Passive income in crypto

Investing and Tokens
#1

Passive income is the income that requires no effort to earn or maintain. It is called

progressive passive income when the earner expends little effort to grow the income.

Examples of passive income include but not limited to rental income and any business activities in which the earner doesn’t materially participate(culled from wikipedia).

So what’s passive income in cryptocurrencies? This is the income you made by staking the crypto you bought within the blockchain of that particular coin/token ecosystem for a stipulated amount of time in order to make profit or multiply the number/units of your originally bought crypto. And this leads us to the term “STAKING”.

Staking refers to locking up a digital asset for a stipulated period of time to act as a validator in a decentralised crypto network to ensure the integrity, security and continuity of the network. As an incentive for helping to secure the network, stakers(validators) are rewarded with newly minted coin/token which serves as a passive income for the stakers.

FACTORS TO CONSIDER WHEN STAKING

  • Current APY(Annual Percentage Yield): This is a normalised representation of an interest rate, based on a compounding period of one year. Some crypto offers 15% APY whilst some offers 20% APY, do your research and go with the one you are most pleased with its fundamental analysis.

  • End of staking: This means the end of a staking program(mostly a year).

  • Minimum amount per stake: This is the minimum amount of a crypto coin that can be staked at a time, for some coins, it could be 2,000 units(take NWC token as an example) whilst some other crypto coins could be 10,000 units(take VRA coin as an example).

  • Maximum amount per stake/user: This is the maximum amount of a crypto coin that can be staked at a time, for VRA coin, it is 200,000,000VRA whilst others might be 100,000.

  • Staking reward period: This is the period where you will be able to receive your passive income payout directly to your crypto wallet account. For some it is 24hrs whilst for some it is at the end of the staking period.

  • Unstaking: This is the period when your staking expires and it differs on every staking platform.
    There are many other terms that are associated with Staking and I believe you’ll learn them all along the line as you continue to develop your crypto journey at you personal pace and trust me you’ll love the journey.
    Another advice I want to dish out for all this ebook readers is to make sure they belong to a crypto community where ideas are shared and constructive criticism are been practiced on a daily basis as this would increase your crypto knowledge and widen your reasoning horizon.

And while we are still at it, I’d like my readers to check out the intercoin

Token ITR as they offers the staking opportunities for the community as well, though the stipulated amount to be staked hasn’t been released by the team yet but they offer most things that other tokens didn’t offer to their community when it comes to staking.

Intercoin offers their users to get their staking reward in BNB(Binance coin) or even is USDT tether as well, left to me I’d consider getting onboard at intercoin so id be able to stake and get the juicy rewards as well. What intercoin is doing in the crypto space would become a major milestones once everyone get a grasp of it, they are putting the communities and the people in it first, giving power back to the people and empowering them.

Owners of ITR tokens can send them to one of the Dividend Pools corresponding to the staking duration. This can be done via our site or any wallet. In return, they get shares in their wallet, which can be redeemed back for ITR at the end of the stake, by simply sending shares back to the Dividend Pool. Anyone viewing holders of ITR tokens can easily see how many tokens have been staked and for how long.

Holding crypto and waiting for moon(increase in price) is ok, but your money isn’t working for you 99% of the time. ITR tokens and some others staking enabled tokens solves this problem and you are still moving forward even in red days or in a bear market.

There are other sources of passive income in crypto as well which are Node operations, Yield Farming, Lending which would be discussed in separate articles in the coming days or weeks…and last but not the least and which is the most important point in the article is that, it’s not the course or content that you buy or read that makes you money, it’s the action you take after reading the content that makes you money and as from today, I want you to start thinking on how to make your money works for you in the crypto space.

…be intercoined, be sound…

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#2

Absolutely brilliant article @Dipo_adedotun and I really like your examples but most importantly your “Call to action”
As no matter how much we learn and know about investments until we start thinking about how to make our money work in the crypto space, nothing would change for us.

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#3

I’m really happy you are able to spot the CTA and I hope every reader in this community could be able to spot it and act on it, gone are those days where you can only make money in crypto by just Holding the token, now passive income is the best alternate to just holding and waiting.

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#4

I see passive income as a way to financial freedom and its a really great feeling when you put your money to work and receive an income from it.

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#5

Two things:

  1. Moving your coins from your own, secure hardware wallet to some network for staking involves an increased risk of losing your coins from hacking?

  2. How does the act of storing your coins somewhere on the network for staking help secure the network?

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#6

Great questions @philip_rhoades as security is the most important topic in all manipulations with cryptocurrencies and I’m sure that anyone would be at ease after @Greg_Magarshak will answer it.

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#7

Yeah, you’ve said it all brother.

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#8

The act of staking allows users to participate in securing the network by locking up tokens. And I’m sorry for the late response, our time difference sucks and I’d have to stay up most of the time to catch up with you guys.

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#9

Oh … come on @Dipo_adedotun always remember that you are not alone and the time difference is a blessing for a truly international business!
Intercoin already has partners in 5 different time zones and it’s only the beginning.

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#10

Yeah, and I’m truly happy to be a part of this lovely project and the community.

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#11

Yes the risk is higher, because when you’re interacting with smartcontracts, there’s always a risk that the contract could be designed badly, whereas if you never move your coins from your hardware wallet, then you never run this risk! But, on the flip side, participating in staking can give rewards that you otherwise wouldn’t have

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#12

Part of this risk is mitigated with audits though, and you can also apply some safety precautions by testing with small amounts of coins first

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#13

Enough said on this and I’d like to add that a token that offers staking are likely to be around for a very long time or forever as well because locking up tokens makes the token ecosystem stable.

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Exchange-Traded Fund (ETF)
#14

That’s good of course but I still don’t really see why that should be the case . .

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#15

Pls explain further why you still haven’t see that to be the case, I really wanna know where you are heading. Thx

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#16

Well, it might be my naive view, but say we compare the network to a real-world economy - having money locked up everywhere doesn’t make the economy strong . . a strong economy would have have vigorous trade happening and that would mean lots of transactions and movement of cash . . ie it would be more stable . .

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#17

Well to my understanding, crypto doesn’t work that way,the more people are selling,the lesser the price of the token becomes, but if coins are locked away through staking or people just decided to hold which in turn create an increase in demand, I’m sure you know what happens to price when there’s increase in demand Phil…that’s literally how staking helps secures the token ecosystem.

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#18

Sure - that makes sense - but only if there is some amount of demand for the coin - if no-one knows about it and no-one is trading in it then no amount of staking and reducing supply is going to make any difference . .

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#19

Yes and that’s where marketing and promotion on social media comes in…and yeah this also states why fundamental analysis should be performed throughly before investing; get to know the team behind the project and what their roadmap says.

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#20

Yes, I agree with you . Great job @Dipo_adedotun . THis article was useful and I learned new things from it.
We keep hearing more and more success stories but yet we lack implementation in full scale. Looking forward to seeing what the next 5 years will bring in crypto and blockchain space.

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