Generating income with crypto does not mean receiving money automatically or without risk.

In many cases, the yield comes from specific activities within the crypto ecosystem, such as staking, lending, liquidity provision, or incentives distributed by protocols.

Before exploring any strategy, it is worth understanding where that return comes from, what costs may appear, what risks are involved, and under what conditions you can move or withdraw your assets.

For those who are still getting familiar with digital assets, the belo app can be a starting point to track options for receiving, converting, and moving crypto.

What it means to put crypto to work

Those who bought Bitcoin, Ethereum, or stablecoins and left everything in a wallet without moving it gave up a possibility: using those assets in protocols that distribute rewards to those who provide liquidity. 

It is not a guarantee of gain; it is an option that exists in the crypto ecosystem and carries its own risks.

The 2026 landscape has more regulatory clarity in several Latin American countries than it did a few years ago. This has opened up space for more people to consider yield strategies with crypto assets that previously seemed inaccessible. 

Three categories have consolidated as the most discussed, each with a different risk profile and functioning.

Three possible paths to passive income with crypto

Staking is the most direct entry point. You lock tokens in a validation protocol and receive rewards proportional to the locked time and volume.

The yield and unlock period vary according to the network and available conditions. 

It is worth remembering that if the price of the token drops during the staking period, the result in your local currency may be negative, even with a positive yield in terms of the original asset.

The yield products on stablecoins work differently. Platforms lend your stablecoins to borrowers and return a rate.

Since the asset is pegged to the dollar, you eliminate exposure to the volatility of the asset itself. The risk is concentrated in the platform: if it suffers solvency issues or attacks, your funds get exposed.

The third category is collateralized loans. It works the opposite way: you borrow using crypto as collateral and release liquidity without selling your position.

It makes sense when you believe that the asset given as collateral will appreciate above the cost of the loan. 

It is the most complex strategy and requires frequent monitoring, since a sharp drop in the price of the collateral can trigger automatic liquidation.

What to review before the first deposit

Every yield strategy with crypto assets needs a verification basis. Before allocating any amount, go through this checklist:

• Verify the custody of your assets. Prioritize platforms that keep private keys in their own infrastructure with fund segregation.

• Confirm that smart contracts have been audited by recognized independent firms.

• Diversify. Never concentrate all of your capital in a single platform or strategy.

• Assess the unlock period. Make sure you can access your funds when you need them.

• Keep receipts of every transaction made.

Comparison: three yield strategies

Strategy · How it works · Principal risk · What to monitor

Staking · Locks tokens to validate transactions and receives rewards · Token price drop, slashing, lock-up period · Unlock period, validator reputation

Yield in stablecoins · Platform lends your stablecoins and returns a rate · Platform solvency, protocol attacks · Audits, TVL, platform history

Collateralized loan · Uses crypto as collateral to borrow another currency · Automatic liquidation in price drops · Collateral-to-debt ratio, price of the asset given as collateral

Want to explore the crypto universe with more clarity? With belo, you can track through the app alternatives for moving and converting digital assets, according to the features available for your account and country.

Also, check out the belo blog for more content on cryptocurrencies and digital finance. For questions about how the platform works, check the help center.

Tax considerations

If you want to explore the crypto universe with more clarity, the belo app can help you track options for moving and converting digital assets.

Also, check out the belo blog for more content on cryptocurrencies and digital finance.

Frequently asked questions about generating passive income with crypto

What is the minimum amount to start generating passive income with crypto?

It varies depending on the platform and strategy. Before allocating any amount, calculate whether transition costs are compatible with the expected yield. Check the minimum amounts and conditions displayed on the platform before confirming.

Is it safe to leave cryptocurrencies on staking platforms for long periods?

It depends on the quality of the chosen platform. Prioritize companies with public audits, fund segregation, and a proven track record. Even so, do not allocate more than you can afford to lose on a single platform.

Do crypto earnings need to be declared for income tax?

Earnings from crypto assets can generate tax obligations. Rules vary according to the type of transaction and each person's situation. Consult an accountant or official source before making any tax decisions.

Can I lose money even with positive yields?

Yes, especially in staking. If you receive rewards in tokens whose price drops during the period, the result in your local currency can be negative. Stablecoins reduce this specific risk, but introduce others, such as the platform's solvency risk.

How long does it take to withdraw funds from staking products?

It varies by blockchain and platform. Always check the unlock period before depositing and assess whether this timeframe is compatible with your liquidity needs.