In this post I’m looking at things from a broad perspective and not looking to explain concepts or analyse the potential returns.
Like many people getting more interested in cryptocurrencies and digital assets, there is a lot more I don’t know than I know! I’m aware of some options out there and understand how many of them work, but I’m always learning about new opportunities in projects that I knew existed but had no idea what they did, and I have to learn more before I can cover anything in great depth.
A quick example of this would be ‘Celsius Network’ which has recently risen to some prominence amongst crypto income seekers. On their site they state:
Earn up to 10% annual interest on today’s top cryptocurrencies, from BTC to XRP. New coins are added to our wallet regularly – let us know what you’d like to see!
It’s possible to earn interest on a range of coins and tokens through their lending service by committing some of your holdings to their platform wallet.
This kind of lending interest share is replicated in traditional markets, typically through a peer-to-peer lending service such as Zopa, which we have in the UK and I’ve had some funds with them for nearly 10 years now. I think that as the digital asset sector starts to take-off the range of options will be huge and offer some really exciting opportunities that have not existed before.
This will bring access to new markets and increase the potential to diversify portfolios. You might have heard of efforts being made to bring micro-share ownership of Art masterpieces to the blockchain and this kind of tokenisation is a superb example of things to come.
The main options that are actually happening and proven right now for getting rewards for Hodling are roughly as follows:
- Staking
- Exchange Token Revenue Share Dividends
- Lending Services
- DeFi Liquidity Provision
- Ad Revenue Sharing
- Identity Data Monetisation
nb. I did not include mining on this list as whilst it’s an activity that earns crypto, it’s a technical activity that requires investment in machines/space/electricity etc and not a form of return on existing crypto/token assets.
I’m excited about these opportunities because they are offer real options in the digital asset world to complement traditional markets. At the time of writing this post there is certainly a lot of concern in those traditional markets around the pandemic, global debt and the potential for recession. Digital Assets are not immune from what is happening in the real world but they certainly seem to have some degree of separation in many instances and offer the potential for growth that many mature markets can only dream about.
And the more exciting part is that we are just at the beginning of this Digital Asset revolution and I think the next 5 years will be incredible. My casual interest in making some money from crypto speculations has really become a deeper interest in how this whole sector will evolve and while there was some doubt as to whether governments would bring the ban-hammer down on it all, developments such as Bakkt gaining approval to be a Bitcoin custodian and also launch their physically backed futures products along with Fidelity Digital Assets confirming their platform was ready for select clients to use has given me the confidence to commit myself to Digital Assets and start a journey of discovery and learning so that I can develop some expertise and start finding those investment opportunities I want to be involved in.
The content here on my site is just me sharing my opinion and thoughts on what I discover and should not be taken as financial advice. I’ll also be posting on Twitter and making use of YouTube so I can share with you what I learn and like the idea of doing livestream research so that we can help each other react to questions and ideas in real time.
I’m very excited and you can follow me on Twitter and subscribe to my channel on YouTube if you want to get involved. There should be links near the top and bottom of the page.
It’s hard to know where to start but I’m reminded of this from the book ‘Do The Work’.
“Don’t think. Act. We can always revise and revisit once we’ve acted. But we can accomplish nothing until we act.”
― Steven Pressfield, Do the Work