How to Set Up Anchor Protocol and Start Earning Passive Income

Photo by NeONBRAND on Unsplash

In this post, I’ll share why I started using Anchor Protocol for savings, how I got started, and my plan to use Anchor Protocol to generate passive income.

I may look back on October 12, 2021 as a momentous day in my passive income journey.

Today, I made my first deposit of 90 UST (roughly equivalent to $90 as UST is what’s known as a stablecoin, or a cryptocurrency pegged to the USD) into Anchor Protocol. Anchor Protocol is a crypto savings account that currently pays nearly 20% APY. This is 40 times better than the 0.5% or so that even the best “high yield” savings accounts are offering right now.

20% APY is high enough to generate significant passive income with a relatively small balance. It’s so high, it seems too good to be true. But I would have said the same thing about Bitcoin in 2017 when it went from under $1,000 to over $17,000 in less than a year and now four years later, it’s tripled since then. Instead, I did some minimum viable research, believed the value of BTC would continue to increase, made my first purchase, and kept buying and hodling ever since, even through the severe downturns.

I will say the time it took for me to be willing to try Anchor Protocol after learning about it was…