Monday, September 23

Passive Income for Genius: Banks, Stocks or Cryptocurrency?

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cryptocurrency staking

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The world is providing dozens of passive income and investment source options, ranging from something tangible like gold bars or real estate to something intangible like stocks, and today, digital currency. People invest based on their return requirement and their tolerance towards risks. Each investment has its own pros and cons regarding that matter.

For instance, real estate is a high ROI investment and you may earn quite much passive income by renting it, however, it requires a big sum of initial investment which is not affordable to most people and it is certainly not liquid. Another might prefer gold bars, which has stable value hedged against inflation and value that is almost always increasing with much more liquidity compared to real estate but storing it in a safe place is also a challenge. Today we are going to talk about these passive income options specifically on financial products and tell you why you should probably get started on having a cryptocurrency portfolio for your own good. 

Safe Financial Oasis: Bank Savings and CD

Bank savings is a service for people to store their money safely. The benefits are that the money will be safe and people earn interest out of it. But what people do not realize is that they are losing their money in the bank. US average annual bank saving interest rate is 0.09% APY according to FDIC. You will earn some percentage of interest in that particular year. However, do not forget that the US inflation rate up to this date in 2019 has reached 1.6%. These numbers show you that you are actually losing money rather than earning it. 

Things might go better with CD (Certificate of Deposits), where you can earn more interest. A 60 month CD with the jumbo account of more than $100,000 can earn you an average of 1.15% APY (FDIC). It is quite a good number for people who have more money and do not need much liquidity. However, people always seek better options available, don’t they?

Bustling Financial City: Stock Investment

The financial market is a giant market. You can see numbers moving up and down non-stop in world biggest exchanges in New York, Tokyo, Hong Kong, and others. What makes stock trading and investment so interesting that powers the trading in these exchanges? 

Stock markets (measured based on S&P 500 index) has been rewarding an average of 10% annual return (including dividends) for its long term investors. With the deduction of around 2% purchasing power due to inflation, investors will end up with around 7-8% annual yield. Although this yield seems to be quite steady, however in some major financial crisis the market crashed and leave investors with a good amount of losses. The stock market offers a much higher return compared to bank savings or CD, but it is also exposed to higher risk due to the volatility of the market. 

Virtual Financial Space: Cryptocurrency Staking

The cryptocurrency industry has boomed in recent years as people believes that it will revolute the financial industry. It eliminates the need for a trusted third party and enables people to transact peer-to-peer. This industry, although new, has significantly grown in market capitalization, which has reached almost 300 billion USD in Q3 of 2019. The tremendous growth has led many people to start cryptocurrency investment. 

One way to create passive income in cryptocurrency is through mining. However, mining is energy-hungry and will cost a lot for the initial investment. Therefore, people now start generating passive income through staking that use Proof-of-Stake as underlying consensus. In Proof-of-Stake, people can run masternodes to validate transactions and receive cryptocurrency as rewards. Running masternode or staking is seen to be an option for stable cryptocurrency income source as it generates and distributes guaranteed rewards to stakers. Staking gives an average annual yield of 10-20% in respected coins one staked in. 

Besides the stable rewards, the value of cryptocurrency keep increasing; if you pick the right coin. Therefore, besides the benefit of rewards, you can also earn profit from coin price gap over time. One challenge of cryptocurrency staking is that many people do not know the know-how and technical details to run masternodes to generate rewards. And that is why Honest Mining platform comes to existence. Honest Mining is a staking pool that helps people to run masternodes and receive rewards together within clicks. 

Although the cryptocurrency market is very volatile, it is one of the markets that promises bright and big potentials. It will be a destructive industry that changes the games of trade, as social media and the internet did before. Therefore it will be wise for you to make way for your future. Start staking today and build a stakefolio for your cryptocurrency.  

Closing Thoughts

Believe it or not, most people in the world become risk-averse when it comes to investment. That is why banks, especially big-name banks are so popular and people keep deposit money in it. But what most people fear actually rarely happens in reality. Therefore, it is time to step out of super-safe haven and try earning passive income in higher return field through staking. Take a little bit of risk. Successful people around you never stayed only in their safe nests!

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