Passive income in cryptocurrency.

by BT · 27.04.2025

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Introduction

What is Passive Income?
Passive income is a way to earn profit without constant active work. In the world of cryptocurrency, this means you invest funds or resources and then receive automated income—such as interest, bonuses, or new coins.

Why is this Topic Relevant?
Cryptocurrency is becoming more integrated into everyday life. Many people are looking not only to store but also to grow their digital assets. Passive income is a popular solution for investors of all levels, especially in times of traditional market instability and the growth of the DeFi sector.

Who is Passive Income in Crypto Suitable For?

Beginners seeking their first investment experience
Cryptocurrency holders looking to grow their capital without trading
Those who want to diversify their investments
Blockchain enthusiasts open to new financial opportunities

Conclusion:
Passive income in cryptocurrency is accessible to everyone but requires a thoughtful approach and understanding of the risks involved.

Main Ways to Earn Passive Income in Cryptocurrency

2.1. Mining (Proof-of-Work)

How It Works
Mining is the process of creating (mining) new crypto coins and confirming blockchain transactions using computer computational power through the Proof-of-Work (PoW) algorithm.
Network participants (miners) solve complex mathematical problems. The first to find the correct solution forms the next block in the blockchain and receives a reward—new coins and transaction fees included in the block.

Types of Mining:

Solo Mining: An individual miner competes for rewards alone. Requires significant computing power and is rare among beginners.
Pool Mining: Many miners combine resources in a mining pool to collectively find blocks and share rewards.
Cloud Mining: Renting hashing power from specialized services (via online platforms), with no need to buy your own equipment.

According to the latest data (2024–2025), most individual miners choose pool mining, as it significantly reduces income fluctuations and the risk of mining at a loss.

Advantages

Potentially High Earnings: Under favorable conditions (cheap electricity, access to modern equipment), income can surpass many traditional investments.
Decentralization: Miners support the network’s operation, ensuring its security and independence from a single authority.
Transparency: All profitability and reward distributions are easily verifiable via blockchain explorers.
Liquidity of Mined Coins: Most coins can be quickly sold or exchanged on exchanges.
Low Entry Barrier Possible: It’s possible to start with minimal investment (for example, pool mining with a single graphics card, though earnings will be minimal).

Risks and Challenges

High Initial and Ongoing Costs: Need to invest in equipment (ASIC miners, GPUs), electricity, cooling, and maintenance.
Equipment Depreciation: Rapid wear and obsolescence, especially for GPUs and ASIC devices.
Regulatory Risks: In some countries, mining is restricted or banned (e.g., China, parts of Europe). Problems can also arise with access to cheap electricity and taxation issues.
Income Volatility: Mining difficulty and rewards change—income is not guaranteed and depends on coin price, electricity costs, network hashrate, and fees.
Environmental Concerns: There is ongoing debate about PoW mining’s negative environmental impact due to high energy consumption.

Minimum Requirements

Equipment:
- For BTC: Specialized ASIC miners (e.g., Antminer S19).
- For “lighter” coins (LTC, ETC): High-performance GPUs (NVIDIA/AMD) or smaller ASICs.
Internet: Stable connection (preferably wired), low latency.
Space: Well-ventilated area, with cooling (mining generates a lot of heat and noise).
Skills: Basic knowledge of operating systems (Windows/Linux), mining software setup, pool registration, and security management.
Capital: From a few hundred to several thousand dollars to get started.

Examples of Coins and Platforms

Bitcoin (BTC): The classic of PoW mining, requires only ASIC devices.
Litecoin (LTC): One of the first altcoins, mined on ASICs and GPUs.
Ethereum Classic (ETC): Continues to use PoW, supports GPU mining.
Ravencoin (RVN), Ergo (ERG): Newer projects popular with home miners.

Mining Pools:

F2Pool, AntPool, ViaBTC, Ethermine (for ETC), 2Miners.

Cloud Mining:

NiceHash, ECOS (exercise caution—not all services are reliable).

Current Economic Calculations

Profit = (Block Reward + Transaction Fees) × Your share of hashrate – Electricity and maintenance costs.
Current equipment payback period (2024–2025) ranges from 12 to 36 months at average electricity rates and a Bitcoin price of ~$40–70k.
If the crypto price drops or network difficulty increases, profitability decreases sharply.

