Speculation Takes Too Many Holidays
If you want to generate income in Crypto via speculative investing and trading, you are likely frustrated. Even in a bull market there are periods of sideways chop and stagnation. Whether it’s trading or investing, any speculative endeavor requires volatility. However, very few market participants are equipped to harness the power of volatility. The average Crypto investor is only familiar with long-term long positions.
They buy an asset and then sit around waiting for it to appreciate. Very few benefit from short-term volatility, and even long-term volatility. However, ensuring consistent results requires such an approach. This is why WEB3 models are eventually going to become the predominant choice of Crypto enthusiasts looking to turn a profit. WEB3 models are generally consistent regarding their income-generative capabilites.
Many were initially introduced to WEB3 via SocialFi. However, WEB3 is more than SoFi. A plethora of income-generative ideas exist within the realm of WEB3. SoFi is perhaps the easiest to access due to its low barrier to entry. However, there are many other viable alternatives. I recently published an article addressing DeFi and DePIN as the current leaders in the WEB3 space. This is solely in terms of income generation.
DeFi Delivers
If you conduct a little research, you might be surprised by some of the yields being generated in the DeFi space. Of course, being familiar with the sector provides insight and the ability to identify viable mechanics regarding DeFi protocols. I am looking at short-term and long-term DeFi plays, as I am looking to simplify my Crypto activities. Essentially, a DeFi asset becomes a business once an investor holds a significant allocation.
This dynamic has been addressed in numerous articles of late. WEB3 and DeFi are not only reshaping business ownership but also simplifying it. Minimal oversight is required and gains rack up on a daily basis. A Trade can sit for weeks and even months before making a move into profitable territory. DeFi, especially, provides participants with several key benefits:
- Consistency
- High yields
- Minimal oversight
- Passive & semi-passive models
DeFi participation can provide participants with ongoing real-time rewards while simultaneously freeing up time, your most valuable commodity. Most people position money and wealth above time regarding their life’s hierarchical structure. However, money is replaceable, time is not. Once your allotted time is up, no amount of money can buy you another another minute, never mind a year.
Many have also referred to this cycle as the last opportunity to generate life-changing money. Even if that is not the case, it will become increasingly difficult to exctract value from the market. If you were present in 2016 and 2017 you can attest to how much more difficult it has become selecting high-performing altcoins. In 2016, anything you bought ended up yielding enormous gains. The high tide really did lift all boats.
An Inevitable End
Diminishing speculative returns further complimented by passive opportunities such as DeFi and DePIN will attract Crypto enthusiasts to the wonderful world of WEB3 and its economic structure. Unlike typical investments, WEB3 is an economic ecosystem that once mature will operate and reward participants with a high level of ease and low friction.
Certain WEB3 opportunities such as SoFi can be a little frustrating at times. However, this is a sector trapped in a process of self discovery. Hopefully, in time it will find its feet and establish productive and effective protocols. What many SoFi developers are afraid of admitting is that they are still in a process of establishing long-term productive and viable models. Many platforms adjust their policies because they are still trying to identify what works and what doesn’t.
Furthermore, the sector as a whole usually embarks on a new venture or idea simultaneously. This causes the majority of platforms to adopt a certain idea for fear of being left behind. Essentially, there is very little clear direction within the sector, and understandably so. New ideas often require rather extensive periods of maturation before foundational dynamics are set in stone, so to speak.
Final Thoughts
WEB3 already has amazing opportunities in the form of DeFi, DePIN, and others. SoFi holds a lot of potential. However, it appears to be the sector with the most challenges regarding producing a polished product that actually attracts users. Look at DePIN projects like Grass and others, for example. They have millions of users while the average SoFi platform that has a multi-year lifespan battles to crack a hundred thousand monthly active users.
DeFi and DePIN will continue to experience growth and adoption, making them attractive avenues of income generation. Hopefully, SoFi will mature significantly within the decade. Either way, WEB3 will attract Crypto enthusiasts in the coming years as the market matures and gains diminish. Everything evolves. Catch you next time!
Sapphire Crypto 