Hey, I am wondering is it truly possible that my BTC works for me , without revealing my private keys and also without KYC ?
I do not think so, if you are privacy concerned, hold you bitcoin on noncustodial wallet and make passive income if the price of bitcoin rise.
To make active income with bitcoin, you will depend on third party.
I do not have much experience about staking or lending bitcoin, but I think all of those processes would involve you handing your assets over to a third party.
You can stake some altcoins with you having your keys with you but this will not possible for bitcoin.