The Five Best Crypto Apps For Passive Income In 2025

Crypto users in 2025 have more opportunities than ever to generate passive income through staking, lending, and yield farming. With the market maturing, both centralized exchanges and decentralized finance (DeFi) protocols now offer structured, transparent, and relatively secure ways to earn yield on idle crypto assets.

This article explores five of the most credible platforms— two centralized and three decentralized — that enable users to earn passive income, focusing on real yields, supported assets, security, and user control.

Best centralized crypto apps for passive income

Coinbase

• Method: Staking
• Supported assets: Ethereum (ETH), Cardano (ADA), Solana (SOL), Polkadot (DOT), Cosmos (ATOM), and others.
• Typical yield: 3–6% APY, depending on the network.

Coinbase is a US-regulated public company (NASDAQ-listed), with a longstanding record of protecting user assets. It uses cold storage for 98% of customer funds and maintains crime insurance.

Coinbase staking services have no record of fund losses due to staking operations. The company charges a 25–35% commission on staking rewards, and this is reflected in the net APY presented to users.

Users can opt into staking by holding supported assets and enabling staking with one click. Rewards are distributed directly to the user account. While the technical staking process (validator selection, slashing protection, unbonding delays) is managed by Coinbase, users retain flexibility, with unstaking options clearly outlined. However, specific network rules — like Ethereum’s exit queue — can delay withdrawals.

However, custodial control means users must trust Coinbase to manage keys securely. Fees reduce final returns compared to self-staking. Regulatory developments may also impact the availability of staking services in certain regions, particularly the US.

Nexo 

• Method: Lending interest (via crypto savings accounts)
• Supported assets: BTC, ETH, USDT, USDC, BNB, XRP, and over 40 other cryptocurrencies
• Typical yield: 4–8% APY on major assets; up to 12% on stablecoins with fixed terms and loyalty tier boosts.

Nexo supports real-time reserve audits and holds a $775million insurance policy on custodial assets. The platform is SOC 2 Type II certified and has not suffered major security breaches. Funds are lent to overcollateralized borrowers, and Nexo maintains a conservative risk model compared to defunct competitors.

Users can deposit assets into ‘Flex’ accounts for daily compounding interest or commit to 1–3 month fixed terms for higher rates. Nexo also includes a loyalty program, which offers better rates based on how much NEXO token the user holds, though this introduces token price risk. Interest is paid out daily and is either in-kind or in NEXO, depending on user preference.

Services are not available in the US due to regulatory constraints. Yield depends on borrower demand and market conditions. Users should understand the risks of token volatility and rehypothecation (Nexo lends out user assets to generate yield).

Best decentralized crypto apps for passive income

Lido

• Method: Liquid staking
• Supported assets: ETH (via stETH), SOL (stSOL), MATIC, DOT, KSM
• Typical yield: ~4% APY on ETH

Lido uses a network of over 700 distributed validators and has undergone multiple independent security audits, with over $4m spent on security reviews and bug bounties. Governance is handled via a DAO, and key protocol decisions — including reward fees — are transparent and community-driven.

Users stake ETH and receive stETH, a liquid token representing their stake. stETH appreciates in value relative to ETH over time, reflecting earned rewards. It is widely integrated in DeFi protocols, allowing holders to use stETH as collateral or for liquidity provisioning while still earning staking rewards.

stETH is not always pegged 1:1 to ETH, and may trade at a discount in stressed markets. Users must manage withdrawal queues when unstaking ETH, particularly if exiting via the Lido protocol rather than secondary markets. Lido’s growing dominance in Ethereum staking has raised centralization concerns.

Aave 

• Method: Lending
• Supported assets: ETH, WBTC, USDC, USDT, DAI, and other tokens across Ethereum, Polygon, Avalanche, Arbitrum, and Optimism
• Typical yield: 1–3% APY on ETH/WBTC; 3–8% on stablecoins (variable).

