Hi everyone, So you bought your first cryptos, and are
wondering what you should do next. Well, what if I told you that your cryptocurrencies could
make you money while you are sleeping. Passive income can get you closer to your financial
goals and today, Im going to explain to you WHY and HOW you could be using cryptocurrencies
to make passive income. Hello welcome to the channel, my name is jerome
I do videos about cryptocurrencies trying to bring you my analysis of the crypto market.
I work as a portfolio manager for a french hedge fund and we invest in disruptive innovations like
like autonomous driving, genome sequencing, Streaming services and AI. Alright so, If you think about, wealthy people
are the ones that smart with their money, instead of using it to buy clothes, cars or
depreciating assets, they are using their money to make more money for them. Wether
they are investing in bonds for their coupons, stocks for their dividends, or real estate
for rental income, the idea is always the same : own assets and let money work for you. In the cryptocurrency space, we are seeing
different forms of possible passive income.
So we are going to see in part 1, Why you
should consider passive income with cryptocurrencies And in a second part, we will see how you
can actually do that. So stay until the end, so that you don't miss any piece of information
and also my french quote of the day. Alright, so part number 1 :
So why should you consider passive income with cryptocurrencies.
There are 3 main reasons: 1. Your Bank right now, is paying close to
0 percent interest rate on your deposit and if you think about it your dollars, euros
or whatever money you are holding, is loosing value, because the Fed keeps on printing money
every single day. They are adding more cash into the economy, and because of that the
money that you own , becomes less and less valuable. Everytime a new bill is being printed,
YOU ARE ON THE LOSING SIDE. So reason number 1 you should consider passive income with
crypto is that your traditional money is loosing value of time. 2. Reasons number 2 is that : with cryptocurrencies,
you can get paid to sleep. Im personally conviced that bitcoin will rise to 6 figures over the
next 3 to five years while smaller coins like cardano will do very very well.
If I can use
my money to generate interest for me while we get there, it allows me to increase my
exposure during that time By just depositing your coin, you have the ability to accumulate more wealth. So its very easy and everyone should be able to do it.
I've made another video recently highlighting 8 reasons why you should accumulate bitcoin
before 2021, so check it out if you haven't already. 3. Compound Interest: when you put your cryptocurrencies
to work you can earn between 4 to 10% per year depending on the instrument, It doesn’t really sound like much, but remember the SP500 has
been returning 7 percent per year on average over the past 100 years. Over time you interests
start generating interests, and the interests of the interests will be producing more interest. Eventually what's going to happen is that you won't have to work again The goal here, is really to familiarize yourself
with the idea passive income. How many of you ever told themselves, "that's
fine, im going to make money in two years, I'll invest later on."
The reality is that the sooner you start, the better.
A few years can make big difference.
If you started investing in your 20s versus your 30s, the difference in savings and compounds
interest is huge over the long run. So this part was 1, lets jump into part 2
: HOW YOU can make passive income in the cryptocurrency space ? 1. The first one is Deposit interests :
Deposit interest is probably the simplest to understand, because its similar to what
you have with your bank, with the different than instead of depositing fiat money, you
will be depositing Cryptocurrency into a wallet. The platform will usually give you returns
in the same currency that you have deposited, but some platforms also can give you the ability
to receive their own tokens as reward.
My two favorite platforms are Celsius and
Crypto.com, I find the user experience to be quite easy and very friendly Another smart move you can make is, Instead of holding normal us dollars in your bank , you could actually buy USDT which is the digital version 2. The second way to generate passive income
is by staking your coins into the network. Essentially what it means is that instead
of depositing your coins to a third party, here instead, you will use your coin to to
participate in the network that's verifying the blockchain transactions.
In return for your participation, the network will create coins that will be distributed
to all the people that have staked, and this is usually more safe, because you are keeping
the private keys of your coins.
The returns you can get vary depending on
the blockchains, but just to give you a few examples Cardano, which is one of my favourite platform
can give you 5.5 percent return every year. It has one the best staking experience, you
dont have to lock your coins at all, you can still spend them when staked.
Ethereum is planning to give out 6% over the long run.
And other smaller coins like TRON, COSMOS, Synthetix, can give you closer to 10%. Beware of coins that are giving out like 15
or 25 percent per year; because they usually carry more risks. Most of those protocols
are trying to attract you using very juicy rewards because they know poeple in the space
are greedy, but the main reason is that they have no other way to attract your funds.
What should attract you to a blockchain in the first place are things such values, the
problems they are trying to solve, the community and the vision. 3. The last way to make passive income is
DeFi using what we call Yield Farming : DeFi stands for Decentralized finance this
one is little bit more technical, but essentially its used to help decentralized exchanges to
People that own coins can add them to a pool
to provide liquidity for people to buy and sell. Its like adding inventory to a stock
of asset, and in return the manager of the stock is giving you back money in the form
of fees Popular platforms include UNISWAP, SUSHISWAP,
CURVE, COMPOUND FINANCE, but be very very cautious if you are considering investing
doing Yield Farming. There are things such as impermanent losses that are involved, so
make sure you understand everything before you jump in. This alternative is good if you have technical
knowledge of the cryptocurrency space otherwise I wouldn’t really recommend
doing it. Myself im not doing it yet, Im waiting to
learn more and for smarts contracts to come into Cardano before I jump in, because im
sure the design will be 100 times better than what we have now.
But if you do, you can actually make great returns with DeFi, there are people making
20 30 percent per year, but there are a lot of risks associated with it : The protocol
can fail, the smart contracts can be hacked, and hackers have proven that they could steal
tens of millions worth of coins by finding security breaches..
I'm sure some of you may have already been
scamed, and if you have very little money to your name in the crypto space, please be
extra cautious. Just to give you a few examples : we have
this person who lost 1 million dollar on Coumpounder dot finance platform,
Or this plaform called Harvest Finance that lost over $24Million dollars with a very sophisticated
smart contracts. So the french quote of the day is : " Il n'y
a qu'une facon d'apprendre, cest par laction." Which litteraly translate into "There is only
one way to learn, is by acting and taking action". So continue to challenge yourself, learning
something new every day, become smarter, stronger and share your discoveries around you, you
will find great enjoyment out of that. if you did enjoy the video please leave a
like and subscribe.
I have amazing content coming up on Bitcoin and other altcoins so
make sure you hit that subscribe button! Let me know what type of staking platforms
you use and what type of returns you are getting in the comments down below. Thank you so much
for watching And until next time , bbye,.