Staking Digital Currency

Crypto staking is a method of achieving network consensus and maintaining the security of a blockchain network by incentivizing users to hold and validate transactions on the network. It is sustainable because it provides a source of income for those who participate in the validation process, which encourages more people to join the network and support it. Additionally, staking helps to decentralize the network, as it allows for more participants to validate transactions and participate in decision-making processes, making the network more resilient to attacks and less reliant on a small number of validation nodes. Furthermore, many proof-of-stake networks have implemented economic mechanisms such as token burns or buybacks, which can help maintain the long-term value of the network’s native token, further incentivizing users to continue staking and supporting the network

How to Earn Passive Income in Crypto – Step by Step to +$100K

How to Earn Passive Income in Crypto – Step by Step to +$100K

How to Earn Passive Income in Crypto – Step by Step to +$100K

Many people dream of the day when they can comfortably live off their investments and not rely on their job.

Do you know what it takes?

$100,000 a year seems like it will take care of all the necessities. Here’s how Decentralized Finance within crypto and compound interest can get you there. I thought it was going to be hard until I read about DRIP. I kept wondering if it could be done and with a small investment.

What is DRIP?

Drip Network is a decentralized platform on the Binance Smart Chain that gives you 1% rewards in Drip tokens each day. You can either sell your Drip tokens to get cash, or invest them back into your initial deposit to receive more Drip rewards. Follow this:

  1. You have 100 Drip in you deposit account
  2. Every day, you earn 1 Drip (1%)
  3. You can choose to claim that 1 Drip and sell it into something else (BNB, USD, EUR, …)
  4. Or you can compound – reinvest – it into your deposit, which will now hold 101 Drip. You will now be earning 1% of 101 drip every day, or 1.01 Drip.

So how is this sustainable you might be thinking?

Well, every buy, sell, transfer, deposit and so on is taxed 10%. It is these taxes that pay for the 1% rewards that are pushed out to all of us with Drip in our deposit accounts. Only exception to this is buying Drip on the Drip platform (0% tax) or reinvesting your deposit (5%).

Alright, ready to start on the journey toward $100K per year?

image showing graphs and candlesticks
1) Buy Drip on the Drip Platform

So, for this you need $2112 to spend. You can of course start with less or more, results will just come later/earlier.

Now you are ready to get started on the path to building a stream of passive income. The first thing you’ll need to do is convert your USD or other currency to BNB on the Binance Smart Chain and buy Drip within the ‘Fountain’ on the Drip platform (https://drip.community/fountain). Because we’re buying it on the platform, we do not have to pay a tax. At the current price ($0.39), you now have 5 415 Drip.

2) Deposit Drip into the Faucet

The Faucet? undecided

You will probably get the water theme terms by now, so the faucet is the staking rewards deposit account on the platform. 1% a day is what you will receive once your Drip is in the faucet. As a result of the 10% tax, your balance will now show 4 873 drip. I will share my address if you need a buddy address – which you do: drip.community/faucet?buddy=0x41F7edc6ACe7652EA0E5Aee518556286c392D498

3) Receive your first Drip and Hydrate

Once your Drip is in the Faucet, it will immediately start to generate the 1% daily rewards. About 24 hours later, it is time to make your first reinvestment into the Faucet, or ‘hydrate’ — which is what it is called on this platform ( 1% of 4 873 is 48.73 drip, but we also pay a 5% tax for compounding or ‘hydrating’, which puts our new balance in the faucet at 4 919.29 Drip. (4 873 + (48.73*0.95)).

4) Hydrate Daily for a Half Year

You’ll continue to hydrate every day for 173 days. On the 174th day, we will have 27 397 Drip in our ‘Faucet’ account ($10 685 at the current price of $0.39), which means that we are earning roughly 273 Drip per day ($106.47 at the current price of $0.39). A substantial contribution to retire on a +100k a year income!

5) Claim Every Day Until Max. Payout

So now you just claim your 1% every day and reap what you have sown!

But why not just keep hydrating and hydrating? For obvious reasons this cannot continue forever. In order to keep the system sustainable there is maximum payout of 100 000 Drip. So when we have now reached a deposit of 27397.26 is makes no sense to hydrate anymore, as max. payout (3.65 x deposit) is now 100 000.

We need to keep in mind that the Faucet has a Max Payout of 3.65 times the deposit amount!

This Max Payout is the maximum amount that can be claimed (taken out of the Faucet) based on the current deposit amount. So our Max Payout at a deposit amount of  27 397.26 Drip is  100 000 Drip. This means we can now claim every day until ‘Claimed’ = ‘Max Payout’

6) Retire or work less or ...

