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šŸ§˜ā€ā™‚ļøPassive Income Guide
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šŸ§˜ā€ā™‚ļøPassive Income Guide

How To Make Money While You Sleep

Market Meditations
Mar 12, 2021
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šŸ§˜ā€ā™‚ļøPassive Income Guide
www.marketmeditations.io

Dear Meditators

Absolutely delighted to share our passive income guide with you all today āœ…Ā 

šŸ’„ For 6 clear, concise and actionable newsletters a week, fundamental and technical analysis to compliment your trading/investing, trading education and self improvement, consider joining the free Market Meditations community šŸ‘‡

6 Free Letters A Week


Delighted to say this article is brought to you byĀ FTX. Make sure to use ourĀ linkĀ to get a 10% discount. Based in the U.S? Here’s a discount link for you:Ā FTX.US.


PASSIVE INCOME GUIDE

With the right knowledge, you can outperform every single traditional savings account in crypto and Build Wealth āœ…

However with so many options to choose from, finding that knowledge can be incredibly difficult šŸ˜”

Don’t worry, we’ve made it simple. We’re proud to bring you this Passive Income Guide šŸ“–

We will cover how to optimise your returns through:

  • Centralised Passive Income

  • Decentralized Passive Income

Most platforms offer you an interest bearing account that works very similarly to your bank’s savings account.

You trust these platforms to manage your money and in return they provide interest.

In the case of centralised platforms your trust is put in the company, in the case of decentralized platforms your trust is put in the code šŸ™


What Are the Risks

Every one of these platforms come with risk 🚫

You are putting trust into these companies and you can lose everything you put in.

This article is for educational purposes only, nothing we say is financial advice, crypto is an extremely high risk industry so do your own research. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission.

Here are a few of the risks we’re going to flag up.Ā 

  1. Most of these interest bearing accounts either self-custody or partner with another exchange that takes over custody, you won’t have your private keys šŸ”

  2. These platforms are not FDIC insured (although it’s worth noting that many have their own separate insurance funds) šŸ’°

  3. You will have to go through KYC processes šŸ”

  4. Decentralized protocols are all governed by computer code and therefore subject to human error āŒ

  5. One of the tradeoffs for this decentralization and independence is that the user interface for someone brand new to the space can take some time to get used to ā°Ā 


Platforms Koroush AK Personally Uses:

As you work through our list of platforms, it might interest you to know my preferred ones šŸ”„

My decision making process is simple. I like to minimise risk and maximise reward šŸ“ˆ

I do that by finding the specific optimal platforms for returns on the different assets I hold and then spreading my risk across different platforms šŸš€

That has resulted in the following mix:

  • Crypto.com to earn interest on my $BTC using their 3 month lock up and bonus rewards for holding CRO to earn 6.50% APY

  • FTX margin lending for a portion of my stablecoins to earn 0.88%-100.00% APY

  • NEXO to earn interest on a small portion of FIAT holdingsĀ 

  • Yearn.finance for passive income on altcoins

  • Badger.finance for passive wBTC income


Centralised Platforms

So now we’re going to a more detailed platform breakdown starting with a hidden gem I’ve been using recently to regularly get up to 0.88%-100.00% APY šŸ˜Ž

1ļøāƒ£ FTX is an industry leading cryptocurrency exchange that’s surprisingly good for generating passive income.

  • Earn: Stablecoins: 0.88%-100.00% and Crypto: 0.88%-12.00%

  • Pros: USD Stablecoin returns are fantastic (sometimes up to 100.00%)

  • Cons: Highly variable rates

Next we’ll look at some great platforms that require you to hold native tokens for optimal returns.

2ļøāƒ£ Crypto.com is an all in one beginner friendly mobile app that offers a lot of features.Ā 

  • Earn: Stablecoins: 8.00%-14.00% and Crypto: 2.00%-8.50%

  • Pros:
    -
    Bitcoin returns at 6.50% and stablecoin returns at 12.00% with a 3 month lock up and at least 5000 cro stakedĀ 
    - Generally competitive rates when combined with a 3 month lock up + staking of the native crypto.com token CRO

  • Cons:
    -
    3 month lock up means you are trapped if the market crashes or you need your money
    - You have to take on extra risk by holding CRO

3ļøāƒ£ Nexo is a crypto lending and borrowing platform that allows users to earn interest on stablecoins and crypto and collatorize these assets to take out loans.

