Crypto income
There are many ways to earn yield from digital assets. They differ enormously in risk, mechanism, and sustainability.
Protocol staking
Validators earn newly issued tokens plus transaction fees for securing a proof-of-stake network. Ethereum, Solana, Cosmos, etc. Yield in the underlying token; you keep its price risk.
Lending
Depositing assets with an on-chain or centralised lender in exchange for interest paid by borrowers. Sensitive to counterparty and smart-contract risk (see Celsius, BlockFi).
Basis trades
Long spot, short perpetual future. When the future trades at a premium, you capture the difference while remaining delta-neutral. This is a large component of institutional crypto yield.
Funding-rate capture
Perpetual futures pay/receive funding depending on premium. Rotating exposure to venues with positive funding captures this income stream.
Market-making
Providing two-sided liquidity earns the spread plus exchange rebates. Requires active inventory management and hedging.