So here’s the math towards this substantial contribution to a +100k income? Let’s look at it:

  1. 27 397 Drip in the Faucet rewards 1% a day or let’s round to 274 drip per day
  2. 274 Drip per day works out to $106.84 per day at the current price of $0.39
  3. There’s a 10% tax to claim Drip out of the Faucet, so $106.84 * 0.9 = $96.16 per day
  4. There’s another 10% tax to sell Drip, so 96.16 * 0.9 = $86.54 per day
  5. We’re claiming every day (as explained above), which works out to $86.54 * 7 = $605.83 per week
  6. And with 52 weeks in a year, 52 * $605.83= $31 503.45 a year → almost a third of your future income.
  7. Wait – that’s not 100K per year? Correct, but what if you started with 3 wallets? money-mouth

Once you hit max payout and start claiming every day, you will be able to claim for 283 days before hitting max. payout. You would then have received almost $24 500 from this investment. And remember, the restrictions only apply per wallet, you can easily repeat this for multiple wallets to extend the lifetime of your investment.

Note: To perform this exercise, we had to assume that the current price of $0.39 would stay the same over the course of the investment. There has been a low of $0.30 and a high of $186 since the launch, so the price could or rather will fluctuate. I mentioned that there is a maximum-Max Payout of Drip at 100k. If we add more to our deposit, the Max Payout in our Deposit will no longer grow, even if we add more. We will want to claim every day and transfer our money to another wallet in order to continue getting the 1% rewards.

Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. The article may contain affiliate links.

Set To Go?

I hope you’re now about as excited as I was when I discovered Drip. It’s a revolutionary platform that provides a sustainable source of passive income. With a little patience and a little persistence (connect each day to click the hydrate button!) you can also realize your financial goal utilizing crypto compounding.

How to get started with DRIP

1. Go to https://drip.community/fountain and exchange BNB for DRIP using your Meta Mask wallet or Binance Smart Chain wallet. You’ll need at least 1.2 DRIP if you want to deposit it later to earn the rewards.

2. Go to https://drip.community/faucet to deposit the DRIP that you purchased. You’ll need to enter a buddy address in the Referral section in order to make a deposit (clicking the ‘Buddy Detected’ button will automatically populate my buddy address in the field).

Consider joining using my buddy address: 0x41F7edc6ACe7652EA0E5Aee518556286c392D498

3. Deposit at least 1.12 DRIP to receive 1 DRIP in your faucet (Note: Make sure you have enough BNB to pay for the gas fees which are typically ~0.01 or less per transaction. I suggest you leave 0.1 BNB)

4. Once deposited you’ll start to receive 1% daily. Every 24 hours compound by clicking the HYDRATE (re-compound) button.

Dave Ramsey

Dave Ramsey

Dave Ramsey is a well-known financial expert, motivational speaker, and radio host who has helped millions of people transform their financial situations and attain wealth. His approach is rooted in personal responsibility, discipline, and smart financial planning. Here are some of Dave Ramsey’s key pieces of financial advice and the steps you can take to change your financial situation into wealth.

  1. Live below your means: One of the most important things you can do to build wealth is to live below your means. This means spending less than you earn, avoiding unnecessary expenses, and saving and investing the rest.

  2. Get out of debt: Debt is one of the biggest obstacles to wealth. Dave Ramsey recommends paying off all debt as quickly as possible, starting with the debt with the highest interest rate. This will free up more money for savings and investment.

  3. Create a budget: A budget is a powerful tool for taking control of your finances. Dave Ramsey recommends creating a monthly budget that tracks all your income and expenses, and helps you identify areas where you can cut back and save.

  4. Build an emergency fund: An emergency fund is a crucial safety net that can help you avoid debt and weather financial storms. Dave Ramsey recommends saving at least $1,000 in an emergency fund, and then gradually building it up to three to six months of living expenses.

  5. Invest in growth-oriented assets: To build wealth over the long-term, you need to invest in assets that can grow and generate income. Dave Ramsey recommends investing in stocks, real estate, and other growth-oriented assets.

  6. Give: Dave Ramsey believes that giving is an important part of financial wellness. He recommends giving regularly to charity, church, or other causes that you are passionate about.

By following Dave Ramsey’s financial advice, you can change your financial situation and build wealth. Remember, building wealth takes time, patience, and discipline, but with a solid plan and commitment, you can achieve financial freedom and live the life you want

How to Earn Passive Income in Crypto – Step by Step to +$100K

Buying and Selling Crypto via an Exchange: A Beginner’s Guide

Cryptocurrency is becoming an increasingly popular investment option, and many individuals are now looking to buy and sell crypto through an exchange. Exchanges are online platforms that allow you to buy and sell different types of cryptocurrencies, and they are one of the most convenient and accessible ways to invest in crypto. In this article, we’ll go over the basics of buying and selling crypto via an exchange, so you can get started on your crypto investment journey.

