How can anyone sleep well if they had a significant portion of their capital in it?! I mean, in 2021 alone, Bitcoin price swung from US$60k to US$35k and back. My personal take is that unless it's easy, I'm not going to do it.I had always dismissed cryptocurrency as a fad - too volatile for any decent, conservative investor to grow their money with, sustainably. In the crypto space, it's already risky enough. Like I said, there are those risks that are involved that it really depends on what your risk tolerance. But for those holding tokens, not necessarily on a centralized exchange. Personally, I just have the one token that I stake, and just because it's easy I'm going to hold it on Coinbase. I think as you go further and further down, the token list, let's say in terms of market capitalization, the risk goes up with staking in a particular token. The smaller tokens, certain platforms like Coinbase will allow you to stake just by holding on the Coinbase platform and others, you need to seek out ways of doing it. For certain coins, it's impossible to stake for most people. That was the number a while back that I was looking at. For Ethereum ( ETH -2.95%), in order to stake from the Beacon Chain, you need something like $400,000 worth of crypto. Over time, I anticipate that probably most tokens will be able to staked.īut for passive income generation, it's more of a complex discussion because there's actually staking on a proof-of-stake network where you're staking on a blockchain, for example. Like I said, there are an increasing number of platforms where you can stake tokens. MacDonald: Well, first of all, not all tokens can be staked.

It's going to vary for everybody and we're not saying how much of Brandon's portfolio should be in staking, but do you have a personal opinion on this? Quast: Along those same lines, Brandon Fong asks, 'What are your personal thoughts philosophies on staking? What percentage of your cryptocurrency would you allocate the staking and why?' This is a personal question here. Looking at those risks is important to do. Personally, there's one token that I have that I earned passive income on - that's Tezos ( XTZ -1.86%) - but other than that, I think it's fine if it's on a major platform personally, I do it on Coinbase ( COIN -11.27%), but there's an increasing number of applications that are offering this, and some are maybe better than others. There's price volatility and with staking some of your tokens and earnings and passive income, it depends on the particular platform, but you might be locked in for a specific period of time, can't sell, and if the token drops 90% in value, doesn't really help you if you're running at 10% yield. Two main risks are that the platform that one stakes that tokens on could, there's always a potential loss of your tokens from whether it's a hack or an outage, what have you. On the other hand, there are some risks with whether it's staking tokens or finding ways of earning passive income. Whether it's staking or what have you, there's value that can be created there and probably makes sense to capture some of that value. Generally speaking, there aren't cash flows necessarily with cryptocurrencies, but there are ways that various decentralized applications can allow for income streams to be provided.

On the one hand, if you're going to hold this crypto for the long term, it probably makes sense to lock it in somewhere and earn a return on it. For me, when I think about passive income in the crypto world, there's maybe two sides of the coin.

I think the passive income argument with crypto is certainly interesting. A lot of those tokens have been highfliers of late. The Celsius Network is definitely an interesting one to look into and similar in some ways to Compound ( COMP -2.50%) and Aave ( AAVE -1.47%) that I brought up earlier. Are you familiar with Olympus ( OHM -0.76%), symbol OHM? Thanks.' Any thoughts there on passive income?Ĭhris MacDonald: Yes. Long-Time Listener, First-Time Caller says, 'Any thoughts about using Nexo ( NEXO 2.89%), Celsius ( CEL -12.46%), and BlockFi for passive income. I'm going to put you on the spot here, Chris. Jon Quast: As we transition out of the news section of today's show, I did want to hit a couple of questions over here in Slido.

Passive income crypto