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…