One of the most important things I learned a few years ago when I fast tracked myself to being not only self sufficient and also financial freedom was building assets. Assets can come in many shapes and forms.
For example being self sufficient means I depend on no one for power, food, water and shelter. I no longer have to deal with skyrocketing food prices especially meats and power doesn't rely on a power company to heat, cool and in general run things in the home. It took a long time to get to this point and yes it took expenses but I knew over my lifetime that those investments now would continue to pay for themselves time and time again. With record high inflation and food costs soaring I can safely say now it was a great decision to make. This is call asset building and also dividend building as these assets reproduce and in a way create a dividend in terms of food or extra that can be sold.
I used that example above to show also what I mean by building asset classes in crypto but in particular today I'm going to talk about the layer two token called LEO of LEOFinance.io and Hive which is the core asset of the hive block chain. Not only does it give you rewards and earnings on top of it but it also provides you resource credits which allow you to do things on the blockchain.
What I see far too much is people treating LEO and HIVE as digital ATMs and then wondering why they are not getting ahead or why people like me stop voting for their content. Even though you create amazing content I have the choice to vote up your content or not.
Things I personally look for are as follows
I fully understanding powering down some and cashing it out. It's why you're investing time, money and resources into the chain to be able to cash out and use it. However cashing all of it out is a great way to throw it out there that you care nothing about the platform and simply want to cash in. Thus you honestly are now a drain on the platform and you shouldn't expect much from others to be honest.
Building Assets in LEO and Hive over time allows you to later start cashing out. For myself those goals are 75,000 LEO and 100,000 HIVE before I start taking anything out of either one of those. In fact I also will be stacking HBD for the most part when prices pick up again as right now I'm simply pushing towards that 100k goal first with prices being down.
What's really powerful about both of these tokens is at some point you'd be earning enough through curation, staking and other rewards that you won't have to touch the core assets that you built.
For example Hive earns a little over 2.5% on your staked tokens. At 100,000 hive that means passivly I earn 2,500 hive a year or a little more with compounding or 208 per month. That means about $200 worth in earnings for simply sitting on it per month.
Throw in a little work through curation rewards and that should bump me to 8% curation plus let's say the 2% passivly that's now 10% a year or 10,000 Hive per year or 833.33 hive per month semi passivly.
Put in a little work on commenting you'd earn some extra bonus rewards there and write quality articles and you'd most likely see another bump.
Apply this to LEO token which currently pays out a rather high curation reward and soon a Ad revenue split to token holders which most likely will be 4%+ means passive that 75k LEO would make me about 3,000 LEO per year or 250 Leo per month and at current prices that's about $30-$50 a month passivly (Not yet available but coming soon)
This is what asset building is all about and if you don't have capital up front well then you're going to be trading it in through time and work. The beautiful thing is it compounds over time. I didn't get to where I am today overnight it's been years or work and I still have years of work in front of me. But it's not so back breaking as it once was and I can take time off and enjoy freedoms and life early in my 30's which I have to say many others in my age range simply don't have and live pay check to pay check.
I'm curious to hear others thoughts. Do you take into account if someone is cashing out everything into your voting?
