In addition to their stability, stablecoins have grown in popularity due to their potential for income generation.
Stablecoins offer ways to generate passive income in the constantly changing cryptocurrency market, whether you’re a crypto enthusiast or an astute investment.
We will consider a number of ways on how to make money with stablecoin in this blog post.
How to make money with stablecoin
Staking and Yield Farming
Staking and yield farming with stablecoins are two of the most well-liked methods of generating cash. These tactics entail giving decentralized finance (DeFi) systems liquidity in exchange for benefits.
- Staking
A lot of blockchain networks provide staking programs that let you lock your stablecoins for a set amount of time while also enhancing network security and collecting incentives.
Staking means investing in literal terms. It means keeping your money for a specified reward at the end of a particular period.
You can stake as low as $5 on Kumo wallet and earn up to 25% APR on your investment.
- Yield Farming
Utilizing stablecoins to supply liquidity to lending or liquidity pool services is known as yield farming.
You can earn interest or trading commissions from the site by lending your stablecoins or adding them to a liquidity pool.
However, be aware of the hazards connected to yield farming, including transient loss and weak smart contract security.
To reduce potential dangers, do a thorough analysis of the platforms and think about diversifying your investments.
Savings Accounts and Lending services
With stablecoin, you may earn income on your holdings through savings accounts and lending services.
You can deposit stablecoins on these services and accrue interest over time.
- Savings Accounts
A number of centralized and decentralized services provide stablecoin-related savings accounts.
These accounts offer interest on deposited monies and operate similarly to conventional bank accounts.
A typical example of a savings account is Kumo Investment plans which allows you to earn interest on your BUSD, a stablecoin.
- Lending Platforms
You can lend your stablecoins to borrowers on lending platforms in return for interest payments.
The platforms make lending easier and guarantee loan repayment.
You can evaluate lending platforms based on various aspects including interest rates, borrower repute, and collateralization.
In conclusion, stablecoins provide a variety of ways to profit in the cryptocurrency market, including yield farming, staking, savings accounts and lending platforms.
To protect your assets, you must, however, undertake in-depth research, evaluate the dangers, and select reliable platforms.
To maximize profits while navigating the unpredictable market, diversification and risk management are essential.
About Kumo
Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.
Kumo wallet is your all-in-one social payment app for seamless payment solutions.
Website | Twitter | Facebook | Instagram | Email