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I've been trading crypto for a couple of weeks now and I'm very proud to say that I haven't lost on any trades. Yet. It's a bit like a game, well that's what I'm reminded of anyway, I get the same rush of Adrenalin I do when confronted by a boss or skilled player in any game that I play. It's fun but also a lot of work. Especially if you want to make a living doing it.
My goal for the next 10 years though is to not have to work, I want to either be outright rich enough to not need an income or have the right investments to provide me with what I need, which is to eat, have shelter and be sufficiently entertained. Now if you're like me and don't have a great deal of capitol to begin with the options away from crypto are fairly limited and far less fun. Covering any of them is way beyond the scope of this article so I won't be going there.
There are many ways to generate income in the crypto space, very few are strictly passive though and mostly revolve around holding (I refuse to use the term hodl, it's stupid and I hate it!) a coin for a later profit. I absolutely do this but the income won't be realised until the holdings are sold. You can of course sell a portion every time their value increases but this relies far too heavily on the price of a particular coin increasing every single month, which is unlikely. We need reliability, or as close to it as we can get.
We then come to options like Mining, great if you have very access to very cheap power but unless you have a huge amount of capitol to invest in the first place, which we don't, it's less than ideal. Also hardware becomes obsolete very quickly, if you can't pay for the equipment and be in profit within a year then it's not going to use your investment money to it's full potential. If you have solar or some other means of gaining free power then that's a different story. For most of us though mining can only be useful in the following scenario:
You have a computer with a fairly decent graphics card, your machine is turned on a lot anyway, work, school, videos whatever. You run a miner in the background while the computer is turned on , you make a small profit. It certainly won't be an income that will support you and again this will only work if your power is very cheap or free.
You could buy or build yourself a trading bot of some kind, let it loose and hope for the best. While there are many people using these successfully they tend not to share them and they certainly aren't a one answer always works type of machine. They take time and skill to get right and are far from passive.
Then there's the ultimate passive income, make your own coin, even one that never rises above the absolute smallest of values can supply quite a nice income.
In my opinion there are only three real methods of gaining a passive income from crypto, even then none of them are truly passive, there will still be varying degrees of work to setup each one initially. You have to accept that unless you are very lucky or already have a sizeable chunk of money to invest there is going to be a fair amount of work before you don't have to work.
Over the next few articles I'll be exploring each method. Make sure you press follow if you want to ride along. Till then, if you want to be involved of course, you can do some preparation.
You will need two things to start, many of you may already have them, many of you may not.
Firstly yo will need a place to buy crypto, I recommend Coinbase as they are a large well known broker and their fees are low when compared to some of the other options.
Coinbase link:
https://www.coinbase.com/join/5c18ccffcddc0c134b39c17c
You will also need a trading account, I'm putting links to Binance and one called TOKOK, the second option actually pays interest and gives other “candy” to users, which will eventually be a part of our strategy.
TOKOK
https://www.tokok.com/indexcode/WW4GOZ7B
Binance
https://www.binance.com/?ref=35925543
That's it for now, next article will have us jumping in to the world of interest paying crypto accounts, their pros, cons and likelihood of making an income from them.
Have a great week all, if you found this useful please don't forget to tip and follow :)
