What Is Your Favorite Source Of Passive Income From Crypto?
When you first got to know about cryptocurrency, did you think about passive income from crypto? Maybe not. People can do transactions in crypto without having any middlemen. In the traditional financial system, you go through a third party for making different transactions. Crypto is permissionless, it eliminates the middlemen.
When you think about making money on crypto, you can do a lot of things. You can invest in crypto, hold for a long time, and sell later when the price goes up. You can make passive income on crypto. It takes time to build passive income that will support you.
If you don't get started, it will not happen. You can stake crypto to generate passive income. You invest in DeFi, provide liquidity and get a good return. You can have an impermanent loss when you provide liquidity. The token you get APY, the price of the token can fall drastically.
So you are getting APY, but due to the low price of the token, you end up losing money instead of earning money. DeFi can be hacked or you can be a victim of rug pull. Definitely, there are risks when you make your move to make money on crypto.
You can get passive income by lending your crypto. I personally don't like it. Many people lost their crypto on lending platforms like Celsius, Voyager, and BlockFi. You are transferring your crypto to the lending platform in order to generate passive income. Ask yourself whether it is worth it when you have a risk of losing your crypto.
You can make passive income from stablecoins. HBD is HIVE-backed Dollar. You can convert HBD into $1 dollar worth of HIVE. What I like most is when you hold HBD and earn passive income, you hold the private key. You don't need to transfer it to any third party. All you need to do is to transfer it to HBD savings in your Hive wallet.
If you want to withdraw from HBD savings, it takes only three days. It is pretty fast, and that's one of the advantages. You will get a 20% APR which you may not find anywhere. Well, APR can be changed if the witness supports it. You will keep getting interest every month which is compounded monthly.
When you decide to make any financial decision, you should consider your risk tolerance level. Don't just focus on one side, consider the risk and return. HBD can be one of your favorite passive income sources on crypto.
I'm sharing my opinion, don't consider it as financial advice. You are responsible for your financial decisions.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Posted Using LeoFinance Beta
I think anything that is passive is good. So HBD savings, rental bots in Splinterlands and etc. It saves me the effort of checking things and time as I only have to collect the rewards as they come in.
Posted Using LeoFinance Beta
Crypto makes it easier to have passive income. It's good to go with passive income on crypto as long as I hold the key. SBD savings is doing pretty well so far.
Posted Using LeoFinance Beta
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