I am one of the biggest fans of making a passive income that you will ever come across; especially a passive cryptocurrency income. The idea of being able to make extra money easily is extremely appealing. It is one of my main drivers in achieving my ultimate goal; retiring as soon as possible and living off of my assets or passive income. In fact, I will usually do almost anything to gain an extra income to become even just 1 one more step closer to achieving my goal; be it lending out my crypto, providing liquidity, giving out referral links, taking crypto quizzes and so on.
But, as much as I love making this extra income; there are some things that I AVOID and will never do.
Also please note, some of these methods may Each of these things that I avoid, I do so for a variety of reasons. Perhaps I feel it is too risky, or I don't have confidence in the long-term viability of that option. Or maybe I feel my time is more valuable that the potential rewards I could receive from it.
So here are the crypto income sources that I will never do.
1) Cryptocurrency Faucets
When I first joined the cryptocurrency market I was very excited to find any opportunity where I could earn some free coins. Naturally I quickly learned about crypto faucets. While using a faucet isn't really "passive," I still wanted to include it on this list. In the past there was a bitcoin faucet where it gave out quite generous rewards, but that was at a time when bitcoin's value was almost nothing. But if you did hold on to those rewards you would be very wealthy today. But faucets no longer present the same opportunities as they used to. I had tried using faucets daily for over a month, and at the end of that time my rewards were a dollar worth of cryptocurrency at most. I realized my time was much more valuable than the total timing I was devoting to these faucets. You should think of it as a job. How much money are you making hourly at your work? You should also strive to make the same amount hourly or more in your other ventures as well. I realized if I just picked up a few extra hours at my job a month, or if I sold a random thing from my house I would be netting much more income than these faucets were providing, and it also would require less time to do so. I valued my time much more than the little rewards that were received.
2) Extremely High Staking Interest Rates
I'm a big fan of lending or staking crypto to earn an extra income, but I like to do so with "blue-chip" cryptocurrencies and also with viable long-term rates. I will never purchase a coin I don't believe in long-term just to earn a high-interest rate. I have seen interest rates equalizing more than 100% of a variety of coins, but I had no long-term faith in that coin. What good is a 100% interest in a coin that has no long-term value? I would much rather lend out bitcoin, or ethereum. Coins that I think have a tremendous future and the coins value alone will increase many folds. Then taking into account a pretty decent interest rate earned, and you have yourself a very nice passive income.
This also means I never, ever invest in wallet coins, or even coins of lending providers. I have seen the Atomic Wallet coin offering a very high-interest rate of over 20%, and also the Celsius coin risen exponentially the last few months. But at the same time I personally just am not a fan of those options and choose not to invest my hard-earned income in those avenues.
3) DeFi Yield Farming
I have seen many people who have made great fortunes in DeFi yield farming. But, yield farming does involve extremely high risk, and you absolutely shouldn't do it unless you know what you're doing. Like I said, I have seen many people make a lot of money performing this, but I have also seen it go the other way and they lost a lot of money. This option does require risk, skills, and time. All of which I'm not willing to do just for the possible great rewards. Also I do have a reservation that this market is incredibly young; having just began during the late summer of 2020. Perhaps as this market matures, and becomes a little safer; perhaps then I will feel more comfortable using my funds in this manner. But during the meantime I will avoid it.
Now I do realize that perhaps many of you do participate in the above options and that is totally okay. This is just a list of the options that I personally avoid.
The ways that I really enjoy earning extra crypto income are lending out crypto to the likes of BlockFi and Celsius (bitcoin), Staking coins that I believe in (ethereum), free crypto learning quizzes on Coinbase, blogging on various crypto websites, and more.
But which crypto income streams do you avoid doing? And also which ways do you enjoy making an extra cryptocurrency income?
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As always, thank you for reading!
Great and insightful piece.it was worth the read.