Crypto Income – The Distinction
The Wonderful World Of Crypto Income
One of the most attractive aspects of Crypto is its broad scope regarding income generation. It can sometimes be a little challenging to decide where to focus your attention, as time only allows so much, and the opportunities seem inexhaustible. Even within a particular niche, there is once again, another decision-making process, and so critical selection becomes an imperative practice. Identifying, activating, and maintaining becomes the approach to adopt and maintain.
To identify and isolate the appropriate opportunities, one has to make a very important distinction between action-based and passive income opportunities. A lot of people spend copious amounts of hours on action-based income that has a terrible input/reward ratio. On the other hand, this is not an applicable dynamic when it comes to passive income models. Essentially, setting up the model is the only work required.
There are also passive income ideas that require a certain amount of input. However, it’s not comparable to a typical action-based model. This is why, depending on your schedule, it’s essential to have a healthy passive/active ratio. The relativity ratio needs to be viable and conducive regarding its income-generative capabilities. This is where many fall short and sell their time for pennies on the dollar.
You have to ensure that the time being given to action-based models is producing an acceptable rate of return. One can perhaps find further credibility by factoring in a percentage of the projected price appreciation that is likely to occur in 2024 and 2025. Keep it modest, in case your projections are not met by the market, and if they are, consider it a bonus. Always work around the bottom end of your projections.
It’s not that you are being pessimistic, but rather considering risk management. Structuring a business or opportunity around the best-case scenario is pretty foolish. Structuring should take place around the bottom end of the scale to ensure productivity and profitability during downturns and other unforeseen circumstances. It’s a key aspect to ensuring longevity, and essentially, profitability.
Structure Determines Outcome
It’s interesting to note that adjusting where you spend your time can boost income and profitability. It’s about finding a sweet spot that works for you. Passive models are generally dependent on capital allocation, but not necessarily. Essentially, what you are looking to accomplish is an increase in income, while simultaneously reducing your “working hours”. It’s a constant game of improvement.
Perhaps, you have found yourself becoming somewhat unmotivated. It could very well be that the amount of time you are assigning to active income models is not producing the results you would like. It may well be time to re-evaluate how you are spending your time. Many of the “free Crypto” models still require time and effort, and you need to begin ranking them regarding their viability.
Firstly, regarding profitability, and secondly, regarding time. It would help if you then structured a portfolio, and began working on increasing your Crypto income. When it comes to active models, cut or reduce exposure to the losers and increase time and attention to the winners. It’s much like trading. Add to winning positions, as opposed to losing positions. However, most degens can’t stop themselves from dollar-cost averaging into a falling knife.
Final Thoughts
These are simply my thoughts and opinions regarding maximizing your time and capital. It should not be considered investment advice, but rather thought provocation, which may in turn lead to personal investigation and research. There’s always room for improvement. That’s it for this one. Stay strong and see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.