The passive income potential of crypto has exploded in the last year or so. Multiple staking opportunities have arisen, giving holders of cryptocurrencies the opportunity to earn interest on their holdings, much like traditional investments.
When people originally got involved in crypto, they were in it for price rises, but what if those rises aren’t as important anymore, and you can actually earn regular income from your investments?
We see that as the future of crypto investing, especially at a time when interest rates in banks are still low (despite recent Federal rate hikes). And also at a time when coin values are struggling somewhat. I
f you aren’t just in crypto to try and buy low and sell high, how about some actual passive income, earned in a sensible way (and still with much higher interest rates than you’ll find elsewhere)?
Why are staking rates so high?
You’ll probably have noticed interest rates of 20% or even more when you look at different crypto staking options. How can these rates be so high when compared to banks and other funds? The honest answer is that there is still risk in crypto, with volatile prices and an uncertain future. But if you want your money to actually work for you and aren’t happy with earning a low 0.5% leaving it in a bank, perhaps this risk is worth taking.
How to gain from GNOX
The interesting thing about GNOX’s passive income platform, is that while there may be risk in staking—users get to decide how much. Every token holder will be able to vote on what type of investments the fund will take (unlike traditional investment funds). But importantly, they won’t have to manage complicated staking procedures themselves. This makes GNOX perfect for newcomers to crypto investing, who don’t understand how things like that work.
GNOX creates a treasury from a sales levy on all GNOX token transactions. This treasury is then invested in other crypto projects on your behalf. From stablecoins (lower risk) all the way to NFTs (extremely high risk) and everything in-between. You’ll get a say, but you’ll also get to sit back and count your passive income as proceeds are paid out every month.
As the second biggest cryptocurrency in the world, there are tons of different platforms that offer staking opportunities to ETH holders. Some of these rates can be quite competitive, so shop around. But importantly: do your research. Some extremely high interest rates might make you question how secure that staking platform is, and you should probably stick with tried and tested platforms like Kraken and Binance if you’re just starting out. These make it easy to stake ETH and earn good passive income returns.
We think passive income yields are the future of the crypto world as it moves away from just somewhere people gamble on the next coin in the hope it “moons”. While there’s still volatility in the market, surely sitting back and waiting for long-term returns without worrying about short-term price fluctuations is the way forward? And it’s the only way crypto will compete with traditional investments and index funds.