Ethereum isn’t just a digital asset sitting in your wallet. It’s also a potential source of passive income. Through staking rewards, lending platforms, or decentralised finance (DeFi) protocols, Ethereum holders have multiple ways to put their crypto to work.
With last year’s Ethereum Merge solidifying proof-of-stake and the Shanghai upgrade increasing withdrawal flexibility, earning yield has never been more accessible. So, how can you maximise returns on your ETH? Here are the best options available in 2025.
What is Passive Income?
Passive income refers to earning financial returns with minimal ongoing effort. Unlike active income from work, passive income generates returns without requiring constant involvement.
Can You Earn Passive Income With Ethereum?
Yes. Several methods allow Ethereum holders to generate passive income. The most popular ones are crypto savings accounts, staking, and yield farming.
The Four Best Ways to Earn Passive Income With Ethereum
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1. Crypto Savings Accounts
Crypto savings accounts operate like traditional bank savings accounts, offering interest on deposited funds. Ledn’s Growth Accounts, for example, provide up to 3.5% APY on Ethereum, making them a straightforward option with minimal learning requirements.
Minimum Investment: Varies by platform, but usually 0.01 ETH or more.
Best For: Anyone looking for a simple way to earn interest.
Read more: Best Ethereum (ETH) Savings Accounts in 2025
2. Staking
Following Ethereum’s transition to Proof-of-Stake, networks now reward users who help secure their blockchains. Solo staking, the most profitable method, requires 32 ETH to validate a node. Those with less ETH can participate in staking pools, sharing rewards proportionally. With the Shanghai upgrade, stakers now have more flexibility in withdrawing their assets.
Minimum Investment: 32 ETH for solo staking; no minimum for staking pools.
Best For: Those willing to commit ETH long-term and earn steady rewards.
3. Yield Farming
Yield farming involves locking ETH in a DeFi protocol to provide liquidity for exchanges, lending platforms, or other decentralised services. In return, users receive financial incentives. While it requires more knowledge than a savings account, it is generally easier than managing a staking node.
Minimum Investment: Varies by platform; some protocols require at least 0.1 ETH.
Best For: Those familiar with DeFi and comfortable with risk.
Read more: Cefi vs Defi - Key Differences Explained
4. Ethereum Cashback Credit Cards
Ethereum cashback cards are a relatively new way to earn rewards while spending. These credit cards allow you to make everyday purchases while earning around 3% cashback or using ETH as collateral.
Minimum Investment: None (requires credit approval)
Best For: Crypto holders looking for passive rewards on spending
| Crypto Savings Account | Staking | Yield Farming | Ethereum Cashback Credit Cards | |
| Minimum Investment | 0.01 ETH+ | 32 ETH (solo) or no minimum (pool) | 0.1 ETH+ | None (requires credit card approval) |
| Estimated APY | Up to 4% | 4-5% | Varies (5-15%) | 3% cashback in ETH |
| Best For: | Beginners looking for a simple way to earn interest | Long-term holders seeking steady rewards | DeFi users comfortable with higher risk | Crypto users looking for passive rewards on spending |
| Flexibility: | High | Medium | Low | Low |
Risks of Earning Passive Income With Ethereum
Using your Ethereum to generate passive income offers steady returns, but it also comes with risks. Market fluctuations, regulatory changes, and platform stability can impact your ability to access or profit from your holdings.
Volatility Risk
Most passive income methods require locking up ETH for a set period. If Ethereum’s price drops sharply, accessing and selling assets may not be immediate, affecting potential exit strategies.
Regulatory Risk
Governments continue to refine crypto regulations. If Ethereum faces restrictive policies, its value and usability could be impacted.
Bankruptcy Risk
Centralised platforms for passive income generation, such as savings accounts and staking services, can face financial instability. If a provider declares bankruptcy, retrieving funds may be difficult or even impossible.
Is Earning Passive Income With Ethereum Right for You?
Earning passive income is a simple and low-effort way to make your Ethereum work for you. It provides steady returns with relatively low risk compared to active trading. However, it may not be the best fit for everyone.
If you’re looking for high returns and are comfortable with market fluctuations, trading may be more suitable. But if you’re prioritising steady earnings with lower involvement, staking, savings accounts, or yield farming offer practical solutions.
Start Making Money With Ethereum
If you have Ethereum and want to start earning passive income, Ledn’s Growth Accounts are a simple option with up to 3.5% APY. They’re designed to offer flexibility and security, allowing you to move your funds in and out of interest-earning accounts whenever you like. Plus, you can monitor how your yield is generated with clear, easy-to-understand insights.
Read more: How to Use Ledn to Grow Digital Wealth
Why Hold Ethereum with Ledn?
Passive income: Earn up to 3.50% APY while you hold.
Open term: Maintain access to your Ethereum at all times.
Full transparency: Access all account details and yield tracking via the client dashboard.
How Does Ledn Generate Interest?
Ledn generates interest paid in BTC and ETH Growth accounts by working with institutional market makers. These institutions borrow BTC and use it as collateral on exchanges where they provide market-making services or settle trades. They do not take a directional view of the markets and are all vetted and continuously monitored by Ledn’s risk management team. Ledn works with a diversified list of borrowers to mitigate the impact of any single borrower on its business.
For full transparency, Ledn publishes a monthly Open Book Report, detailing how interest is generated and how assets are protected.
Conclusion
If you’re holding Ethereum, you have the opportunity to generate passive income through staking, yield farming, cashback credit cards, and crypto savings accounts. For those looking for a secure and flexible way to earn interest, Ledn’s Growth Accounts offer up to 3.50% APY with full transparency and easy fund access.
Start earning today. Visit Ledn to open an ETH Growth Account.
This article is sponsored by 21 Technologies Inc. and/or its subsidiaries (“Ledn”) and is for general information, discussion, or educational purposes only and is not to be construed or relied upon as constituting legal, financial, investment, accounting, tax, estate-planning, or other professional advice or recommendation. Please read Ledn’s full Risk Disclosure Statement and Disclaimers.
