Why So Many Are Waking Up To The Brilliance Of Passive Crypto Income
I think for the most part, many speculators and traders within the Crypto space have been a tad bit bored of late, with the exception of the recent Bitcoin rally that pushed the BTC price just shy of 13K! The truth be known, as long as people are making money within the Crypto space, they are happy. This has almost always meant that prices have to rise in order for investors and traders to recognize gains. Sure, there are those who choose to short the market in order to profit from the violent drops we so often see in Crypto but most wish to see their gains as a consequence of price appreciation.
It is also not wise to be shorting a market that is entering into a bullish phase, compounded by the fact that the industry is young and growth is far more likely than shrinkage.
At the heart of the DeFi movement is the concept of being rewarded for the provision of liquidity. This is very much the case in farming and other DeFi orientated dapps, proving that there is money to be made by those who are holding significant funds and are willing to put them to work.
As with anything, there is always risk involved and he who waits for the perfect conditions never acts! People are taking risks, some are winning and some are losing, that is the reality behind every facet of life. Some succeed at work, while others fail. Some succeed on the sports field, while others fall short but what is important, is to make a planned and dedicated effort. Many are being enticed by the idea of passive earnings but you want to make sure that you are part of the winning team and not the casualties.
To simply throw money at the first opportunity that comes your way is most likely going to end badly. So what are the successful participants of this market doing to secure themselves in the front row?
Accumulation Followed By Managed Risk
Firstly, the opportunities within the world of Passive Crypto Income are available to the large and small player alike. However, if you are wanting to generate meaningful income you are going to have to accumulate funds over time through trading, saving or any other avenue that is accessible to you. Secondly, you are going to have to choose the projects and opportunities that you are comfortable utilizing for the medium to long-term.
As most people will know, with less risk comes lower returns and in view of this, you need to allocate a large percentage of your funds to the safest options. This works in your favor because now the majority of your funds are reasonably safe! This leaves you with considerably smaller positions in riskier opportunities, which is what you want because if things don't go your way your loss is small.
However, if things do go your way, your gains are pretty decent because with the higher risk tolerance comes the higher reward.
Diversification plays a very important role and if you are spreading your risk correctly then your chances of significant loss are greatly reduced. Don't be impulsive and plan your moves and entries as best as possible because a great entry can make all the difference!
These are my own opinions and should not be considered investment advice.