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Work smarter, not Harder: How to Generate Passive Income with Crypto

When you take your hard-earned money to the market, your main goal is to grow your wealth so you can achieve financial independence. 

One way to do this is by diversifying your portfolio so that it includes different types of investments, such as real estate, equities, bonds, mutual funds, and exchange traded funds.

Regardless of which financial instruments you select, the key is to reach a point in your life where you can rely on your investments to bring in new income. Or in other words, to make money while you sleep. To accomplish this, you must create a portfolio that has your money work for you.

But establishing a robust and stable high-yield passive income isn’t easy, especially in volatile markets. With wide swings that happen in every asset class, you need to establish a new passive income that you can rely on. Before you can set up various passive income streams, it's important to know what passive income is.

Passive income is income that requires minimal work to earn and maintain. That could include renting out a room or a whole property that you own, to earning dividends from stocks.

Another passive income source comes from earning interest that sits in a bank (Inflation is devaluing it rapidly though). And most recently, crypto has created a whole new way of generating high-yield passive income. Essentially, any income that grows without much of your involvement is passive.

 

Why should you have multiple passive incomes?

Creating multiple income streams allows one to have various cash flow sources, ultimately allowing them to step away from their day job. By building many different passive income streams, you will be in a better position if one source of income fails.

There is only so much money a person can make in one day, so that is why it's vital to take the extra money you do have and invest it in ways to generate more money. 

You don’t want to work harder, you want to work smarter – to build a growing and sustainable income that grows around the clock, regardless of if you are at work or relaxing at the beach. 

Keep this in mind that the average American millionaire has seven different incomes.

 

The history of creating passive incomes

For many years, novice investors have been giving their money to experts to help them invest. 

Almost 100 years ago, the first mutual fund was launched in the U.S. in 1924. This allowed the average investor to take his disposable income and allow professionals to help him earn money.

This was revolutionary, as it created a new way for investors to earn high-yield passive income with virtually no need to get involved. Hedge funds, exchange traded funds also took this to a whole new level – allowing people all over the world to create passive income.

In the last few years, crypto wealth management and savings platforms have allowed millions of people, no matter how much money they have, to generate high returns in a safe, secure way with their cryptocurrencies. This is called staking or depositing your crypto for a certain period of time and earn passive interest in your digital assets. This industry is set to explode over the years, making many people all over the world wealthy. 

According to a report from JPMorgan analysts, staking currently generates an estimated $9 billion worth of revenue annually. But, they also predict that the complete rollout of Ethereum 2.0 will spur adoption of the alternative consensus mechanism. This could cause staking pay-outs to jump to $20 billion in the quarters following the ETH 2.0 launch. They believe by 2025, this could reach $40 billion. You don’t want to get left behind on this new massive wealth creation train. 

 

Earn from your crypto

Just like a certified deposit where you take your cash in your bank account and lock it up for a certain period of time, staking and depositing your crypto are virtually the same thing, but it pays significantly more - more on that below. 

You simply go to the crypto wealth management platform, use your cash, such as euros, British pounds or U.S. dollars, to buy your favorite crypto – whether it be Bitcoin, Ethereum or a stable coin, and then deposit it for a set period of time and earn interest. You can deposit it for a week, a month, or however long you like to generate passive interest on your crypto.

To earn passive income with equities and stocks, hedge funds require a big price tag to get in on their strategies. But crypto savings platforms are breaking down all entry barriers to having access to acquiring passive, high-yield income.

Unlike the S&P index which will only make you around 10% a year, and bank accounts only paying around 0.06%, it is worth looking into using a crypto currency platform, as some of them can pay up to 12% a year on your stable coins.  

 

How to select a crypto savings platform

Is this safe? Absolutely. It is safe, simple, and secure if you select a trusted crypto wealth management platform. Make sure that they are registered as a virtual currency exchange operator and a virtual currency exchange wallet operator.

And of course, ensure that the crypto savings platform benchmarks itself against leading global financial institutions by having policies and guidelines on KYC that are in line with what these institutions have.

Only invest with crypto savings platforms that rigorously test compliance solutions vendors to ensure that they only engage vendors that have proven track records and are at the forefront of regtech.

 

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