If you follow along on my other blog posts you'll know that I am not a huge crypto investor. Heck, I hardly UNDERSTAND crytp beyond surface level stuff. But, if you follow my blog posts, you'll also know that I am a dividend investor and love owning investment assets that generate passive income.
Guess what? I have finally stumbled across a crypto currency that is able to create passive income for me. And no, I am not talking about running some massive multi level marketing blockchain mining scheme. I am referring to Tezos (XTZ).
I stumbled upon this token through Coinbase and their "Earn" section. They offer a way to learn about new tokens and even allow you to be rewarded with a small chunk of said token just for being engaged and wanting to learn! Tezos was offered to me yesterday and after viewing all the informational videos and earning my own Tezos tokens, I wanted to see just what I could do with it.
Many tokens offer the option to "stake" tokens. This process from a software and technically side is a little complicated for me to understand, and let alone explain, so for purposes of this blog I'll explain it like earning interest/dividends. Simply put, you "stake" your tokens and they will begin to earn passive tokens for you. It's just like putting USD in a savings account and then beginning to earn interest.
So you're thinking "Ew! Interest? It's probably like .25% annually, huh?" Well, I thought that at first, too, but it's actually far more generous. Right now, I am earning 5.44% annually on the Tezos tokens I am holding over at Coinbase. That's a far greater yeild than most of my stock holdings offer me.
There are a few catches involved, but nothing that deterred me from holding onto my Tezos. First, you need to hold onto your Tezos for about 45 days until you see your first "interest payment" back into your Tezos pool. But from then on, the payments are made back to you every 3 to 5 days. This is huge because it really amplifies the compounding effect that we all love to see on passive income.
From an investment standpoint, I wouldn't personally dump a large amount of money into Tezos because the token value itself is still shifting a bit because it is in its infancy, but as I earn crypto online and send it to Coinbase, I will for sure be converting it to Tezos until I find the next best investment to match my investing style.
I'm going to see how this works long term and what type of returns I get and how reasonable it is to convert all my crypto into Tezos. Maybe even shift Bitcoin Cash to Tezos if I ever earn some!
Let me know what you think and if you share a similar thought process by leaving a comment below! Feel free to tip as well that way we can each begin to grow our passive income!
Hey! I know you from Publish0x too. lol It's good to see you here. :)
Yes, staking is a very easy way to get your crypto working for you. Another easy mainstream option is Binance... they have more tokens to stake, I believe, and their rates are pretty good. Your Tezos investment would be getting you between 6% and 7% right now.
No pressure... but if you use the referral link below, you'll get 5% of all the commissions you generate right back in your Binance wallet. So it's a win-win-win.
USE THIS LINK (anyone): https://www.binance.com/en/register?ref=XT56G6F1