Staking Crypto – Mission Millionaire!

If you have been reading my recent posts, you would have definitely noticed that I have become totally obsessed with the idea of Crypto staking. What I found really enticing about this staking concept is the possibility to earn passive income without having to constantly make trades.  

Let’s Start with some Context

Before I share my totally crazy plan with you I think it makes sense to provide some background context. I got interest in the crypto world during end of 2017 when I heard about the phenomenal bull run Bitcoin was having. I was very skeptical about crypto so did not invest anything at that point but started reading about the topic through articles and videos I found online. The videos by Andreas Antonopoulos were the biggest motivational factor for me and as I started understanding the concept of Bitcoin better I slowly started investing in Bitcoin. Early 2019 I finally decided to buy a Trezor and decided to buy $100 worth of BTC every month. If I saw a dip I would invest $150- $200. Mid 2019 I bought a Ledger as I finally decided to buy a bit of Ethereum and Trezor did not have a native wallet for ETH. At this point I started getting active on several crypto based platforms like Publish0x, Uptrennd, Steemit, Minds and Crowdholding. I found the highest traction on Publish0x as it was focusing mainly on crypto based articles whereas the other platforms were flooded with generic topics and it was nearly impossible to get attention there. I had a good start on Uptrennd but felt lost when they opened up to general topics.

As I was a Andreas fan, I have from the start been a Bitcoin maximalist and considered all altcoins as ….. Early 2020 I started thinking about what is my endgame planned for Bitcoin. If I am never going to sell it how will I ever get any benefits from it. What if I never see the day when BTC becomes the default currency worldwide. I was aware of several platforms where I could lend my BTC to earn some interest but I could never trust any platform to move my BTC out of my Trezor and Ledger. Moving to March 2020, due to the COVID19 situation I was locked up at home and had a lot of spare time. There was not much new to learn about BTC so I started reading more about stablecoins and found that DAI is a good hedging option to have in your portfolio to protect from sudden fluctuations. Then while reviewing the Atomic wallet I came across the concept of Staking crypto and my mind just exploded.

Why I think Staking Crypto is the Next BIG THING!

In my opinion the crypto world is swarming with people looking for the next coin which will do a 100X and make them rich instantly but the crypto price movements are impossible to predict even for seasoned traders and the manipulations by whales makes the situation even more tricky.

This is when I realized that I am able to invest in some quality crypto projects that offer staking rewards just for holding them long term this would be a great way to earn passive income.

How will 5% - 10% staking rewards make me a Millionaire?

I am well aware that most of the coins that offer staking rewards are in the range of 5% to 10% annual yield. We need to keep in mind that most projects are very new and have a lot of potential to grow and as they grow the staking rewards will grow as well. Take an example Tezos is worth about $2.6 now so to buy 1,000 coins I will need $2,600. This investment of $2,600 considering a 6% return will give me an extra earning of about $150. Yes, the $150 will not change my life but now if take into consideration that Tezos is quite capable of doing a 10X during the next bull run I will be getting $1,500 every year for an initial investment of $2,600.

If I am able to but Tezos a bit cheaper during the expected dip over the next couple of months that will make the calculation even sweeter. On top of it if I start reinvesting the coins I earn as rewards back into staking then I will have the power of Compound Interest on my side which is regarded as the 8th Wonder of the world by financial experts.  

Whats my Gameplan!

In the past I have thought of several amazing plans like writing a book, making a blog where I post everyday, starting a youtube channel where I post videos everyday but somehow none of these plans ever materialized. Biggest culprit was the lack of available time and little follow through on dedication from my side.

This time I strongly feel it will be different as staking does not need too much of time and it does not require regular time and effort to keep it going.

·        Investment- I plan to put in about $6,000 - $9,000 into the coins I have selected to stake. I already have about $3,000 set aside to invest and am planning to save and invest about $1,000 each month for the next 5-6 months.

·        Where will I stake- I have selected 9 coins after my research where I plan to put my money on. The most useful resources for this research were https://www.stakingrewards.com/ site which has a lot of details about what are the pros and cons of staking in the different projects and videos on youtube by CoinBureau which I feel does a really indepth analysis and is totally unbiased in his reviews.

·        What’s my Timeline- I plan to keep investing during the dips till end of 2020 (at least something good will happen in 2020). Over the next 2 years during 2021 and 2022 I will reinvest my rewards back into staking. If my plan works and I hit a million dollar mark by end of 2022, I will resign from my 9 to 6 job (yes, I already have the speech ready since last year)  

My 9 picks for Staking

You might find some of the choices strange and say I am crazy to select some of them and might find your favorite coin missing in the list and say I can never be rich without that special magical coin in my list. I would just say everyone has their plan, theor priorities their lives and their fates and I have decided to go with mine. I am aware of the risks involved and pretty sure not all 9 will do well but even if 5-6 of them perform nicely I will be better off than what I started with.

TIER 1

I have put Tezos, Cardano and Cosmos here as I plan to hold them for long time. Tezos and Cardano have low reward rates but I think they are the strongest projects out there and have the highest potential in long term.

TIER 2

I have put Ethereum, Sythetix and Algorand here. I know I will get flak for placing ETH in tier 2 and not tier 1 but my rationale is that ETH already is very hugh and will not grow as much as Cardano which I personally am more bullish on. Synthetix has the highest payout but is a more riskier project. Algorand is a personal favorite as this project is technically very sound as the team behind this is from MIT.

TIER 3

I have put Neo, Icon and Elrond here. I would have invested more in Neo but it’s payout rate is very low. Icon and Elrond look very promising and have good reward rates but as they are smaller projects they are much riskier.

I know most you will think my plan is totally crazy but still I would like to hear your views as this community is what inspired me to come up with such a whacky plan in the first place 😊

STAY SAFE! From Coronavirus and from Crypto Whales!

Cheers,

SamBTC

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