Building For Tomorrow
I have written a few articles about passive income and I am sure that most of my readers have picked up that I have a pretty strong bias towards staking projects, as my strongest objective is to create passive income well into the future. One of the most attractive aspects of passive income within the Crypto space is not only the high yields but also the appreciation of the assets value over time.
Receiving interest on a fiat investment in a bank is not really that great as the purchasing power is decreasing. At best an investor is merely running alongside inflation as apposed to overtaking it. Not only does Crypto not lose it's value over long periods of time but it actually grows in value.
This dynamic is what makes investing in Crypto so very powerful! As the asset value increases in time, so does the annual return of your investment, which if left to compound can create amazing wealth.
Strategy Of Redistribution & Reinvestment
I spread my risk by investing in multiple coins and multiple platforms over time. In this way my capital is spread over a very large network of operations, decreasing risk but at the same time increasing management. I view the extra effort as worthwhile and even imperative.
Profits from staking rewards, and other passive income is either reinvested or redistributed to other or new ventures. In this way I am not spending any earnings but I am compounding them for much larger future gains. I do look for the most trusted and solid projects to utilize but I also have a small percentage allocated to high risk, one could even say gambling in some cases. I obviously design my risk management with wisdom and only a very small portion is allocated to such endeavours.
Identifying Quality Long-Term Alts
If you want to be investing for the long-term then you need to be getting into quality staking alts that are going to be around for years and decades to come. For me, I look at projects such as ATOM, XTZ and BAND. Staking projects that I am fairly sure have good fundamentals, though nothing is for sure and nobody can foresee the future. I also make use of a lot of TRX dapps, as well as BTT due to the many staking opportunities currently available. The value of TRX is likely to see significant increase soon and Justin Sun will not let it fail. Like him or hate him, Sun is too committed to lose!
BTC needs to play a large role as well but the only option you really have is lending or exchanges that pay interest on BTC balances. The interest is not really that much and so disqualifies it as an option in my opinion. Currently, BlockFi is the lending platform I utilize the most as it has the best regulatory and custodial infrastructure. If I part with my Crypto I would rather make use of an industry leader as apposed to another company that may offer higher yields. Interest on BTC balances is currently 6% on BlockFi, which is pretty decent.
I look forward to working on my portfolio every single day as I scout out new opportunities and grow my existing ventures. All the best to those of you who are on a similar journey, enjoy the ride!