Practical Tips and Recommendations

Always calculate profitability before buying equipment using online calculators (WhatToMine, CryptoCompare).
Avoid mining with old/underpowered devices—it’s not profitable.
Choose only reputable mining pools with transparent payout stats.
Practice security—never download software from suspicious sites, use separate wallets for payouts.
Factor in costs for ventilation and noise suppression, especially for home mining.
Check local regulations—in some regions, even home mining is taxed or requires registration.

Summary
Proof-of-Work mining is a powerful tool for generating passive income but requires significant knowledge, initial investment, and expense management.
For beginners, it’s better to start with pool mining or consider alternative passive income methods with lower risks and technical requirements.

2.2. Staking (Proof-of-Stake and Its Variations)

How it works
Staking is a way to earn passive income with cryptocurrencies, based on the Proof-of-Stake (PoS) consensus algorithm. Unlike mining, it does not require computing power: you simply “lock” your coins in a wallet or on a platform to help support the blockchain. In return, you receive regular rewards in the form of new coins or interest.

Main PoS Variations:

Classic PoS: Rewards are distributed among everyone who holds and locks (stakes) coins.
Delegated Proof-of-Stake (DPoS): Coin holders vote for delegates who validate transactions and receive rewards (often sharing them with those who delegated).
Liquid Staking: You can stake coins and at the same time receive liquid token derivatives (e.g., stETH, rETH) that can be used in DeFi protocols.

In 2024–2025, most new blockchains are moving to PoS or its hybrids due to environmental friendliness and scalability.

Advantages

Accessibility: No special equipment required. You can start even from a phone or a basic computer.
Eco-friendliness: Unlike mining, staking consumes almost no electricity.
Predictable returns: Yields are often known in advance (Annual Percentage Yield — APY).
Liquidity: Some platforms allow you to withdraw coins without long lockup periods (especially with liquid staking).
Scalability: As the ecosystem (DeFi, NFT) grows, staking opens up new possibilities, such as “yield farming” or combined products.

Risks and Features

Lockup period: On some platforms, coins are locked for a fixed period (from several days to weeks or even months) during which you cannot sell or withdraw them.
Risk of loss: You can partially lose coins due to incorrect setup, network attacks, or smart contract bugs.
Decreasing yields: As more users stake, reward percentages usually decrease.
Smart contract risks: If using DeFi platforms, there can be code vulnerabilities.
Inflation: High returns are sometimes offset by the issuance of new coins, which can reduce their value.
Regulatory risks: In some countries, staking may be regulated as an investment service.

Minimum Requirements

Coins that support staking: For example, ETH, SOL, ADA, DOT, ATOM, AVAX.
Wallet or exchange account: For independent staking — the native network wallet (e.g., Ledger, Keplr, Phantom); for exchange staking — an account on Binance, Kraken, Coinbase.
Minimum deposit: Each coin has its own threshold — for ETH it’s 32 ETH (for running a validator yourself), for most DeFi platforms — from 0.01 coin.
Basic wallet skills: Installation, seed phrase backup, sending and receiving coins.
Internet access: For independent validators — must be constant and stable.

Examples of Coins and Platforms

Ethereum (ETH): Staking after switching to PoS. Solo validator — from 32 ETH, on exchanges/DeFi — from 0.01 ETH (via Lido, Binance Earn).
Solana (SOL): Supports classic and delegated staking (via Phantom, Solflare).
Cardano (ADA): Delegated staking available (via Daedalus, Yoroi, Binance).
Polkadot (DOT): Nominated Proof-of-Stake — voting for validators, staking via Polkadot.js or Kraken.
Avalanche (AVAX): Staking available via its own wallet or exchanges.
DeFi platforms: Lido, Rocket Pool, Ankr (liquid staking), Binance Earn, Kraken Staking.

Step-by-step Guide for Beginners

Choose a coin: Review the yields, project history, and staking requirements.
Choose a platform: The easiest way is to start staking via an exchange or DeFi platform (e.g., Binance Earn, Lido, Kraken).
Set up or register a wallet: Register a native wallet, and be sure to save your seed phrase.
Buy and transfer coins: Buy the required coin on an exchange and transfer it to your staking wallet/platform.
Choose a validator (if needed): In delegated networks, pick a reliable validator with a transparent track record.
Start staking: Lock up your coins, monitor your rewards and withdrawal conditions.
Monitor risks: Don’t stake everything at once; keep a reserve in case of technical issues.

