Earn risk-free passive income
cabbage-dealer is a bid bot that is sharing 100% of the daily rewards received with its delegators. In other words, cabbage-dealer is taking a cut of 0% and instead passing on all profits straight to those who make the bid-bot a reality, the delegators.
To become a delegator and begin earning passive income is easy, simply use the following tool created by @yabapmatt:
https://steembottracker.com/delegation.html
Follow the steps below to delegate using the tool:
- Enter your account name in the Delegator field
- Enter "cabbage-dealer" in the Delegatee field
- Enter the amount of Steem Power you wish to delegate in the Amount field
- Click the Delegate! button
After delegating you will receive a confirmation memo in your wallet and your will begin receiving your daily rewards from the next withdrawal.
Now that you are a delegator to @cabbage-dealer you will begin to earn risk-free passive income as you can cancel your delegation at any time and you are not required any further actions to maintain your income stream.
If however you wish to take a more active role in shaping the future of cabbage-dealer as a bid-bot you are more than welcome to by joining me on discord. I am open to any suggestions and collaboration opportunities.
Important Information
The following is important information one must consider and understand before delegating.
The minimum amount of SP to delegate to receive daily rewards is 10-20 SP, anything below will be eligible for a daily reward that is too small to transfer. It should also be noted that there is no maximum delegation amount, simply put, the more you delegate the more you will earn, as the higher the bot's vote value the more popular and hence more filled each bidding round becomes and thus the higher the rewards for delegators. Therefore, all delegations from small to large are welcomed, as each SP increase is important and will benefit all delegators.
Delegating is risk-free, when you delegate you still hold ownership of your SP, you are simply lending it, and as such you can lend and return your SP whenever you see fit. There is 0 chance for you to ever loose ownership of your SP by delegating, it will always remain yours and hence it is risk-free. If you delegate to @cabbage-dealer and are ever unhappy with the way the bid-bot is run or with the amount the rewards you get, you are free to cancel your delegation and invest it elsewhere. It should be noted that upon cancellation it does take 1 week for your SP to return back into your account - this is a rule hard coded into the steem blockchain by steemit inc. to prevent abuse.
Before delegating it is important to conduct appropriate market research as to the various returns on the market, for the 1 week cool down period to return your SP after cancelling your delegation is an opportunity cost that needs to be considered. To explain further, although you are free to delegate and undelegate to whoever and whenever at free will, the 1 week it takes to return your SP is 1 week where you will be not making any money from your SP. Due to this, market research is important to select the best return providing delegatee to minimise the cool down periods experience or in other words, 0 return periods. Market research is even more important the larger the SP you wish to delegate, as a 1 week period of 0 returns can equal a substantial amount of potential returns lost.
Some tips and tricks to calculating and comparing potential returns to indeed select the best returns for your delegations include the following:
Use Annual Percentage Return (APR) as the metric to compare returns.
Use the APR's from @minnowbooster (MB) as the gold standard - only consider delegating if the APR is above those given by MB.
To calculate APR from a bid-bot simply sum the daily rewards it has given out for a particular day, multiply this by 365 and divide the total by the amount of SP the bid-bot has. This will give you the APR, however to increase the reliability of this figure, calculate the average APR of the whole week.
APR=(Daily_Reward*365/Total_SP)
APR calculation example using @cabbage-dealer's payouts for the 21/04/18:
Assumption: 1 sbd = 1 steem (To make calculations easier)
Daily_Reward = 1.527
Total_SP = 1916.713
Therefore,
APR = 0.2908
APR = 29.08%
Calculating APR is not hard, and doing so will help you discover the most rewarding opportunities.
Final words
This article was written to educate steemians to understand the rewards of delegating and how to effectively analyse a delegation opportunity in respect to returns. Moreover, @cabbage-dealer is a bid-bot that I run and wish for steemians to consider as a delegation opportunity after learning the fundamental knowledge to assess returns on different delegation opportunities.
You got a 70.42% upvote from @cabbage-dealer courtesy of @crassus!