Do you even HODL?
When it comes to holding any kind of money, the idea is to try and hold onto it for as long as possible before you have to use it, right?
If you have become lucky enough to realize this and change your mind about how money operates. Then you'll quickly find that forcing yourself to hold onto your digital assets for awhile. Actually does pay off!
Majority of this world only does 2 things with their money but forget about the 3rd most important step.
1. Make Money
2. Hold onto it (stop spending!)
3. Gain Interest
Now I'm not about to sit here and talk about why this is so hard to remember. I myself just barely learned about this 3rd mystery step. Sad part is, it is not at all a mystery. In fact, many banks offer ways for you to gain passive income while keeping your money in their savings account.
The worst part about this is even though banks offer this now and have for years. Either people don't know about it, forgot about it, or get quickly discouraged. Banks typically offer up to 1.25% APY on your savings account. This means if your money sits there for exactly 1 year then you will be guaranteed to get a payout from your bank of up to 1.25% in your savings.
This is actually ridiculous that banks even offer this! They know that people will fall for it too because where else can you earn money for having your money sit and do nothing? It is highly discouraging and forgetful though because really how much of a difference is that going to make in people's lives?
Most people also can't hold onto their saving for that long to pay for bills and you know... life stuff! Let alone, be able to put enough extra money in it for anyone to see an actual difference.
For example!
If you went with your local bank and got 1.25% APY on a new savings account. Someone would need to deposit a lot more than just $1000 into their account. If you HODL'd $1000 with your bank, by the end of the year you are only going to get back $12.50 USD... On those numbers you would be making a monthly passive income of about $1. Then that one dollar you earned for the month doesn't even get deposited by your bank until you meet whatever thresholds they have set up.
Certainly not flexible, or beneficial to our pockets in any sort of way. You would likely be better off spending the money on something you could flip!
Let's say you are a big spender and you do save lots of money! Take the same example and instead of hodl'ing $1000 USD in a savings account with 1.25% APY. Big spender here adds another zero to the plate and saves $10,000 USD instead of just $1000. Big spender dude really isn't much smarter than someone who only has $1000 to spare. Big spender ends up with an extra $125.00 at the end of the year versus $12.50 like our previous person. So, big spender gets to live off of an extra $10-$11 USD every month? That would be reasonable if rent was only $5 a month but it is not that way.
What about the $1000 or $10,000 dollars these people left in their account? It still is the same amount of money that sat there and did nothing but wait for someone to pull it out.
Earn interest!
Earn interest the real way too!
It bums me out to think banks have been using many of us before we were even born. They really could be offering the same exact benefits we are seeing in the crypto space today. Yesterday! Ten years ago they could have done what we will finally be able to see this year. At least, without having to hide it...
Let's be real, there have been ways for people to earn interest on their money and lend. It's just that people have resorted to keeping it secretive, sometimes illegal, and far out of the way of the public. People in America still think that it is illegal to have an "off-shore" bank account!
Completely bogus stigmas against money and more importantly, passive income, have caused America's citizens to remain impoverished for as long as it has been. The gap in income is so insane that it almost feels like you really do need to hide something in order to close the gap for yourself.
I am not in any way suggesting someone resort to hiding and doing criminal things to get a passive income going. It is just that when you have learned what I have learned about economics, business, and money. The system we are apart of truly is set up for everyone to fail every chance they get.
It is sad but it is true!
The financial system we have been used to for decades is slowly being exposed for the crap that it does to people. The traditional ways of making a passive income will still always be there. Things like Real Estate, Vehicles, renewable energy, fossil fuels, and whatever else you want to name. However, they don't need to be filled with utter bullshit. The Real Estate industry is easily the largest source for your biggest chunk of passive income. That is great and all but one thing still stands. Still to this day the real estate industry is filled with corruption. Traditional rules, traditional people, and banks have all contributed to this.
Not trashing on the real estate business sector by any means. Real estate is something that literally has to be apart of our lives. But again, it doesn't need to be corrupt! You can do it the right way without screwing people or hiding.
The same now goes for Bitcoin!
Instead of keeping $1000 in a low-interest savings account. Instead, put that shit into a real bank account!
BlockFi offers up to 8%
Ref Link - https://blockfi.com/?ref=b2db60a1
Crypto.com offers up to 16%
Ref Link - https://crypto.com/r/2eweb7tamb - Mobile Only in US
Referral Code: 2eweb7tamb
Coinbase offers XTZ for 5.55% (likely more soon)
Ref Link - https://www.coinbase.com/join/balthr_y
Cointiply offers 5%
Ref Link - https://cointiply.com/r/PyyGE
Binance offers many up to 8% (likely more soon)
Ref Link - https://www.binance.com/en/register?ref=21707217
Nexo offers up to 8%
Ref Link - https://nexo.io/?u=5dd9996f5c2a56640b2effcb
I have tested all of these and they are amazing! They are in my opinion the best safe havens on the net right now.
If you know of any great places too, be sure to share your referral link in the comments!
Before I skip out of here for today, I wanted to break down a quick example of how much better these places are with your savings.
Let's take our old example of $1000 USD and instead of keeping it with a bank that gives you only 1.25%. Our example chooses one of the places above. Even if they went with Cointiply for something as low as 5%. They already would have more than tripled their original earnings of only 1.25%. We take 5% of $1000 and that's only $50 a year or roughly $4 extra a month. still low! Not much, yeah sure... but it beats the hell out of it only being $1 with a traditional bank. On top of that too, our example person just bought into a volatile market! Even better, they bought while bitcoin took a dip. This person then keeps that $1000 invested for exactly 1 month in order to get that extra $4 a month. Then our example can cash out their $1000 except that this $1000 either lowered because of the market or rose because of the market. On a good day you will cash out with more than $1000 and on a bad day you will cash out with less. Worst case, keep it in there another month or two and it will break even again.
No FOMO!
That was a simple example of course but it is using an amount of money that is realistically achievable. Now I don't recommend actually doing this but I tested these websites out above. I saw the best results with Crypto.com! What I did was risky but it made a lot of sense to do especially if you have a regular income coming from a regular job. My house payment is $1100 USD and some change which I have to pay no matter what by the first of every month. At the beginning of the month after I paid for my house payment of $1100. Instead of holding the next months payment of $1100 in an account that does nothing. I moved the $1100 over to my account with Crypto.com and started earning interest on it. Using their currency CRO I put all $1100 into this coin that would gain 14% interest per year. The earnings get paid out to me through my wallet every Monday too! I can use it right away if needed! By the end of the month, my $1100 rose to $1500 before I had to pay my next house payment. That is not including any of the earnings I got paid out for gaining interest. Which was only about $10 extra a month but considerably much higher than the $1 my banks were trying to give me.
Simply put, I was able to make money on my house payment rather than sit there and wait to have to lose it. An extra $410 really helped me out big time too! In fact, I used it to buy back into these accounts you see above. This way I gain interest on the gains that I made from paying my house payment. Getting paid to pay your house payment is something I can get used to really quickly!
Don't let your money sit around, keep moving your money people!
