Starter Guide to Earning A Crypto Income
I'm full time crypto and draw an income, you can to!
My full time employment evaporated with the onset of the pandemic. While I will likely eventually return to a more traditional type of work I'm in a position to explore ways to earn an income from a technology that I'm passionate about.
How To Earn A Crypto Income
To draw an income means taking profits from your activities on a regular basis. That said, while I would love to hodl everything for the rest of time this is a different strategy that requires parting with some crypto on a regular basis.
In order to have income to draw from you'll want to diversify your revenue streams unless you have one or two really good sources that can provide enough income.
That said, by diversifying your revenue streams you lower your exposure to risk, the same way a well diversified portfolio works.
Developing a Variety of Revenue Streams
There are many number of ways to earn crypto currency and you'll want to find a mix that works for you. Here are the different activities that generate crypto income for me presently.
Day Trading
Day trading requires some initial startup capital and a whole lot of discipline.
Day trading involves making short time frame trades through out the day hopefully resulting in profits. Anyone with some crypto, a computer, and internet connection can day trade.
To get started with day trading I suggest you research the common trading strategies that have stood the test of time.
It will be important especially in the beginning to pick a strategy and learn it inside and out, learn to get a feel for the markets, and stick to your strat at all times and learn from your mistakes. You will make mistakes starting out, and if you don't learn from them you will get wiped out.
Personally I mainly use the 5 minute momo strategy adapted from forex trading. It relays on simple EMA's and the MACD to identify shifts in momentum and entering position to earn from continuation of momentum. In the month of February I increased the value of my trading account by 52% using this strategy.
Swing Trading
In addition to day trading on the 1 & 5 minute charts I swing trade larger movements over the course of a few days or even the week.
There are larger trends that can be traded to gain profits. It's a little less intense than day trading because it happens over a longer span of time but can be very profitable if done right.
Again this requires patients and understanding the markets but still comes with risks as does all trading.
Blogging
Content creation can be fun and rewarding if done right. I'm by no means gods gift to content platforms but I make it work by keeping a few things in mind.
I don't want to create content that doesn't add value to an audience.
It's only worth something if it provides value to someone else. That said value comes in different shapes in sizes. Content can inform, it can entertain, it can be inspiring or insightful. I think all of these things can be valuable to other people.
Being consistent despite the price of a token is key. Price will go up and it will go down. There will be bull runs and crypto winters, keep creating through thick and thin. My 4 year anniversary is coming up in June, I've seen it all.
Engage with people around you! These are social platforms built to facilitate and incentivize two way communication. Consistently engaging is not always easy but I feel it's an important element of blogging platforms.
Create content on multiple platforms, or at least share content across a variety of platforms such as Hive, LeoFinance, Publish0x, ThreeSpeak and others.
Yield Farming
This is a passive income stream that requires some startup capital and some basic knowledge of DeFi.
I've recently added this income stream to my mix when I jumped into a PancakeBunny Liquidity Pool last month. I've now shifted my capital designated to yield farming over to CUB Finance because it's a trusted platform, there are good yields to earn and I'm supporting a project that I believe in and genuinely want to back.
Approximately 20% of my crypto income generating capital has been assigned to yield farming. That number could change depending on how successful it is or other investment opportunities.
Dividend Generating Funds
Three examples and possibly more can be found here within the HIVE network.
That is BRO, LBI, and UTOPIS token. These project and their tokens generate revenue in somewhat different fashions but they all pay dividends on a regular basis, from daily to monthly.
Typically getting into these project early gets the best results as the not only will you earn dividends but the value of the project token may also increase over time as well. While I can be overly critical at times with how these funds are administered I appreciate the opportunity they provide for people to earn, much respect to the hard working folks behind these projects!
If you're interested in learning more about these project just ask me below in the comments.
Blockchain Gaming
Ah yes, lets not forget about blockchain gaming. Every games mechanics and earning potential is different and I classify these as high risk.
That said I have earned revenue from Splinterlands, Rising Star, Crypto Brewmaster, Dcity, Rabona and others.
You can earn from blockchain games in a number of ways including earning tokens for playing, earning and collecting NFT's, and possibly investing early in a game through crowd funding activities.
Personally I do all three of these and have invested in a number of early stage games with varying results.
Running Nodes
Running nodes is a neat way to participate in maintaining a network, after all this is what decentralization is all about!
Typically running a node isn't profitable unless you can achieve a rank high enough in order to regularly sign blocks. It can also be technically challenging at times, depending on you skill sets. It can also get political, so there are a couple of pitfalls.
Airdrops
Sweet sweet airdrops! By being involved in new projects at the early stages such as platforms, protocols, and exchanges you may be the lucky recipient of an airdrop.
It's not as regular as I would like it to be but I think it's worth mentioning as the longer you engage with crypto and become involved in various projects the greater the chance that you're eligible for a drop along the way.
What you do with this is up to you. You can sell for a quick buck or if the project has good fundamentals you can hodl the coins hopefully for a larger return in the future. Choose wisely!
Offline activities
Who is to say you can do work offline and be paid in crypto. What are your skills and are people willing to pay in crypto?
Personally I've been paid in crypto for marketing activities like writing press releases, and have also been paid in crypto for personal training. I'm a kickboxing instructor with amateur fight experience and general experience in power lifting and athletic conditioning. I offer a discount for customers willing to pay in crypto. This works for me because I live in a high tech city of 3 million people and every once in a while I'm able to do a gig for crypto.
Pay Yourself
It shouldn't go without saying that in order to earn income from crypto you have to pay yourself on a regular basis. Something all entrepreneurs will understand.
For me that means tracking earnings closely and scheduling pay monthly. It's hard to part with crypto I know, and deep down I wish I could hodl it all but that won't pay the phone bill or put a new set of tires on the car, both things thankfully I've been able to do with crypto earnings.
Final Thoughts
Being full time crypto is honestly an incredible feeling but like anything that's valuable and worth while it requires hard work and dedication.
Like anyone that is self employed knows there's no boss sitting over your shoulder to push you forward, you need to be a self starter with a growth mindset. Be open minded to new opportunities, be dynamic, and be willing to work towards your goals everyday.
I suggest you spread yourself out into a number of different revenue generating activities, set your goals, and work each day towards those goals.
Acknowledgement
Thank you to everyone that supports my content here in LeoFinance, and HIVE. It hasn't gone unnoticed 👊
This post was also shared on Publish0x here.
Ciao for now,
Posted Using LeoFinance Beta
