Lower interest rates are fabulous as a borrower and even more fabulous if you are a savvy investor and know how to leverage that borrowing to accelerate your wealth but it sucks if you want to earn income from your assets.
- Traditional interest bearing assets like bonds are producing effectively negative returns.. eeek..
Bank deposits are a joke if you want your money to actually work for you.
- Dividend yield share strategies are also producing less.
So what are Wealth Builders like you and me to do?
I’ve got a set of asset income strategies to share with you so you can get your assets generating income for you, on top of their capital appreciation.
The first asset generated income strategy I’ll be teaching you this month is how to get income from your crypto assets through Staking and Yield Farming.
The second strategy I’ll be teaching you in July is Options. This is how you get your shares earning additional income for you.
I have a Wealth Builder Masterclass on Staking and Yield Farming – How to Earn an Income from Your Crypto Assets .
Go here to secure your place on this comprehensive training.
In this live 90 minute Masterclass we unpack:
- How to earn an income from your cryptocurrency holdings
- Crypto Staking, what it is and how you can earn income by doing it
- Crypto royalties, what they are and how you can create an ongoing passive income stream
- DeFi Yield Farming – what it is and how to do it
- Plus I will share the Tokens and the crypto services you can earn an income from.
Back to getting your crypto assets earning an income for you.
The two primary ways you can get cryptos earning income for you are through Staking and Yield Farming.
Let’s cover Staking first.
Staking is a less resource-intensive alternative to mining to get crypto tokens (other than just buying them). It involves holding your specific crypto tokens (your stake) in a cryptocurrency wallet or on a specific exchange to support the security and operations of a blockchain network. Staking is the act of locking your crypto tokens away to be used by the network and for that you receive rewards. Think of the staking rewards as royalties.
A royalty is a payment one party makes to another that owns a particular asset, for the ongoing right to use that asset.
Take a computer manufacturer, for example. It pays Microsoft a royalty for the right to use its operating system on the computers it makes.
Gold mining is another popular example. Gold producers get upfront capital from gold royalty companies. And in exchange, the royalty companies get a percentage of the production over the life of the mine.
This exchange benefits both parties:
- The gold producers get the capital they need to start and run their mines. And often at better terms than what they’d get from traditional banks.
- And the gold royalty companies can build a diversified portfolio of royalty assets that give it an income stream. They can also benefit from exploration upside, which could increase production and the life of the mine.
Today, you can get these “royalties” from crypto assets, too.
As I mentioned above, the process is called “staking.” You benefit just like a gold royalty company. You get to make use of your asset – in this case, your crypto tokens – to receive rewards in the future. And just like the growth a mine sees from exploration, you can benefit even more as a project’s network grows over time.
The second way to earn income from your crypto holdings is through DeFi Yield Farming.
Yield Farming or more akin to lending your capital in exchange for an interest payment.
Yield Farming, is also referred to as liquidity mining.
Like Staking it means locking up your cryptocurrencies and getting a return on them – specifically DeFi tokens on DeFi networks. The holdings are locked up in the liquidity pool. These tokens are then made available to be borrowed by some startup applications in return for interest payments. Hence the word liquidity – they are made available for start ups to get liquidity in the tokens they need at a cost, and you the lender gets some of that payment.
Just as a bank takes a deposit from a customer and pays him 1% interest and then loans that same amount out to another customer and charges 5% in interest, a decentralized protocol will do the same thing but with a “smart contract” in the middle to reduce cost and increase efficiency.
If you want your assets working hard for you and in particular earn income for you, learning how to Stake and Yield Farm crypto holdings is a very useful strategy to add to your investing skills.
If you want to know how – join me on the masterclass here.
Keep expanding your knowledge so you can get your money working even harder for you so you can get on with living the life you really want.