I have relatively small portfolio of crypto compared to many other serious crypto investors. In spite of portfolio being small, I tried putting some portion of my coins/tokens to those which generate passive income while hodling others mainly for price appreciation or short term trades depends. Today I want to share three coins/tokens that I am holding for passive income. Please be informed that I am not a financial advisor and this is not a financial advice.
1. HIVE
Hive is a blockchain mainly designed to pay for posting and curating the blog type of post. However, with enthusiastic community, it has expanded to many different utilities. It has it's own DEX where you can exchange different currencies, NFT marketplaces, Metaverse and more. One of the way that I earn passive income here is by 'delegating' my Hivepower to other people/services then I get paid rewards in return in a form of sub-token which can be converted to Hive. Specifically, I 'delegate' my Hivepower to 'leo.voter' account get daily rewards of Hive-based-token 'LEO'. If I calculate value of HIVE and LEO based on USD and annualize it, it seems I am getting around 12~15% projected return(not considering token price appreciate/depreciation). This return rate is not fixed or guaranteed since pay out is made daily basis and the return fluctuates every day.
2. STEEM
Like Hive, Steem is also the blockchain built mainly around the blogging. Steem is similar to Hive since Hive was a fork of Steem. In case of Steem I use service called 'Tipu' and projected annualized return is around 30%. Again this return rate is not fixed or guaranteed since pay out is made daily basis and the return fluctuates every day.
3. PANCAKESWAP
Pancakeswap is on BSC chain and it's like BSC version of Uniswap offering not only farming based on pairs of tokens but also pool rewards. I like autimatic CAKE pool where APY at the time of writing this is around 68%. It has dropped compared to the past but I think it is still very high. However, considering fluctuation of the token price, net gain would vary, may be lower. In my case, token price has dropped about 30% since I initiated the position. I don't know if APY can actually go up later but I guess not. There may be other pool or farming on BSC but considering long history and marketcap I prefer using this other than other pools.
Value of cryptos fluctuates very much so APY alone can't be a decision factor. When someone invest in crypto it has to be holistically reviewed and researched before going into this space. In the end, even if APY is high if token/coin prices drop more than the passive income total return can be negative! There are many other cryptos that offer staking/delegation rewards such as Avalanche, Tron, and others.
