DeFi is a relatively passive and reliable form of income within the Crypto space. However, during a bear market, the dollar valuation of generated yields tends to drop significantly. This takes place across the board, as altcoins usually go on to correct at least 90% from the bull market peak. Essentially, you would be better off compounding yields, as opposed to realizing them.
This dynamic places investors in a somewhat difficult position. How does one go about earning Crypto income if Defi yields and altcoin valuations are in the dust? There are two very efficient alternatives that I have seen to be extremely consistent, regardless of market conditions. This is always a very important aspect to consider: What happens if the market corrects?
Many investors only consider and plan around market dynamics that are in their favor. However, what happens if the market turns against your plans and ideas? This is why the following ideas are so very powerful to incorporate. Firstly, they perform in any market, and secondly, they create a level of stability when it comes to your Crypto income.
Traditional Residual Income Ideas
When you mention the term “passive income” in relation to Crypto, it is often accompanied by thoughts of staking. This approach however requires capital allocation, and as just mentioned, often is not very profitable in a bear market. Investors can however turn to legacy-styled passive income models via affiliate marketing and others.
Even if a particular idea is not Crypto-based, many opportunities offer payment in Crypto. The affiliate model has been an extremely successful model in many industries. Developing teams and succeeding in this particular environment is to some somewhat of a gifting. There are those who just seem to excel in this particular field.
If you are earning ad revenue or being paid by a platform that utilizes advertising networks, you are indirectly leveraging this model. There’s only one reason why people will pay to run ads and it all evolves around this particular niche. There are many Crypto enthusiasts currently benefiting from this model without even realizing it.
Good Old Fashioned Work
Yep, that’s right! Choosing to rather get busy than simply complain is always a good place to start. Many have turned to content creation in recent years and have managed to earn additional Crypto via this particular strategy. A blockchain such as Hive is a great place to begin building a brand. It’s important to note that no matter how you go about this particular idea, it will require time.
Building an audience and establishing a reader base takes time. Interestingly, content creation ideas often make use of the first idea as a form of income or monetization. They can operate independently, but I have often seen how these two ideas tend to overlap. Even passive income requires work, even if it is only in the initial stages. So many would like to earn Crypto without doing much at all.
However, this is a rather unrealistic expectation, unless you are incredibly wealthy and simply put your capital to work. These are two ideas that pretty much anyone can do. Other alternatives such as trading require knowledge and a particular skill set that often takes years to develop. By harnessing these particular approaches, income generation can begin.