Can You Earn Passive Income with Crypto in Australia

If you’re an Aussie wondering whether you can earn passive income with crypto in 2025, you’re not alone. With more people ditching traditional savings accounts and exploring digital assets, passive income through crypto is a growing trend. I’ve personally tried a few platforms myself — and let me tell you, it’s absolutely possible, if you do it right.

In this guide, I’ll break down the top ways Australians are earning passive income with crypto in 2025, how it works, what the ATO says about it, and which methods are the safest and most profitable.

What Is Passive Income in Crypto?

The concept passive income implies that one receives money without having to go to work daily. This generally implies, in crypto that you will be rewarded simply by holding or lending/staking the value of your crypto assets. It’s like earning interest — but often at much higher rates than banks.

1. Crypto Staking

Locking your crypto is referred to as staking, which involves locking your crypto to facilitate the functioning, security, and operation of a blockchain network (e.g., Ethereum or Solana network). This way, you receive staking rewards.

How much can you earn?

• Ethereum: 3%–5% per year
• Cardano: 3%–6%
• Solana: 5%–7%

Popular Aussie-friendly platforms for staking:

• CoinSpot (super beginner-friendly)
• Binance Australia (low fees)
• Kraken (well-regulated)

My tip: Always check whether your staking rewards are flexible (you can withdraw anytime) or locked for a fixed term.

2. Crypto Savings Accounts (CeFi Lending)

This works like a crypto savings account. You deposit your coins, and the platform lends them out to borrowers. You earn interest in return.

Popular platforms in 2025:

• Nexo
• Crypto.com Earn
• Binance Earn

Interest rates (rough example):

• Stablecoins (like USDT/USDC): 6% to 10%
• Bitcoin & Ethereum: 2% to 5%

Risk note: These platforms are custodial. Your funds are managed by the company, not on-chain — so use ones with insurance or a good track record.

3. DeFi Yield Farming

DeFi (Decentralised Finance) lets you earn yields by providing liquidity or farming tokens directly from smart contracts.

Popular DeFi platforms used by Aussies:

• Aave
• Uniswap
• Yearn Finance

This method is riskier but can offer higher returns (10%+). You’ll need a wallet like MetaMask and basic knowledge of gas fees, smart contracts, etc.

If you’re tech-savvy and okay with some risk, DeFi can be profitable. I started small with USDC pairs and was surprised how quickly it added up.

4. Running a Validator Node (Advanced)

If you have a significant amount of crypto (like 32 ETH), you can run your own validator node. This is a more hands-on and technical method but pays steady rewards.

Passive income potential: 4%–6% annually (plus full control)

But this isn’t for everyone — you’ll need:

• Tech skills
• A reliable internet connection
• Some capital upfront

5. Crypto Cashbacks & Rewards

Some Aussie-friendly debit cards like Crypto.com Visa Card and Binance Card offer cashback in crypto when you spend. It’s not traditional staking or lending, but it’s still passive earning in a way.

Example:

• Spend $1,000/month → get 1%–5% cashback in CRO or BNB

It adds up fast, especially if you pay bills or groceries with it.

Is It Legal to Earn Passive Income from Crypto in Australia?

Yes — but the ATO sees most crypto earnings as taxable.

• Staking rewards = Ordinary income
• Lending interest = Ordinary income
• Capital gains = Apply when you sell or swap

Tip: Keep a log of all staking and earning transactions. You can use a tool like Koinly or CoinTracker to automate this.

Also Check: How to Buy Your First Bitcoin in Australia Without Breaking the Bank

How I Personally Earn Crypto Income

I use CoinSpot for staking ETH and ADA, Crypto.com Earn for stablecoins, and occasionally try Uniswap farms when I’m feeling adventurous. On average, I earn between $150–$300 per month, depending on market conditions.

For beginners, I always recommend:

• Start with staking on platforms like CoinSpot or Kraken
• Use stablecoin lending to avoid volatility
• Avoid going after the offers that promise high APY, as they are most of the time unrealistic

Conclusions: Is It Worth It?

Of course, as long as you are cognizant of the risks involved. Crypto passive income isn’t truly “set and forget” like a term deposit, but with the right approach, it can become a consistent side income. Diversify, research, and always check fees.

In 2025, with interest rates still relatively low and inflation still biting, crypto is one of the few ways Aussies are actually growing their savings.

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