Aave is among the most audited DeFi protocols, with third-party reviews and formal verification of contracts. It operates a ‘Safety Module’, where staked AAVE tokens act as an insurance pool against shortfalls. The platform is governed by a DAO and has sustained long-term operational security.

Users deposit assets into Aave pools and receive aTokens that accrue interest. The process is non-custodial; users can withdraw anytime if liquidity permits. Aave also supports cross-chain functionality and interest rate optimization features like ‘E-Mode’ for correlated assets.

Interest rates fluctuate based on market demand. Smart contract risk and liquidity withdrawal delays can occur in high-utilization scenarios. Aave’s interest rates are often moderate and best suited for stable income rather than high-yield chasing.

Yearn Finance 

• Method: Automated yield farming through vaults
• Supported assets: DAI, USDC, USDT, ETH, WBTC, Curve LP tokens, and others
• Typical yield: 2–10% on stablecoins; higher on advanced vaults.

Yearn has undergone multiple audits and maintains an active security team. While it has experienced isolated vault exploits (e.g., in early 2021), response protocols and vault isolation prevented systemic loss. Users can purchase smart contract insurance for additional protection.

Users deposit assets into vaults that automatically deploy complex DeFi strategies across protocols like Aave, Curve, and Compound. Yields are auto-compounded, and strategies are optimized by Yearn strategists. The system is non-custodial, with vault share tokens representing ownership.

Smart contract complexity and underlying strategy risk can introduce layered exposure. Management and performance fees apply. Users should evaluate each vault’s composition and historical returns before depositing.

Centralized vs decentralized crypto apps for passive income

When choosing how to earn passive income from crypto, one of the first decisions users face is whether to use a centralized platform or a decentralized protocol. Both offer viable methods to earn rewards through staking, lending, or liquidity provision — but they differ significantly in custody, control, risk exposure, and user experience.

Centralized platforms, such as Coinbase or Nexo, offer streamlined access to passive income products. These companies manage the backend processes, including staking nodes or lending operations, and typically provide customer support, insurance coverage, and regulatory compliance. However, users must trust the platform to securely manage their assets.

Decentralized protocols, like Lido, Aave, and Yearn Finance, allow users to interact directly with smart contracts. Funds remain in the user’s control unless actively lent or pooled. This model reduces counterparty risk but introduces smart contract and user management risk, as there is no centralized authority to assist if something goes wrong.

Here’s a breakdown of the key differences:

Final thoughts

These five platforms represent a blend of simplicity, transparency, and credibility in crypto passive income strategies for 2025. Coinbase and Nexo offer convenient custodial options for users seeking hands-off income from major assets. Lido, Aave, and Yearn cater to users comfortable with DeFi and seeking control, composability, or slightly higher yields. All five stand out for their security practices and real-world adoption.

Regardless of platform type, users should always assess platform security, yield sustainability, asset risk, and regulatory exposure before committing funds. In a maturing crypto market, sustainable passive income is increasingly viable — but informed participation remains essential.

1. 01.

   Are crypto passive incomes legit?

   

   Yes, crypto passive income methods like staking, lending, and yield farming are legitimate and widely used. However, legitimacy depends on the platform’s credibility and transparency. Users should prioritize audited protocols, insured custodians, and avoid promises of unsustainably high returns.

2. 02.

   How does yield farming work?

   

   Yield farming involves moving crypto assets between DeFi protocols to maximize returns. Users typically provide liquidity to pools (e.g., in DEXs) or stake tokens in smart contracts to earn interest, trading fees, or reward tokens. It’s often automated through strategies managed by aggregators like Yearn Finance.

3. 03.

   What is the safest way to earn from crypto?

   

   The safest methods are staking on reputable platforms (like Coinbase or Lido) and lending stablecoins via audited DeFi protocols (like Aave). Non-custodial options with transparent on-chain operations and smart contract audits reduce centralized risk. Always assess counterparty and smart contract exposure before committing funds