An Achievable Goal?
Many of us are absolutely captured by the idea of living off of passive income, and not just any form of passive income, but income generated via creativity within the Crypto space. This is to many their number one goal, and undergirds their activity and effort within this space. The idea that hard work now can eventually lead to a rather significant end is what motivates and drives many of us within the Crypto community.
For a relatively brief period of time, this was something that I was able to achieve during 2021. For a number of months, my monthly passive income was actually in excess of my monthly living expenses. This included every aspect of my monthly expenses. However, as many will know, this would have been short-lived due to the correction that followed. Ironically, this was even after my shift to stablecoins.
When BTC first hit $65K I moved a little over 40% of my portfolio into stablecoins. Some were earning yield, while other allocations were simply on the sidelines in self-custody. Essentially, this is an achievable goal, and one that I believe everyone should be working towards, even if it seems insignificant. Depending on the tools you are utilizing, these earnings will generally appreciate alongside the market.
So, when a bull market arrives, earnings increase… and often in multiples. Bear markets can sometimes hit your “working portfolio” quite hard, especially, if you are still forced to draw an income from it. However, this is not the case for the majority of you reading this article. That being said, it makes this idea even more attractive to you, as you can build without withdrawing.
Time & Compounding
Eventually, the market will reward you if you are persistent and committed to your goal. For the average person, this is one of the best ways to begin positioning yourself for your financial future. Fiat currencies around the world are collapsing against the dollar, despite the overexaggerated de-dollarization narrative. At the same time, the dollar is collapsing against purchasing power.
This will eventually be met by the Crypto market, as it enters a fresh bull market. What we will then experience is an enormous collapse of the dollar against BTC and Crypto, in general. This is how, over time, Crypto investors completely outperform traditional investor benchmarks. Those investing with the intention of creating passive income, are essentially leveraging themselves against the future.
Traditional investors and savers are actually doing the very opposite. I believe we are at the base of a new wave. We could see a temporary correction. However, it is likely to be short-lived. This is statistically a great time to begin building investments and passive income opportunities. Residual income is also a great avenue to explore. This generally requires minimal effort on the investor’s behalf.
Passive income on the other hand requires zero effort. Those generating monthly passive income from HBD and other DeFi opportunities can attest to this. It’s really a great time to be working on such endeavors. Whenever one looks back on a quiet and ranging market, it often reveals the perfect time to have been building and accumulating. With the help of some good altcoin moves, as well as some other strategic plays, this can become a reality.
Getting involved with blockchains that have income streams is another wise road to travel. After prolonged downtrends and ranging markets, investors often begin to believe that prices are never going to return. This is simply a psychological trick that the market unleashes, in order to enable a lengthy accumulation period for those who know better.
Final Thoughts
Hopefully, I will be able to regain the ability to secure a decent chunk of passive income post-2025. At the end of the day, it all boils down to hard work now, followed by smart moves near the peak. Applying yourself to these two ideas is at the heart of bringing this goal to a position of reality. Even if one misses the mark this time around, a continuation of these two simple approaches will eventually bring about the desired result.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.