Passive Crypto Income Beats Seasonal Gains

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7 Jan 2025

The Key
One of the challenges facing the Crypto community is thinking beyond speculation. Yes, bull markets are great. However, those who are unable to strategize and see beyond the realm of speculation spend their time complaining in a bear market when they could profiting. The speculative aspect of Crypto is cyclical. However, passive income within WEB3 is ongoing.
The concept of constant income, as opposed to gains in a bull market, is attractive. Passive income that is generated day after day without any interruptions and at your disposal when you need it is an incredibly powerful tool. Even in a bull market, there are periods of stagnation, even severe reversals. However, passive income mechanisms are superior as they work 24/7.
I have always maintained the opinion that everyone within the Crypto space should be building passive income streams. Passive income is a foundational aspect of Cryptocurrency. If you are not leveraging the opportunities within the space, you are missing out! There is no shortage of opportunities and possible strategies to deploy. It’s a simple case of setting up mechanisms and deploying capital.
Building Beats Speculation
One of the benefits of passive income over speculative gains is the aspect of certainty. Nobody knows what tomorrow holds… a sudden move in the market can bring speculative gains to an abrupt end. This can continue for days, weeks, and months. However, passive income guarantees some level of income every day. Yes, market conditions will affect this form of income to some degree.
The point to remember is that there is an enormous difference between earnings being impacted and entirely forfeited. You might earn less during a market correction, but you are still earning. Gains are still being realized, and this is where passive income has the upper hand on speculative investing. My approach is to do both. However, much of the attention must go to permanent income models.
Stability and dependability are key, especially in Crypto. As a Crypto enthusiast, if you can secure an ongoing form of passive income regardless of market conditions, you have achieved the magnum opus of a creative investor. True power lies here. What becomes of the average Crypto investor in a bear market? They repeat the same behavior they exhibited in the bull market.
In other words, they keep buying, thinking the market will bounce. However, the only bounces that occur are dead cat bounces. They end up squandering their gains, many eventually with less than they initially invested before the bull market. Picture a superior alternative. An investor who experiences speculative gains and gains via passive income.
The only way an investor can experience the best of both worlds is to devote time pursuing the creation of viable and sustainable models. Once again, diversification will play a role. A chair needs at least four legs to remain stable. Depending on the design, one could get away with three. The point is stability is achieved through diversification. You cannot rely on a single idea.
Building beats speculation every time. Another point to remember is that speculating requires a fair amount of skill. Maybe not so much in a bull market, but the case regarding consistent gains. Consistency is always the deal breaker. Without it, isolated gains begin to lose their glimmer. No trader can beat the consistency of a passive income mechanism that ticks over second by second.

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Final Thoughts
Once you have lived through a few bear markets, you will begin to appreciate the value of such an approach and why it is so crucially important. When green candles are the order of the day, nobody considers tomorrow. However, tomorrow always arrives, and, eventually, so do bear markets. Make sure you are prepared to weather the storm. Not only weather the storm but profit in the storm. That’s it for this one. See you next time.

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.