Passive Income With Crytpo

in LeoFinance4 months ago (edited)

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Passive Income With Crypto

Nearly 10 years ago I decided to heavily commit to building passive income streams. Here's the kicker though. Every so called passive income really isn't passive it always requires some amount of work. The trick is to make your money work for you and earn you more than the time you invest. This takes you away from exchanging time (a limited resource) for money (a non limited resource).

I invested in many of the traditional senses of passive income and while it did ok for a few years those days seem to now be somewhat obsolete and being replaced instead with crypto at much higher values. Let's take a look.

Savings

One of the easiest ways to start building some form of passive income is to have a savings account. Now of course interest rates are pure poot right now and you're actully losing buying value every day but for those who want to take the safe road this is a first place spot to do so. By putting money into a savings account you earn about a half a percent but having it in a checking account you earn nothing. This small interest is passive and at least helps to minimize the lose of your buying power.

However today we now have DeFi and with it we even have stable coins like HBD Hive Back Dollar which earns 12%. Idk about you but if a savings account was paying me 12% which is far above a dividend stock earning just for locking it up for three days I'm all over that!

DeFi

DeFi has become popular but with it comes the chance of impermanent loss which is something many people struggle with understanding what that means. However these platforms often pay much higher values such as 40%+ there are even some new systems for delegated proof of stake which allow you to earn passivly a token of that defi platform without risking any of your funds. In a way I feel like the Dpos system is going to take hold on defi moving forward but most likely pay a lower yield this year. Less risk less rewards, a little more risk greater rewards. It's the same thing we see in the real world from investors.

Blogging

I started blogging back in 2008 and it's still a profitable thing to do on your own. However yet again crypto is crushing the traditional sense of blogging. Before I would spend hours if not days writing up articles and do my best to get them to rank on search engines. From there I would earn a little from ads, some from affiliate commissions and so forth. However once steem but now using hive took that over. Now I could blog and earn crypto revenue on that post for 7 days and from there still earn passive income from affiliate links within the post. For example I once heavily wrote about faucets such as Freebitco.in and from that I've earned thousands of bitcoin from affiliates over the last 6 years.

The next evolution in this I hope to see is a passive way to earn from articles after 7 days. In a way adding in affiliate links is one way to do this and perhaps it won't ever be up to a platform such as LeoFinance, Hive etc to come up with a passive means from blog posts.

Gaming

In a way DeFi has kind of entered gaming. But in another gaming itself is now a possible profitable venture. Many games have land investments, rentals and more. For example Splinterlands allows me to rent out my cards to others providing me a passive income of DEC on those cards. At the moment I'm renting out on average 1,000 DEC per day at about half a cent for each DEC that's $5 a day right now from rentals. Now when land comes into effect I have a feeling renting out that land and cards will increase again providing me with even more passive income. There was once a time on splinterlands where I was renting out nearly $70 worth of DEC daily. The other thing is I also get SPS from the DEC airdrop which is a passive income in itself as well!

Digital land can be rented out which is pretty crazy you can think of it pretty much like the digital real estate company. Where renting out houses is something many people do for passive income.

Overview

What we are seeing is a HUGE shift in value away from traditional methods and into the digital space. While yes it does have wild swings they go in both ways up and down. The key is to do your own research and figure out projects you believe in.
*This article is not financial advise do your own research before investing.

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Previously, real estate and renting a house were considered passive income. But considering the cost of selling the house, I don't think it has a very profitable income.
As you mentioned, blogging is a good passive income method. However, it is also possible to buy and sell coins or tokens. Profits are gradually withdrawn from the system.

I never looked into generating wealth apart from working and getting a monthly salary. Defi and my recent involvement in crypto have helped me to understand the potential of building wealth. I am looking forward to using these newfound skills.

This brings back memories of my Blogger days, when I struggled to learn the craft and build an audience. The blockchain ended up filling that void while offering a sense of ownership I've never felt before.

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This takes you away from exchanging time (a limited resource) for money (a non limited resource).

It is always about the balance between time and money... Yeah, people say that you can't buy time, but you can exchange some money and get additional time... And the answer is passive income!
Thanks for a reminder about the way of earning money! People very often think about crypto as an investment of money, and not as a way to EARN money...


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Comes from @ourpick and your post is really good :3 👍it's good to see another perspective for passive income in crypto

There is always some work (or money) required to earn money - so it is not really passive. But you can definitely reduce your dependence on one or two main income streams by diversification onto others. And crypto's can be a great way to build another income stream.

Cheers,
@andy-plays

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