For many crypto has been the saving grace that has taken them from 30+ years of work to a short small investment that ballooned into a million dollars. But for those starting out today I wanted to entertain the fact that if you were starting brand new could you in fact make a living from crypto?
What would it take and how might you go about it?
In this case I want to start out with a simple small investment, base it on USA which would be roughly $100 a day needed to live a ok life lol (It's crazy to say that now with inflation so crazy anymore) and explore the options people might have.
It goes without saying this article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks.
Building From Little
Many people will most likely find themselves building from little. With the hope of building a lot and I have good news for you! This is a great way to get started as there's little risk and the only thing you're trading is your time.
With building from little you can use your knowledge, skills and writing abilities to earn some crypto. This mainly comes down to web3 social style platforms.
For example blogging is mainly dominated by Hive which is also supported by InLeo with a thread like twitter (X) function. By writing high quality articles and building connections with the community I've found this to be one of the best ways to earn a decent amount of crypto wealth.
There are also other social platforms. For example Torum which is a Facebook style social network does pretty good with earnings as well.
You also have other blog style platforms like Publish0x which mainly runs off of ads revenue and paid out to writers. It reminds me a bit of those old article marketing days in the early 2000's.
You also have faucet style sites but I'll be honest with you here many of these are extremely low paying, scams or just an overall waste of your time. However there are a few that have stood the test of time those being. FreeBitco.in RollerCoin and DutchyCrop
Building Phase
While the above will generate you a little extra income on the side it could be turned into a workhorse for you and this is where things really start to heat up and change.
As a note if you're worried about Impermanent Loss then working within stablecoin pairs will be your best bet in most cases for DeFi. However you can also use staking rewards as well.
One of the cool things about Hive is that you'll also be earning a algorithmic stable coin called HBD which should hold roughly $1 of USD value per HBD is the theory here. At the moment it is paying out a whopping 20% APR. Meaning if you have 1,000 HBD in savings you'll be earning 200+ HBD per year (because of monthly compounding)
There's many other tokens as well including stable coins which can be staked to generate passive revenue as well. This is where compounding comes into play and is often much higher in value compared to anything you would make in a Fiat savings account.
As for Hive again as an example your powered up Hive tokens earn around 2.9% APR simply by having them staked. But being that it's also a social network you'll earn roughly another 8% on top of the called curation rewards. Each day you have 10 100% power votes which you can divide up however you like percent wise across threads and articles. For doing so after 7 days you'll earn a curation reward for voting on others content. That means you should be seeing roughly 9% - 11% APR on your powered up hive.
Now as you can see these are not huge numbers at the moment. Being that most of these tokens are worth $0.30 or less. However if and it's a big if and risk with any crypto if it jumped to $1 or more you'd easily being earning yourself a full time income at that point. The question is how do these platforms get to that level?
For me I think it comes down to business and general generation of revenue. You need developers to build products people want to use. You also need ads and sponsorships which will be used to create a pool of funds that act as rewards to players of games, social media interaction etc.
Are you currently earning in crypto? If so what has been your biggest play and system that constantly produces well for you?