  • Earn: Crypto (BTC, ETH, XRP): 4.00% - 8.00%, Stablecoins: 8.00% - 12.00% and Fiat (EUR, GBP) - 8.00% -12.00%

  • Pros:
    -
    Competitive cryptocurrency rates when holding NEXO token
    - NEXO allows you to earn interest on fiat holdings at the same interest rates as stablecoins. This is particularly useful for EUR and GBP holders given the lack of stablecoins pegged to these currencies
    - Interest is paid out daily
    - Nexo is ISO27001:2013 complaint which is the global standard for managing risks relating to security of information

  • Cons: To earn the best rates, you have to take on extra risk by holding NEXO


Decentralized Platforms

To use these you’ll need a metamask wallet. Metamask is a cryptocurrency wallet that gives you a simple but secure way to connect to blockchain based applications.

To install Metamask, simply go to Metamask.io, click ā€œdownload nowā€ and install on your browser of choice. It will be added as an extension to your browser. Then follow this sequence: Get Started, Create A New Wallet, Create Password, View Seed Phrase, Confirm.

Make sure to write down and save your seed phrase as this is the only way of logging into your wallet if you forget your password. If you’d like a more in-depth tutorial, check out this fantastic article written by Team GaryVee.

With Metamask, YOU are in control of your private keys.

6ļøāƒ£ Yearn.finance is a decentralized ecosystem that aggregates lending services

  • Earn: Highly variable rates

  • Pros: a great one stop shop for great yields on altcoins

  • Cons: The process can be intimidating at first

7ļøāƒ£ Badger.finance is a great aggregator for wBTC. (to turn your BTC to wBTC use coinlist)

  • Earn: Highly variable rates

  • Pros: People who want to try earning the most interest on their wBTC

  • Cons: The process can be intimidating at first


Free subscribers get full access to:

  • 6 clear, concise and actionable newsletters a week

  • Fundamental and technical analysis to compliment your trading/investing

  • Trading education and self improvement

Subscribe and Build Wealth


Stablecoin Yields As A Bull Market Edge


We mentioned back in April that crypto markets are extremely volatile. What we suggested then is still relevant now: stablecoin yields provide a profitable way of reducing your risk to crypto assets.

Understand that your split between crypto and stablecoins willĀ determine your risk.Ā Keeping a higher amount of crypto means your net worth is subject to high volatility. If the bear market comes, you will lose a lot, but if the bull market continues you will make a lot.

šŸ’„ Increasing your stablecoin holdings reduces your exposure to volatility and still ensures you are making serious returns šŸ’„

There’s two ways to go about increasing stablecoin holdings:

1ļøāƒ£Ā Set a clear target. If $200,000 of assets gives you freedom and changes your life, why wouldn’t you reduce volatility as you approach that level? That means, the closer you get to your target, the less crypto you hold and the more stablecoins you hold.

2ļøāƒ£Ā Reduce your crypto exposure every month.Ā The bull market has an end date and every day we get closer to it. Instead of using a set target, we assume that every month the probability of the bull market ending increases. It makes sense to somewhat increase stablecoin exposure and reduce crypto exposure naturally over time.


šŸ’Ž Did you enjoy today’s newsletter? ThisĀ surveyĀ is your chance to tell us how we can improve the product for you. LinkĀ here.


Not financial or tax advice.Ā The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimersĀ here.Ā 

Disclosure.Ā Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosuresĀ here.



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Davida
Apr 6, 2021Liked by Market Meditations, Koroush AK

These are raw facts for beginners like me. Thanks a bunch

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Angel L
May 26, 2021Liked by Market Meditations

Thanks for the great content as always.

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