Real Examples and Yields (as of 2024–2025)

Ethereum (via Lido, Binance Earn): 3–4% APY
Solana (via Phantom): 6–7% APY
Cardano: 3–5% APY
Polkadot: 10–14% APY (higher if running your own validator)
AVAX: 7–9% APY

Returns are listed before platform fees and can vary depending on network conditions.

Practical Tips and Recommendations

Stake only on official wallets and trusted platforms.
Never share your seed phrases or private keys with anyone.
Keep track of changes to withdrawal rules and platform policies.
Diversify risks — spread your coins across different networks and validators.
Check current returns using calculators: Staking Rewards, Binance Earn.

Summary
Staking is one of the simplest and most eco-friendly ways to earn passive income with crypto—ideal for beginners.
The key is to choose only reliable coins and platforms, avoid chasing “unrealistic” yields, and pay careful attention to security and storing your seed phrase.

2.3. Lending (Decentralized and Centralized)

How it works
Lending is the act of providing your cryptocurrency to other users or platforms as a loan in exchange for interest. Your assets “work” for you, earning passive income while you still hold them without selling.

Types of Lending:

Centralized Lending (CeFi Lending):
Conducted via centralized services (exchanges, fintech companies). You deposit your cryptocurrency to a platform, and the company manages loans, paying you interest.
- Examples: Binance Lending, Nexo, Crypto.com Earn, Celsius.
Decentralized Lending (DeFi Lending):
Conducted via smart contracts without intermediaries. You supply your crypto to a decentralized protocol, where your funds are automatically used for lending to other users.
- Examples: Aave, Compound, Venus, MakerDAO.

In 2024–2025, DeFi lending is especially popular for its transparency and accessibility without identity verification. Centralized services are preferred by those who value a “traditional” level of service and support.

Advantages

Flexibility: You can choose the deposit term (from a few days to months) and set the reward rate.
Accessibility: No special knowledge or equipment required—just create an account or connect a wallet.
Wide choice of coins: Not only “classic” tokens (BTC, ETH, USDT) are available but also many altcoins.
Liquidity: Many platforms offer “flexible deposits” that allow withdrawal at any time.
Transparency (in DeFi): Anyone can check protocol status, reserves, and risks via the blockchain.

Risks and Limitations

Credit risk (CeFi): The company could go bankrupt, freeze accounts, or face sanctions (e.g., Celsius, BlockFi collapse).
Smart contract risk (DeFi): Bugs or hacker attacks may lead to loss of funds.
Liquidity: Some platforms lock your assets for a fixed term.
Changing conditions: Yields and terms may change without notice.
Regulatory risk: In some countries, centralized lending is regulated as a financial service.
Tax consequences: Lending interest is considered income and may be taxed.

Minimum Requirements

Cryptocurrency wallet: For DeFi—MetaMask, Trust Wallet, hardware wallets; for CeFi—a platform account.
Minimum deposit: Usually from $10–$50 equivalent (for popular stablecoins like USDT, USDC).
Internet access and basic knowledge of token transfers.
Understanding of transfer and withdrawal fees.

Examples of Coins and Platforms

DeFi:
- Aave: Supports 20+ coins, flexible terms, frequent integration of new networks (Ethereum, Polygon, Avalanche).
- Compound: One of the first DeFi lending protocols, offers clear analytics.
- Venus (on BNB Chain): Popular within the Binance ecosystem.
CeFi:
- Binance Lending: User-friendly, high security, support for different terms and currencies.
- Nexo: Fixed and flexible rates, wide range of supported assets, their own card.
- Crypto.com Earn: Extra bonuses for CRO holders.
- Bybit Savings, OKX Earn: Similar products for USDT, ETH, BTC.

Step-by-step Guide for Beginners

Choose a platform: Decide if you prefer centralized services or want to try DeFi.
Create an account or wallet: For CeFi—register and complete KYC; for DeFi—connect a wallet (MetaMask, Trust Wallet).
Fund your account/wallet: Deposit cryptocurrency to your chosen platform or wallet.
Select asset and term: Review current rates and terms (yields are usually higher for stablecoins—USDT, USDC, DAI).
Deposit/lend: Place your asset into the selected product (deposit/lend).
Monitor: Regularly check interest accrual and withdrawal terms.
Withdraw: After the term ends or whenever you wish, withdraw your assets and interest to your wallet.

