There are a few ways to earn passive income from your crypto holdings, including staking, crypto lending, yield farming, and decentralized finance (DeFi). As I write this, platforms like Aave (AAVE +8.46%) and Compound (COMP +4.88%) pay annual percentage yields (APYs) of 4.79% and 3.27%, respectively, on USD Coin (USDC +0.01%).
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However, there are limited consumer protections on crypto lending platforms, which can make them a risky way to generate yield. For example, many users lost money when the Celsius lending platform collapsed. Staking is a safer way to put your crypto to work.
