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Yo AbNormals! 👋 I have an exciting topic to share, passive income, doesn’t that sound amazing!? Don’t get too excited now, you can’t get something for nothing right? In this article I want to share with you what platform or protocol I use to generate yield on my deposits.
I’m not doing a review, because there are so many articles & video’s about each and every one of them. What I want to achieve with these kinds of posts is to provide you with the information, but give you the freedom to explore and experiment on your own.
Information wants to be free, but it's the timing and the placement of the information that's expensive.
I’ve been searching and testing out multiple ways to earn passive income since 2018. It hasn’t been smooth sailing for me, because I’ve been scammed by some shady platforms 🙄. Cough MyPassiveTrades, MTI, Finalmente Cough. I was a total newbie back then, I didn’t know what kind of returns were legit and I didn’t know how to properly research a company, product or team. I’m obviously not calling myself a pro, but I did gain experience from those unfortunate situations.
In this section I’ll be covering custodial and non-custodial services.
Custodial = a third party managing your assets
Non-custodial = you are always in control of your assets
Celsius, BlockFi & Nexo are the platforms I use. All 3 of them have their own team, vision, mission & community. They have all gone through tough times, some reacted better than the other. You can expect ~6-8% on your BTC & ETH and ~10-13% on your stablecoin like USDC, USDT or DAI.
In this video, Guy from the CoinBureau, explained what lending platforms are and what kind of lending platforms exist. He explained it phenomenally well. In simple terms: you just deposit your funds, sit back and watch your account grow.
There’s also Aave which I covered in this post, earning me >10% APY right now.
Of course! Stocks that pay out dividends. I use UpHold and FTX Exchange as my Stock brokers, because of my country restrictions on other platforms. The stocks are fractional so I can buy $1 of a Tesla stock with my crypto. Isn’t that amazing? A very low barrier to entry to try this service out.
The dividends are paid directly into your wallet. If the stock you buy pays out dividends then you can expect between 1-4% annually. I don’t have much allocated in my Stock portfolio because I’m mainly in the crypto market.
Tokenized Real Estate
This is a very unique concept. Who doesn’t like the sound of investing in Real Estate especially when it’s focused on the US housing markets? Well, I’ve been a fan of RealT since I learned about it in Q1 2020.
This is a screenshot of my personal portfolio. My AVG annual return is 11.63%, it’s pretty awesome how I’ve received $400 so far and it’s growing every week passively.
I’m disciplining myself to buy at least 2 tokens per month to grow my account gradually. I reinvest or buy ETH with the rent I receive, it depends on the overall crypto markets. I’m publishing a market recap every Sunday so keep an 👀 on it.
RealT is a platform that offers simplified investments in real estate. Our mission is to democratize access to real estate investment opportunities, curated by a team of real estate professionals.RealT FAQ
How do you buy the asset?
- You make an account and go through the KYC proces
- Choose one of the houses you find interesting (based on your criteria), add to cart and you pay with crypto or a credit/debit card
- The token will be sent on your Ethereum address that you provided in the KYC proces
- Rent are paid out in the form of a dividend. There are 3 options to choose from: directly into your xDai wallet; claim it manually; reinvest;
Take a look, browse around on the website and join the community on Telegram.
There are so many ways to generate yield. No risk = no reward, so always keep this in mind. Is it worth it to give someone else power over your money? That’s for you to decide. There’s always a learning curve when you come across something new and exciting! Especially when it comes to making money. Take your time, don’t rush.
I hope you enjoyed this article. Don’t forget to share it with your friends and family.