Actual Yield Examples (2024–2025)

Aave, Compound: 2–7% per annum for stablecoins, up to 10–15% for certain altcoins.
Binance Lending: 1–6% per annum (higher for fixed-term products).
Nexo: 6–12% per annum for stablecoins, provided you hold their NEXO token.

Yields depend on loan demand, platform liquidity, and terms.

Practical Tips and Recommendations

Use only reputable, large platforms with a long track record.
Do not invest all your funds in one service—diversify risks.
Carefully read all terms: there may be deposit/withdrawal fees, changes in rates.
Keep backup copies of your seed phrase and double-check withdrawal addresses.
For DeFi—never approve wallet access for suspicious contracts.
For large amounts, use hardware wallets and multi-signature (multi-sig) protection.
Stay up to date on regulatory changes in your country.

Summary
Crypto lending is a modern tool for passive income without selling your assets. It’s beneficial for those seeking flexible terms and wanting to put their coins to work. The main risk is choosing an unreliable platform and losing control over your assets. Beginners are advised to start with small amounts on major platforms and study product terms thoroughly.

2.4. Launching a Lightning Node

How it Works
The Lightning Network is a “second-layer” protocol built on top of the Bitcoin blockchain, designed for instant and low-cost transactions. The network relies on nodes—servers or computers—that open liquidity channels, process payments, and route them across the network.

As a Lightning Node operator:

You launch a server connected to the Bitcoin blockchain.
You open payment channels with other users/nodes, depositing BTC into smart contracts.
You route payments within the network and earn fees for processing transactions that pass through your node.
You set your own fees (typically from 0.01% to 1% per transaction).

Advantages

Contribution to the ecosystem: Supports the scalability and decentralization of Bitcoin.
Commission income: All transactions routed through your node (and channels) bring small commissions.
Instant transfers: Speeds up BTC settlements for yourself and others.
Liquidity control: You manage your channels—deciding with whom and how much to open.
Anonymity and privacy: Lightning payments are harder to trace than regular blockchain transactions.

Risks and Limitations

Technical complexity: Requires Linux experience and knowledge of networking and Bitcoin basics.
Need for constant uptime: The node must be online at all times for channels to work reliably.
Liquidity management: You must monitor channel balances and occasionally rebalance or close channels.
Security: Configuration errors or server breaches may result in BTC loss.
Low initial returns: Earnings highly depend on your node’s visibility, liquidity volume, and successful payment routing.
Network-dependence: Earnings growth is only possible with high user activity in your part of the network.

Minimum Requirements

Hardware:
PC, mini-computer (e.g., Raspberry Pi 4), or a dedicated VPS/server.
Software:
One of the popular Lightning implementations (LND, c-lightning, Eclair).
BTC wallet:
You need a small reserve of BTC to open payment channels (minimum ~0.01–0.05 BTC).
Persistent internet connection:
Ideally a dedicated IP address and stable 24/7 connectivity.
Skills:
Experience with Linux command line, basic knowledge of Bitcoin node operations.
Backup:
Regularly back up channel data and seed phrases.

Examples of Implementation

RaspiBlitz: Compact Lightning node on Raspberry Pi, great for enthusiasts.
Umbrel: User-friendly system with a graphical interface, fast to set up.
MyNode: Platform for deploying Lightning and Bitcoin nodes on various devices.
LND: The most popular software client for running a fully functional Lightning node.

Monetization and Income Strategy

Set reasonable fees: Avoid setting fees too high or too low; monitor competitors.
Manage channels: Open channels with active nodes to increase your chances of routing payments.
Automate balancing: Use specialized scripts to manage liquidity between incoming and outgoing channels.
Build node reputation: Publish your node on monitoring platforms and maintain high uptime.

According to the latest data, to achieve tangible income, you need at least 0.05–0.2 BTC in liquidity and several months of node operation. Expected income is $1–$20 per month depending on activity, but it may grow over time.

Step-by-Step Guide for Beginners

Choose hardware and platform: Raspberry Pi (RaspiBlitz), VPS (Umbrel, LND), or a regular PC.
Install the software: Follow the instructions for your chosen Lightning client.
Launch and sync a Bitcoin node: You’ll need a full or light wallet.
Open payment channels: Deposit BTC and establish connections with popular nodes.
Set fees and monitor channel balances.
Regularly back up data and ensure security.
Analyze statistics (e.g., via 1ML.com) and optimize your node’s performance.

