Forever Building
Passive income ideas have always captured my attention and I am always looking to expand my passive income portfolio. With altcoin valuations still being so low, it remains quite a challenge. However, once the altcoin market finally heats up, so will the revenue of passive models, especially staking. Unlike a fiat-based model, staking operates on a coin valuation rather than a dollar valuation.
In short, as the value of the coins you are staking increases, so does the value of your rewards. This is relative and far superior to passive income generated in TradFi, regarding fiat-based investment accounts. Staking is often compared to an interest-bearing bank account. However, it is superior, especially in a bull market. Accumulate your coins early enough and then stake them indefinitely.
This is where the true power lies. Once you have held your coins (business) long enough the likelihood of the value dropping below your purchase price is minimal. This is where many are unrealistic and impatient. Any business requires at least three years to become established and truly profitable. Crypto may offer acceleration regarding returns and portfolio growth when compared with TradFi. However, time remains a crucial aspect regarding the building of a business.
It’s A Business
Building a staking portfolio is like building a business. Capital is invested to generate an income. Business owners invest capital with a similar motivation. Essentially, a healthy business can be compared to a Proof-of-Stake protocol with healthy on-chain activity and staking rewards. It takes time to reduce the risk of your investment. Early acquisition is always encouraged regarding Proof-of-Stake protocols.
The beauty of a DeFi “business” is that it can translate with little to no effort. When operating traditional businesses, owners must find a buyer before changing business models. A DeFi investor can cease operations immediately in the event of a sudden bear market and shift that capital into a stablecoin investment such as HBD or other attractive opportunities. It’s a frictionless world.
This is Crypto in terms of finances, tokenization, and WEB3-based models. This is a world where friction is reduced along with barriers of entry. As mentioned in “Passive Income – The 33/30 Strategy”, just get started! Begin with what is at your fingertips. Many are utilizing SocialFi as an ideal starting point. It’s a zero-cost opportunity most of the time and can generate income for staking endeavors.
In most instances, these opportunities are simultaneously staking opportunities creating a perfect synergy. Continuation and dedication to this idea over time can pay off long-term. The mitigation of significant risk is also a great selling point. It’s a wonder SocialFi hasn’t grown more significantly over the years. However, change takes time and people are indifferent to change.
Final Thoughts
Yes, staking requires investment capital, but as I mentioned there are ways around this barrier. Furthermore, it’s a model that favors participants in a full-blown bull market. Assets can also be translated into a stablecoin “staking” model with almost zero friction. With altcoin prices in the red, it’s an idea I find incredibly attractive. Anyway, all the best, keep building and I will catch you next time!
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.
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