The crypto space is evolving and remains a target for scams, especially cloud mining. On March 6, 2025, the NASAA warned that 38.9% of regulators expect an increase in AI-driven crypto scams. The scams use advanced tools to deceive investors; thus, more transparent crypto earning opportunities are needed.
Cloud mining scams are offering high returns by allowing clients to lease computer power. The majority of the operators, however, take cash and disappear without distributing earnings. Social media posts indicate further instances of money lost to dubious cloud mining software.
Below are five blockchain-validated ways to increase crypto holdings with lesser risk.
1. Staking Crypto
Crypto staking locks up cryptocurrency in a wallet to support a Proof-of-Stake (PoS) blockchain, helping validate transactions and secure the network in return for rewards. Crypto staking is different from mining because staking is renewable and depends on token number, time, and network conditions.
All platforms provide staking services with returns of up to 30% APY based on liquidity strategies. Trial periods are offered by some for low-risk testing. Referral programs and bounty rewards are also sources of additional passive income.
Investors must take into account platform security, governance, and whether rewards are paid from the network or provider when staking. Staking employs open blockchain technology to secure reward distribution, as opposed to cloud mining.
OnStaking, founded in 2015, is one of the best crypto staking platforms serving over 735,000 users across more than 70 blockchain networks. With a total investment of $130 million and 250,000 registered accounts, it has built a reputation for reliability and user focus.
Here is a snapshot of their staking plans, combining daily earnings with optional referral bonuses:
| Staking Plan | Investment | Duration | Daily Earnings | Referral Rewards | Total Earnings |
|---|---|---|---|---|---|
| Free Trial Staking | $100 | 1 day | $1.00 | $0.00 | $1.00 |
| POL Staking | $200 | 3 days | $2.50 | $0.00 | $7.50 |
| Chainlink Staking | $1,800 | 11 days | $21.96 | $14.40 | $241.56 |
| Tron Staking | $5,000 | 15 days | $76.00 | $45.00 | $1,140.00 |
| Ethereum Staking | $50,000 | 40 days | $1,185.00 | $1,050.00 | $47,400.00 |
| Avalanche Staking | $160,000 | 90 days | $4,960.00 | $4,960.00 | $446,400.00 |
2. Liquidity Pools
Liquidity pools are the backbone of DEXs such as Uniswap and PancakeSwap. Investors put crypto pairs, such as ETH/USDC, into smart contracts as collateral for trades. Liquidity providers receive 0.1% to 0.3% of trading fees per trade. Returns on investment are 5% to 20% depending on the pools’ usage and asset stability.
Liquidity pools accept crypto but are vulnerable to risks such as impermanent loss due to the volatility of asset prices. Smart contract exploits are also a security risk. Similar to staking, they are not autonomous and do not usually provide trials or referrals. They do provide DeFi consumers with an open-sourced alternative to cloud mining.
Unlike OnStaking’s automated system, liquidity pools require more involvement and risk awareness, and there is no trial or referral system. However, they’re also a legit alternative grounded in verifiable blockchain activity, a good choice for DeFi enthusiasts who want to avoid cloud mining.
3. Yield Farming
Yield farming is where investors lend or stake cryptocurrency on DeFi platforms such as Aave and Compound to earn interest or governance tokens. Yields can be very high, usually between 20% to 50% APY or more depending on the platform and protocol.
Yield farming is lucrative but unstable and must be watched continuously. Risks include smart contract failure, liquidation if the market is volatile and expensive gas fees. It is not like cloud mining in that it relies on open blockchain mechanics but is more complex, which may not be suitable for beginners. But it lacks OnStaking’s ease—no trial, no automated trades—making it less beginner-friendly.
4. Crypto Savings Accounts
Crypto savings accounts are similar to bank accounts. Websites such as Nexo and BlockFi allow users to deposit Bitcoin (BTC) or stablecoins to gain interest, typically 5% to 12% APY. Interest is returned monthly or weekly, with some offering flexible withdrawals, while others need locked money for improved rates.
Crypto savings accounts are subject to regulation in certain jurisdictions and are safer than cloud mining but can still become insolvent or have regulatory problems. In contrast to staking or yield farming, which are more profitable, savings accounts prioritize stability, which will be attractive to risk-averse investors. Unlike OnStaking’s 30% APY or referral bonus, savings accounts prioritize stability over growth, appealing to risk-averse investors.
5. Dividend-Paying Tokens
Some of these cryptocurrencies, like dividend tokens, distribute profits to owners. Examples include KuCoin Shares (KCS) and VeChain (VET) that offer passive income through fees from trading or token rewards. The returns are between 5% and 15% APY depending on the performance of the platform as well as in the market.
Dividend tokens are more liquid than staking, with no lock-up period. Their returns are less predictable and subject to market sentiment. Without automation and fixed returns, they are still a choice for long-term investors seeking passive income.
But compared to OnStaking’s structured plans, they’re less predictable and have no automation, but great for patient investors who bet on a platform’s future.
Conclusion
AI scams are increasing, and hence investors must be careful with crypto investments. Cloud mining is most often related to scams, and this necessitates alternatives that offer blockchain transparency.
Crypto staking, liquidity pools, yield farming, savings accounts, and dividend tokens each carry distinct risk-reward profiles. Staking has blockchain-verified payouts, and liquidity pools and yield farming require ongoing upkeep.
Savings accounts are stability-oriented, and dividend tokens enable profit-sharing without locks. Knowing these options enables investors to make better choices and stay clear of fraud in the complicated crypto market.
