Almost everyone has a dream to go out on a vacation of their life, yet only a few can live such a dream, let alone do it multiple times a year. Most people either don’t have enough savings for such a luxury or don’t have enough income to support such a lifestyle. However, spending a dream vacation with your loved ones isn’t as hard as you might think it is.
There are certain ways that can help you generate enough passive income to indulge yourself on a sensational vacation. If you wonder what those methods are, just continue reading. We have done most of the hard work and selected two of the best ways to generate passive income the easy way.
These include crypto Staking and Liquidity Mining. For those who are new to the crypto world, both these terms might not be that familiar. To give you an idea of how these methods work, we have discussed staking and liquidity mining in a simple and easy to understand manner.
In addition, you will also learn how to get a free deal vacation by generating passive income through any of the above methods. So, without any further ado, let’s dive in!
What is Staking?
The concept of cryptocurrency staking has been there for quite some time. Crypto owners can enjoy substantial incentives or rewards by holding on to their crypto assets. These rewards can go up to 40% of the total value of staked crypto, which is a lot more than a conventional savings account may offer.
After reading the above lines, you might have developed an interest in crypto staking. To help you understand what staking is all about, we have elaborated the basic concept behind this amazing method of generating passive income.
How Crypto Staking Works?
Staking is a way of earning handsome interest by holding your crypto assets in a staking pool, which acts similarly to your savings account. Service providers like Cake DeFi have further simplified this process for you and are offering easy to use staking pools anyone, also with no prior knowledge, can easily use. However, in order to reap the fruits of staking, you need to own crypto assets that allow staking i.e. DFI, the native coin of DeFiChain.
The staked crypto assets are put to work by the blockchain, which in turn offer rewards. This is done via a process called “Consensus Mechanism” commonly referred to as ‘Proof of Stake’. Through this process, the verification of all transactions is ensured.
If you stake your crypto assets, it becomes an integral part of such a mechanism. It serves as collateral while helping blockchain networks to leverage the ‘Proof-of-Stake’ algorithm. This process is similar to crypto mining, where miners rely on computational power to create a consensus in a blockchain through the Proof-of-Work mechanism.
Crypto holders with higher stakes can earn higher rewards. The new tokens generated through this process are distributed as rewards for validating each block. A Proof-of-Stake blockchain is a more efficient method of validating the transactions, as it doesn’t require installing expensive computer hardware.
What is Liquidity Mining?
In fact, liquidity mining acts as a key element of most DeFi (Decentralized Finance) projects. During this process, participants offer their cryptocurrencies to a liquidity pool. This type of pool facilitates crypto trading –– your crypto assets aren’t used for borrowing or lending purposes and can be withdrawn at any time (no lock-up period)
On the contrary, crypto assets are placed in trading pairs, i.e. DFI/BTC. That means, you first need the same amount of both coins. The platform offers LP tokens to investors as a reward for placing their cryptocurrencies in the liquidity pool. In DeFiChain’s case the rewards are paid out in the native coin DFI, allowing a more cohesive user experience.
How Liquidity Mining Works?
To put it simply, the liquidity pool serves as a marketplace for specific pairs of crypto assets. Since there are no order books on decentralized exchanges, new, ingenious ways of trading one coin into another one had to emerge –– liquidity mining was born. The concept of liquidity mining is designed in a way that all trades happen fully decentralized. As such, the price finding mechanism hinges solely on supply and demand.
Based on the amount of cryptocurrency offered, liquidity providers are rewarded with fees and/or tokens. Once the trade or crypto swapping is complete, the transaction fee and the block rewards are distributed among all liquidity providers. Whatever happens in a liquidity pool is governed by a smart contract. This means investing in liquidity mining is safer than you think and even more secure on non-Turing complete blockchains like DeFiChain, since possible attack vectors are greatly reduced by utilizing just a limited amount of code.
Generate Passive Income with Crypto Staking/Liquidity Mining and Enjoy a Dream Vacation
Crypto staking or liquidity mining, is a low-risk and a safe way to generate a passive revenue stream through higher interest rates. By staking DeFiChain’s native DFI token, you will earn additional DFI for enforcing consensus rules and ensuring the security of the network.
These DFI are added to your digital wallet periodically –– twice per minute your crypto wallet will see a DFI deposit. The whole process is automated, which means your investment is safe. A lot of cryptocurrencies allow staking, which offers a variety of options to choose from. This means you can earn more yield through the same amount of crypto assets by opting for the right platform.
In addition to the rewarded tokens, you can also earn a percentage of the revenue generated through staking your crypto assets. For instance, you will earn a share of the fee charged by the platform for swapping crypto assets.
Trusted and most popular investment platforms like Cake DeFi offers staking options regarding various crypto assets. And the best part is that you can earn up to 60% APY (annual percentage yield) when you stake your DFI for multiple years. Besides that, Cake DeFi is one of the biggest crypto investment platforms with close to half a million of happy customers. If you want to invest your crypto stash using their curated products, then you might want to sign up now and get a $30 sign-up bonus for a minimum deposit of $50.
Since the concept of crypto staking is gaining popularity among retail investors, more and more platforms are offering staking facilities. This leads to a healthy competition where investors can earn better returns. These returns on the other hand can then be used to bear all the expenses of your dream vacation.
According to surveys conducted by major US travel magazines, the average American will spend about $3,000 on an international vacation trip in 2022. Now let’s assume you want to bring your whole family on a dream vacation abroad. That’s definitely not a cheap undertaking, since it would cost you an average $12,000. But how would it sound, if you could make this amount by investing $50,000 for 6 months?
Yes that’s true! By investing 50 grands for half a year, the return you would receive from Staking or Liquidity Mining would be enough to pay for all the expenses of your dream vacation and even some extras on top. You might ask yourself now, why aren't more people taking advantage of this? Well, crypto saving is a relatively new thing and not many people know about it yet. This will change over the next couple of months when more people experience these kinds of investment vehicles to generate a regular income.
No doubt, both staking and liquidity mining are secure and trusted ways to earn a passive income. By staking your cryptocurrency, you join the team of validators for a particular network. In return, you will be awarded tokens or incentives.
However, the amount of income generated depends on the investment you have made. Hence, you can earn more rewards or tokens by investing a substantial amount of crypto assets in staking or liquidity mining.
So, if you want to go out on a dream vacation, consider investing in any of the two methods mentioned above. Summer, sun and good cocktails are just an arm's length away. All you have to do is to give yourself a nudge and start investing with Staking and Liquidity Mining. In fact, you won’t regret making such a decision!