Crypto Royalties: How To Earn Long-Term Income From Crypto Investments

The cryptocurrency space suffered in 2022 as the world economy tumbled due to supply chain issues, the ongoing conflict in Ukraine, and soaring inflation rates. Many NFT projects disappeared; we even saw a crypto collapse when Luna crashed. Luna’s landing platform, Anchor, also went down when the entire blockchain was destroyed. 

That said, there are still some ways to earn money from crypto investments as a long-term investor looking for passive income opportunities. There are still decent yields for staking your cryptocurrency, and you can theoretically make a continuous money stream from your work with NFT royalties. 

Key Takeaways

• You can earn crypto royalties from NFT royalty programs, staking rewards, and lending. 
• Investing in crypto is risky as it’s a volatile asset, but long-term investors can benefit from various royalty programs. 
• You can earn passive income from lending your tokens to borrowers or by staking your crypto to verify transactions on the blockchain. 

How can you earn money from crypto royalties?

In the cryptocurrency space, you can generate passive income from crypto lending and staking. Crypto lending is, as the name suggests, all about lending out your tokens to borrowers at an agreed-upon rate. Crypto staking is a bit different as it involves leasing your tokens to the blockchain to verify transactions. 

Since no centralized bank controls everything and verifies transactions, companies use one of two mechanisms for verifying transactions on a cryptocurrency blockchain. Any blockchain that uses the proof-of-stake (PoS) mechanism allows for the staking of cryptocurrency to validate transactions on the network in exchange for rewards, which are usually a portion of that token. 

Since the Ethereum merge led to a switch to the PoS system, you can stake your Ethereum tokens. You can also stake Cardano, Solana, and any other cryptocurrency that uses this mechanism. You can’t stake Bitcoin since they use a proof-of-work mechanism.

This article will consider crypto lending, crypto staking, and NFT royalty programs as options for making money as long-term crypto investors. 

Crypto lending opportunities

In decentralized finance (DeFi), many financial products and services are built on a blockchain. DeFi differs from centralized banking because its foundation is peer-to-peer digital exchanges rather than centralized institutions like banks. One of the most popular DeFi services has become crypto lending. 

You may have seen advertisements from crypto exchanges telling you how much you can earn through crypto lending. You can make money from crypto lending by depositing your crypto in a lending platform that turns around and loans your crypto to borrowers looking to secure cash loans using crypto holdings as collateral. In exchange for loaning your crypto out, you earn interest as you get paid back.  

The amount you earn will depend on the platform, the type of cryptocurrency you’re lending out, and other possible market factors. We urge you to shop around different exchanges to see the rates different companies offer.

How to make money from crypto staking

One of the common ways to make money from crypto is through crypto staking, which involves giving your tokens to a blockchain so it can verify transactions. 

How can you stake crypto? Here are the steps you’ll likely follow if this interests you:

• You must decide which cryptocurrency you want to invest in. Finding a coin you want to invest in that allows staking is important.
• Find the right platform. You want to find a crypto exchange that offers competitive rates and security.
• Deposit your crypto, and stake it for an agreed-upon time. When it comes to the verification process, it’s often wise to stake your crypto on an exchange where the exchange adds your tokens to a validator’s stash. This way, you earn a portion of the rewards generated from validating transactions. 

Many people will use an exchange like Binance to stake their chosen crypto. The percentage yields change depending on market conditions. 

There are two different kinds of staking: locked and DeFi. Locked staking means that you have to lock up your crypto for a time, usually 30 to 120 days. As the name suggests, the locked-in staking means you can’t access your crypto for that agreed-upon time. 

DeFi staking has more to do with smart contracts and DeFi projects. If you try DeFi staking through a service like Binance, Binance won’t take responsibility for any security problems with on-chain smart contracts. 

As we saw with what happened to Luna, it’s crucial that you only invest money that you can afford to lose when it comes to staking your crypto. 

NFT royalty programs

NFT royalties allow you to earn a percentage of your sale price every time someone purchases your NFT project on a marketplace. Smart contracts complete the payments and can range from 5-10%. 

NFT royalties don’t require an…