Everyone in the cryptocurrency space arguably owns some form of Blue Chips. Blue Chips are top cryptos that have stood the test of time in the cryptocurrency sphere.
Blue Chips are the big boys. Cryptos that have gone through bear markets and have survived every single time. Also, they can be safely and accurately described as financially stable and productive. Although most times, Blue chips are viewed as a reliable store of value, they can also be a good passive income source.
Some of the top Blue Chips in the crypto space today include Bitcoin (BTC), Ethereum (ETH), Terra (LUNA), Avalanche (AVAX), etc. This article covers some of the best ways to earn yields on ETH, LUNA, and BTC. Instead of leaving your Blue chips to sit around, you can make them earn rewards for you.
Everyone in crypto owns blue chips. But most people let their ETH, BTC, and AVAX sit around.
Make your blue chips work for you and grow your stacks by yield farming.
Here’s your guide to farming blue chips (ETH, BTC, AVAX, and LUNA).
— pothu (@cryptoPothu) April 25, 2022
1. How to Earn Rewards with Your Ethereum (ETH) Tokens
According to Cov_duk (a crypto writer and investor), there are six (6) main ways to earn yields on your ETH tokens. They include;
ETH proposed shift from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism makes it possible for staking to take place. Staking ETH can result in up to a 4% APY reward. However to stake ETH tokens you need at least 32 ETH to stake directly.
Interestingly, this is also one of the safest and easiest ways to earn rewards on ETH. It is also a great way to give back to the ETH ecosystem. This is because staking also helps to secure the network.
Some of the best platforms to stake ETH include Lido, Rocket Pool, and even on Centralized Exchanges (CEXs) like Coinbase. Staking tokens on CEXs like Coinbase is low risk and easy to carry out. However, users have to be KYC verified and earnings are generally lower.
- Lending ETH
This takes place on protocols like Aave and Compound. Lending is usually done against your ETH deposits. However, earnings are much lower as compared to earnings from staking your ETH tokens
- ETH Liquidity Pools
This involves depositing your ETH tokens in a pool to earn rewards. However, it is advisable to make use of chains like Polygon, AVAX, FTM, etc, and not ETH chain. Also, this is mostly due to ETH’s scalability issues and high gas fees.
- Yield Aggregators
This can be carried out on aggregator platforms like Yearn Finance. Yearn Finance Aggregator currently provides an estimated APY of 1.25%.
Also, other ways to earn on your ETH holding is by Leverage and other Riskier ETH liquidity pools.
2. Earn Rewards With Your Terra (LUNA) Tokens
Terra (LUNA) has been at the center of activity in the crypto space in recent times. One way to earn rewards on your LUNA holdings is also by staking.
Staking LUNA tokens directly will result in an APY of ~8%. However, staking LUNA tokens on Anchor Protocol will result in an estimated 19% APY. You, however, need to deposit TerraUSD (UST) stablecoin to earn those returns on Anchor Protocol. Swaps between LUNA and UST are plentiful and cheap.
3. Earn Passive Income With Your Bitcoin (BTC)
One exciting way to earn income on your Bitcoin (BTC) holdings is on Celsius, With Celsius, BTC holders can earn rewards as high as 6.5% APY.
However, this reward rate is just for the first 0.1 BTC. It is also important to note that as deposits increase, the interest rate drops.
In conclusion, blue chips aren’t only a great store of value, they are also a great way to earn passive income on your crypto holdings
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