Practical Tips and Recommendations

Learn by doing: Start with a test node and a minimal amount.
Security is paramount: Use dedicated hardware, strong passwords, and two-factor authentication.
Monitor uptime: The longer your node stays online, the higher the chance of being included in payment routes.
Don’t invest large sums at first: Assess profitability with small amounts.
Engage with the Lightning community: Join forums, chats, and conferences to exchange experience.

Summary
Launching a Lightning node is a modern but technically challenging way to earn passive income and actively participate in the growth of the Bitcoin network. It is recommended only for users with experience in crypto infrastructure and basic Linux skills. For beginners, staking or lending may be simpler starting strategies.

2.5. Masternodes

How it works
A masternode is a specialized server that operates continuously within a specific cryptocurrency network and performs additional functions compared to regular nodes. Masternodes:

Support the decentralization and stability of the blockchain.
Process transactions, participate in validation, and speed up confirmations.
Enable extra services such as private transactions, instant transfers, network upgrade voting, and more.

A masternode operator receives passive income in the form of a share of block rewards or fees for providing these additional services. To launch a masternode, you must provide a significant collateral (stake)—a certain number of coins that are locked in your wallet.

Advantages

Above-average passive income: Masternode yields often surpass classic staking.
Contribution to network development: The masternode operator plays a key role in the coin’s ecosystem, improving security and functionality.
Long-term perspective: In some networks, masternodes have voting rights on protocol changes, influencing the project’s future.
Transparency and automation: Rewards are credited automatically, and information about masternode operations is public.

Risks and Limitations

Large initial deposit: Launching a masternode requires a substantial number of coins (e.g., Dash—1000 DASH, PIVX—10,000 PIVX).
Funds lock-up: The staked coins cannot be used or sold while the masternode is active.
Technical requirements: Requires a stable server (VPS/VDS), 24/7 operation, and the ability to set up and maintain the software.
Coin volatility: If the coin price drops sharply, the value of your stake and profits may decrease.
Security: Loss of private keys or server hacks may result in loss of control over the masternode.
Regulatory risks: In some countries, masternode operations may be classified as an investment service.

Minimum Requirements

Significant amount of coins: The exact amount depends on the cryptocurrency (ranging from several thousand to tens of thousands of dollars).
Stable server (VPS/VDS or personal): 24/7 uptime with a constant internet connection.
Basic knowledge of Linux/Windows servers and command line.
Skills in backup and secure key storage.
Official wallet or specialized software for masternode setup.

Examples of Coins and Platforms

Dash: One of the first networks with masternodes. Requires 1000 DASH to launch.
Horizen (ZEN): Two masternode categories with different collateral requirements.
PIVX: Masternodes support network privacy, collateral—10,000 PIVX.
Zcoin (FIRO), Syscoin (SYS), Energi (NRG): Popular coins with masternode functionality.

Platforms for Monitoring and Automation:

AllNodes.com: Service for launching and managing masternodes without deep technical skills.
Masternodes.online: Tracks yield, relevant coins, and statistics.

Step-by-Step Guide for Beginners

Choose a coin: Study project lists, collateral requirements, and yields (e.g., on Masternodes.online).
Prepare a wallet and buy coins: Use only the official wallet and transfer the required amount of coins to it.
Rent or set up a server: VPS/VDS with 24/7 uptime, at least 1 GB RAM, stable internet.
Install and configure software: Follow the official documentation, configure the masternode, and open necessary ports.
Register the masternode on the network: Ensure the node is active and start the staking process.
Monitor operation: Check the node’s status, update software, and make regular backups.
Receive rewards: Monitor accruals and withdraw rewards as needed.

Real Yield Examples (2024–2025)

Dash: 4–6% per annum (depends on the total number of masternodes and network size).
PIVX: 8–10% per annum.
ZEN: 6–8% per annum.

Exact yield values fluctuate depending on network load, number of masternodes, and price changes.

Practical Tips and Recommendations

Start only with reliable, well-established coins that have a strong community.
Do not trust dubious projects or promises of excessive returns.
Regularly update masternode software to protect against vulnerabilities.
Use a dedicated server and never store private keys online.
Diversify—do not keep all assets in one coin or masternode.
Be sure to study tax regulations in your country.

