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6 Ways To Make Passive Income With Crypto in 2026

November 25, 2025

5 min Read

Written by Caitlyn Moorhead

Edited by Gary Dudak

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Cryptocurrency continues to evolve rapidly, and though it has been no less volatile in 2025, 2026 could be a pivotal year for digital assets. With increased institutional adoption, regulatory clarity and the rise of decentralized finance (DeFi), earning passive income with crypto is more accessible and, fingers crossed, potentially more profitable than ever.

Yes, you can make money fast with crypto. However, you must follow industry news, know the best practices for trading, guard against theft, conduct thorough research on coins and crypto exchanges, and have an exit strategy in case you need it.

Whether you’re a seasoned investor or just starting your crypto journey, there are multiple ways to generate income without actively trading. Here are six of the best strategies to earn passive income with cryptocurrency in 2026.

1. Crypto Trading With AI Assistance

Crypto trading remains a popular way to earn income, especially with the rise of AI-powered trading bots and predictive analytics. To make money, you can buy crypto, hold it until its value rises and then sell it for a profit. You could even engage in day trading if your goal is quick income.

Keep in mind that even with technical expertise, any amount of cryptocurrency and day trading is high risk, so never invest more than you can afford to lose. However, these tools help automate trades based on market signals, reducing the need for constant monitoring:

Day trading and swing trading can yield fast returns, but they carry high risk.
Use platforms with low trading fees and real-time analytics.
Consider using AI crypto trading platforms like Kryll or 3Commas for automation.

2. Staking and Liquid Staking

If you’re interested in holding crypto, you can stake it, or in other words, agree to park it on an exchange or in a staking pool for some time. You’ll earn more crypto for keeping yours in place because doing so helps fund blockchain operations. In 2026, liquid staking is gaining traction, letting you earn while maintaining liquidity. Here are some key notes:

Popular staking coins include Ethereum (ETH), Solana (SOL) and Polkadot (DOT).
Use platforms like Lido, Rocket Pool or Binance Earn.
Restaking lets you earn multiple yields from the same asset.

Generally, you earn crypto by staking because you’ll receive interest, or dividends, potentially at a high rate. However, you often have to commit to a period of time to lock your crypto in the blockchain, and you’ll be subject to the risks of keeping your crypto on an exchange.

3. Crypto Lending and Interest Accounts

You can also opt to loan your cryptocurrency holdings out, allowing you to charge interest — sometimes with annual percentage yields of 15% or more. Lending cryptocurrency offers you the chance to go to the next level with investing by essentially lending money to borrowers and earning interest on the transaction.

However, this makes your crypto less liquid, meaning it’s harder to sell. More than one crypto lending platform has struggled with liquidity in recent months, so exercise caution in 2026. Earn interest by lending your crypto to borrowers through DeFi lending protocols or centralized platforms. Here are some key points:

Top platforms include Aave, Compound, Nexo, YouHodler.
Some offer APYs of 8% to 15%, especially for stablecoins like USDC or DAI.
Watch for platform security, collateralization ratios and withdrawal terms.

4. Yield Farming & Auto-Compounding Vaults

With this more advanced method, you can use DeFi protocols to maximize yield. However, you do need some background knowledge of the DeFi ecosystem, as you’ll need to find and navigate trustworthy decentralized applications.

If this seems like it’s in your wheelhouse, this is a great opportunity to quickly earn money with crypto, as it offers high yield after depositing liquidity into the exchange.

5. Mining and Cloud Mining

Mining is the computing process through which new coins are released into circulation. Not all coins are created through mining, but many are, including bitcoin. It can be profitable, but it requires extensive equipment and is very energy inefficient, meaning it’s often expensive to get started — and you might not make that investment back.

Simply put, mining is a great way to earn money with crypto as it verifies transactions on the blockchain and adds new blocks of data to the chain to then be rewarded with crypto for your effort. Know your local laws if you want to start mining for crypto. It’s illegal in several countries and some U.S. states have strict regulations.

6. Crypto Airdrops and Faucets

While not as lucrative as other methods, crypto airdrops and faucets offer free tokens for completing tasks or holding certain assets. Think of this as a giveaway to earn extra cash. Here are some tips: