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Exploring passive income strategies in crypto: are they worth it?

Examining Passive Income Strategies in Crypto | Are They Safe?

By

Alexandra Chen

Jun 25, 2025, 05:40 PM

Updated

Jun 27, 2025, 09:38 AM

2 minutes estimated to read

A person analyzing cryptocurrency trends and strategies on a laptop with graphs and coins in the background
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A rising faction in the crypto world is challenging the dependability of passive income methods. Experiences differ greatly among platforms offering staking, lending, and DeFi protocols, with many users sharing mixed results. Some platforms promise APYs of 4% to over 10%, but feedback reveals a more complex picture.

The Thriving Landscape of Passive Income

Multiple participants point out that various platforms now allow them to leverage their assets effectively. One participant noted, "Staking on Lido and Coinbase for ETH, earning 4-5%." This trend shows the potential for small investments to yield notable returns.

Platforms Staking a Claim

Various platforms are under scrutiny, and experiences vary:

  • Celsius: Cautionary tales surround this platform as one user commented, "Yeah, it worked out great for Celsius users. /s" highlighting the risks associated with lending platforms.

  • Aave: Users report decent returns on stablecoin lending, with one mentioning earnings of around 6-7%.

  • Nexo and Lido: Users prefer established platforms, with some stating a desire to avoid less-known protocols due to smart contract risks and security concerns.

  • Yearn Vaults and Tokemak: These newer solutions draw attention for yields, with participants attempting to maximize their returns.

User Experiences and Concerns

Community sentiment remains guarded. Some feel that unless high capital is at hand, passive income in crypto may not be fruitful. A participant remarked, "Unless you have hundreds of thousands to deploy, you won't have a very good time chasing passive income in crypto."

Another mentioned, "It's the fiat that is crumbling but crypto isn't generating actual income." This emphasizes a growing sentiment about the reliability and actual profit potential of these income streams.

Risk Awareness is Essential

As more people explore crypto for passive income, risks and scams loom large. Feedback reveals a strong undercurrent of skepticism. One user expressed, "20%+ APR is doable on stables but it requires careful management to avoid liquidation." Understanding platform reliability remains crucial as many advice fellow peers, urging them to be diligent.

Key Observations from the Community

  • ⚠️ Users warn about lending platform risks and urge sticking to secure, decentralized options.

  • πŸ“Š Interest in stablecoins is rising, with many finding them more reliable in the current market.

  • πŸ” A notable call for research on platforms before committing funds is echoed by many, suggesting a pattern of careful investment.

Curiously, while optimism exists, skepticism about long-term sustainability remains palpable. As the crypto landscape continues to shift, can these passive income strategies withstand the test of time?