.
Trading on cryptocurrency exchanges
Cryptocurrency exchanges give you the opportunity to earn money from trading. However:
Independent trading requires skills, knowledge and constant market analysis.
Using bots allows you to make the process as automated as possible.
If you want to earn passively, trading manually is not the best option. It is more efficient to set up and run cryptobots from Veles, which we told you about earlier, they will take over the entire trading process.
Conclusion
In 2025, passive income can be earned in a multitude of ways. Cryptocurrency tools such as staking, lending and trading through bots are becoming some of the most promising avenues. They offer high returns and do not require significant time investments. At the same time, traditional instruments such as bonds and stocks remain relevant, but are inferior to crypto-instruments in terms of profitability. When choosing any of the ways of passive income, it is necessary to clearly understand your goals, risk management and degree of involvement.
FAQ
1. What are the risks of passive income in cryptocurrency?
Risks include market volatility, hacking attacks on platforms, and regulatory changes.
2. Can trading bots be trusted as a source of passive income?
Yes, if you choose a proven platform such as Veles and carefully customize your strategies. However, it is not recommended to fully rely on bots, as there are market risks.
3. How is passive income from cryptocurrencies better than traditional ways?
Cryptocurrencies offer higher returns and a wide range of opportunities such as liquidity steaking and pharming.
4. Is passive income suitable for beginners?
Yes, but it is important to start with simple tools such as staking or investing in cryptobots.
5. Do I have to pay taxes on passive income?
Yes, in many countries income from investments and cryptocurrencies is taxed. It is recommended to consult a lawyer or tax professional.
