How I Generate 10% interest per year as passive income
On average, I earn 10.5% interest as passive income per year. This means I let my money work for me while I’m at my full-time job and sleeping.
Currently I make an additional of $55 USD/ $428 HKD per month. Considering I have such a small portfolio, the $55USD is the cherry on top in addition to my other investments.
To have about $55 USD or $428 HKD per month, you’ll have to invest at least $5,500 USD or 43K HKD in stablecoins.
If you’re interested in learning more about Bitcoin and stablecoins, sign up here (free) to register for a short-course offered by Leinvests!
How do I get this additional income? By investing in cryptocurrencies.
All you have to do is to buy cryptocurrencies and put it in a crypto-app, the crypto-app will automatically reward you interest. However, before you invest in cryptocurrencies, you have to understand what it is and believe in its long-term potential.
As a cryptocurrency investor myself, I believe that cryptocurrencies will play a dominant role in our future monetary system. I don’t think crypto will replace fiat currencies, but crypto will definitely become an alternative method of future payment.
From my own empirical study, cryptocurrencies are being classified as an asset that’s somewhere in between fiat currencies and gold (Lei, 2021).
If you’re interested in how I conducted my empirical research, you can read the full paper here.
By believing in the long-term success of cryptocurrencies, you can confidently buy some cryptocurrencies and start earning some passive income!
There are so many cryptocurrencies out there, which one should you invest in? Learn more about the fundamentals of cryptocurrencies here.
Which Crypto-apps Do I Use to Make Passive Income?
Alike the number of cryptocurrencies out there, there are just as much crypto-apps out there for the purpose of buying and storing cryptocurrencies. These crypto-apps are commonly called “wallets”.
The rule of thumb is to use a crypto-app that is “secure” and has a “well-established reputation.” You don’t want to use a wallet that might steal or go bankrupt in a few years.
What is Celsius App?
Celsius is essentially a flexible cryptocurrency wallet that pays you interest for putting your money in there. One of the perks is that Celsius allows you to purchase cryptocurrencies with your credit-card.
It is important to acknowledge that credit-cards may not be the best way to purchase cryptocurrencies as it chips away a percentage rather than a flat fee from a bank.
But being in Macau, where I don’t have access to a US or UK bank, buying Bitcoin with my credit-card is the only option.
Celsius wallet offer rewards for 44 different type of coins. If you only hold Bitcoin, Celsius pays 6.2% interest (p.a) for storing Bitcoin in your wallet.
Celsius automatically pays you interest without the need to press any subscribe buttons. You will receive your interest payments at the end of each week.
More Perks
The perks of using Celsius is that it allows you to easily purchase cryptocurrencies with your credit-card with only a 2.5% fee. The standard rate for other apps out there is 3.5% fee.
If you think Celsius is right for you, please feel free to use this link for a 10% discount for your $400 dollar purchase of cryptocurrency. (Celsius rewards you with $40 by investing $400)
Another crypto-app that I love is Vauld.
What is Vauld?
Similar to Celsius, Vauld is another wallet that pays you interest when you put money in it.
While Celsius is superior in terms of reputation, size, and features, Vauld wins at interest rates.
In Vauld, you can’t purchase or sell any crypto. You can only store, save, earn, or transfer cryptocurrencies.
Other than investing in Bitcoin and Ethereum, I have invested 5% of my total investment portfolio in stablecoins (Stablecoins is a type of cryptocurrency that are pegged to the USD, which means that the price of one stablecoin is always equal to approximately $1 USD).
The idea of investing in stablecoins is to allow investors to earn higher yields while reducing the volatile nature of cryptocurrencies. This empowers investors to spend stablecoins without worrying about it fluctuating like Bitcoin.
Investing in stablecoin is a great way for me to earn high interest with lower risk relative to Bitcoin. By storing USDC, USDT, and Paxos in Vauld, I’m able to earn 12.68% interest per year.
If you think investing in stablecoins fits you and your investment values, feel free to use this link to earn an extra 1.25% interest per year on your pay-out.
Summary
You must believe in the long-term potential of cryptocurrencies in order to be confident and stress-free about using it to generate passive income.
Earning interest is easy with cryptos, simply buy, place it in your “crypto-app”, and expect to be paid.
To optimise the risk and return of passive income, I highly suggest you to utilise both apps to minimise counter-party risk (risk of the crypto-app going bankrupt).
Celsius is the more reputable compared to Vauld, but Vauld pays a higher interest.
Investing in stablecoins is a great way to earn high interest with lowered risk relative to Bitcoin.
Stablecoins generally pays higher interest than Bitcoin and Ethereum. However, the drawback is it does not have the potential to appreciate. It is equivalent as cash (but digital).
What am I doing with my passive income?
By reinvesting all my interest dividends, I’m able to snowball and compound my returns.
“I’m all about that compound interest.” – Leinvests
How can you take action now?
Download Celsius and Vauld App, so you can learn how to utilize all the features offered by both apps.
Buy crypto on Celsius and start earning passive income today
Read more about “Why you should invest in Crypto.”
Resources:
Download Celsius App here
If you think Celsius is right for you, please feel free to use this link for a 10% discount for your $400 dollar purchase of cryptocurrency. (Celsius rewards you with $40 by investing $400)
Download Vauld App here
If you think investing in stablecoins fits you and your investment values, feel free to use this link to earn an extra 1.25% interest per year on your pay-out.