Summary
Masternodes are a tool for earning stable passive income and supporting the network, best suited for experienced investors with sufficient capital and technical knowledge. The entry barrier and responsibility are higher than with classic staking, but potential returns are also above average for the market.

2.6. Forks and Airdrops

How it works:
Holders of certain coins receive new tokens when new projects are launched (forks) or as part of marketing campaigns (airdrops).

Advantages:
Tokens can be received for free.

Risks:
Fraud, low value of the new coins.

Minimum requirements:
Ownership of the original coins; sometimes registration or simple actions are required.

Examples:
Uniswap (UNI) airdrop, Arbitrum airdrop, Bitcoin Cash fork.

Summary:
Airdrops and forks are “bonus” income, but beware of phishing sites and sharing personal information.

2.7. Affiliate and Referral Programs

How it works:
You invite new users to platforms and receive rewards for their registration or activity.

Advantages:
A way to earn passive income without investment.

Risks:
Risk of working with dubious projects.

Minimum requirements:
Platform registration, sharing referral links.

Examples:
Binance Referral, Bybit Affiliate.

Summary:
Referral programs are suitable for active social media users and bloggers.

2.8. Content Monetization on Blockchain Platforms

How it works:
You post articles, videos, or photos on a platform and receive income for views, likes, and comments.

Advantages:
Opportunity to monetize creativity.

Risks:
Token price volatility, dependence on content popularity.

Minimum requirements:
Create an account and publish content.

Examples:
Steemit, Mirror, Audius.

Summary:
Best for authors wishing to monetize their knowledge and creativity.

Step-by-Step Instructions

Choosing a method and platform:

Determine your technical knowledge and available capital.
Compare platform conditions (returns, minimum amounts, reputation).

Setting up a wallet/account:

Use official wallets or reputable exchanges.
Enable two-factor authentication.

Minimizing risks:

Never store large sums on exchanges.
Use hardware wallets for major assets.
Double-check addresses and details before transactions.

Summary:
Beginners should start with simple and transparent platforms, gradually increasing their level of knowledge.

Real Risks and Pitfalls

Loss of funds due to mistakes (wrong addresses, lost seed phrase).
Scams, phishing sites, smart contract bugs.
Risk of asset lock-up (e.g., if the platform becomes illiquid).
Tax consequences—in some countries, income must be declared.

Summary:
The main protection is vigilance, two-factor authentication, and regular platform audits.

Common Mistakes

Ignoring DYOR: Not researching the project before investing.
Trusting unverified projects: Investing in “too good to be true” offers.
Storing funds on exchanges: Not controlling private keys.
Falling for hype: Reacting to social media buzz.

Tip:
Always do your own research before investing; use only reputable sources.

Comparison: Passive Income in Crypto vs. Traditional Investments

Criterion	Cryptocurrency	Traditional Investments
Returns	High but volatile	Moderate, more stable
Risks	High, many scams	More transparent
Accessibility	24/7, worldwide	Restricted by jurisdiction
Minimum entry amount	From $1	Often higher

Summary:
Cryptocurrencies offer more opportunities and freedom, but require caution and self-education.

FAQ — Frequently Asked Questions

1. Do I need to pay taxes on passive crypto income?
Yes, in most countries it is considered income and must be declared.

2. Can I lose all my funds?
Yes, if you make a mistake, choose a scam project, or lose access to your wallet.

3. Which platform should a beginner choose?
We recommend reputable exchanges: Binance Earn, Coinbase, Kraken, or well-established DeFi platforms (Aave, Compound).

4. How much can you really earn?
Returns typically range from 2% to 20% per year and higher, but higher rates usually come with higher risks.

Conclusion

Earning passive income in cryptocurrency is a modern and accessible tool for investors at any level. The key to success is ongoing education, vigilance, and only choosing trusted solutions. Never invest more than you are willing to lose.

Future Prospects

Every year, new passive income options emerge: automated DeFi protocols, NFT staking, AI investment products. Stay up to date and regularly review your strategy.

Glossary of Terms

Proof-of-Work (PoW): The algorithm used for mining.
Proof-of-Stake (PoS): The algorithm where new coins are awarded to holders who lock their assets.
DeFi: Decentralized Finance.
Staking: Locking coins to support a network.
Lending: Providing cryptocurrency as a loan.
Airdrop: Free distribution of coins.
Referral program: Earning bonuses for inviting new users.
DYOR: “Do Your Own Research”—the golden rule for crypto safety.