Step 1: Choose an Exchange

The first step to buying and selling crypto is choosing the right exchange. There are many different exchanges available, each with its own fees, security measures, and user-friendly interface. Some popular exchanges include Coinbase, Binance, Kraken, and Bitstamp. When choosing an exchange, consider factors such as fees, security measures, and the type of cryptocurrencies offered.

Step 2: Sign Up and Verify Your Account

Once you’ve chosen an exchange, the next step is to sign up and verify your account. You’ll be required to provide personal information and proof of identity, and the exchange will typically use this information to perform a background check. This process is designed to help prevent fraud and ensure the security of your account.

Step 3: Fund Your Account

To buy and sell crypto, you’ll need to fund your exchange account. Most exchanges allow you to fund your account using a credit or debit card, bank transfer, or other payment method. The specific payment methods available will depend on the exchange you choose, so be sure to check the available options before funding your account.

Step 4: Buy Crypto

Once your account is funded, you can start buying crypto. Most exchanges offer a variety of cryptocurrencies for purchase, and you can buy as much or as little as you like. When buying crypto, you’ll be required to enter the amount you want to buy, as well as the type of cryptocurrency you want to purchase. You’ll then be able to see the total cost of your purchase, including any fees charged by the exchange.

Step 5: Sell Crypto

If you want to sell your crypto, the process is similar to buying. Simply navigate to the sell section of the exchange, enter the amount of crypto you want to sell, and select the type of cryptocurrency you want to sell. The exchange will then calculate the total amount you will receive for your sale, and you’ll be able to complete the transaction.

Step 6: Withdraw Funds

Once you’ve sold your crypto, you can withdraw your funds to your bank account or other payment method. The specific withdrawal options available will depend on the exchange, so be sure to check the options before selling your crypto.

In conclusion, buying and selling crypto via an exchange is a straightforward process, and it’s a great way for beginners to get started with crypto investment. By following these simple steps, you can start investing in crypto with confidence, and take advantage of the many benefits that crypto has to offer.

To move money to an exchange, follow these steps:

  1. Create an account with the exchange
  2. Verify your identity
  3. Link a payment method (bank account, credit card, etc.)
  4. Go to the deposit section of the exchange and select your linked payment method
  5. Enter the amount you wish to deposit and confirm the transaction
  6. Wait for the funds to transfer and become available in your exchange account.

Note: The time it takes for the funds to arrive and the availability of certain payment methods may vary based on your location and the exchange you are using

Futures and Options

Futures and Options

What are futures?

Futures are financial contracts that obligate the buyer to purchase an asset or the seller to sell an asset at a predetermined price and date in the future. They are used to hedge against price fluctuations or to speculate on the future price of an asset. Commodities, currencies, and financial instruments such as stocks and bonds can all be traded using futures contracts. They are traded on organized exchanges, and are settled either in cash or with physical delivery of the underlying asset.

What are Options?

Options are financial contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and date in the future. They are similar to futures in that they are used to hedge against price fluctuations or to speculate on the future price of an asset. However, unlike futures, the holder of an options contract is not obligated to exercise the option and can choose to let it expire if it is not profitable.

Options contracts come in two types: call options and put options. A call option gives the holder the right to buy an asset at a certain price, while a put option gives the holder the right to sell an asset at a certain price. The price at which the option can be exercised is known as the strike price.

Options are also traded on organized exchanges and are settled either in cash or with physical delivery of the underlying asset

An example of an options trade

A trader believes that the price of XYZ stock will increase in the next month. He buys a call option on XYZ stock with a strike price of $50 and an expiration date one month from today. The option costs $2 per share.

If the price of XYZ stock increases to $60 by the expiration date, the trader can exercise the option and buy the stock at $50, and then sell it at the current market price of $60, making a profit of $8 per share. If the price of XYZ stock does not increase to $60, the trader can let the option expire worthless and lose only the $2 per share that he paid for the option.

An example of a future trade

A farmer grows corn and wants to protect the price of his harvest, which is due in three months. He sells a futures contract on corn with a delivery date in three months. The contract is for 5,000 bushels of corn and the current price is $4 per bushel.

If the price of corn falls to $3 per bushel by the time the contract expires, the farmer is still obligated to sell his 5,000 bushels at $4 per bushel. So, he has protected his profit by locking in a price that is higher than the current market price. If the price of corn increases to $5 per bushel, the farmer will have missed out on the higher price, but still locked in a profit.