With this post, I will share my complete crypto passive income strategy I have been building and following for more than two years. It’s a strategy that allowed me to change my life completely, quit my job, and live financially free. Accordingly, you won’t find any quick tips on making a couple of dollars quickly with this post. However, if you are genuinely interested in creating passive income and reaching the level of financial freedom, this post holds enormous value. So let’s dive into it!

Why do you need a passive income strategy?

When you search for passive income on the web or Medium, you can find thousands of articles, posts, and how-tos. On the one side, some of them simply provide a list of possible methods to earn passive income. On the other side, there are many articles about “how to earn $1,000 in a week” or “how I make $300 a day.” And finally, there’s a humungous amount of scam articles—simply aiming to rip you off.

However, just throwing money into a crypto mining project or building or Starting a YouTube channel won’t help you in the long run. On the contrary, you should have a clear strategy to follow before you start your passive income journey. Of course, the system has to be adapted, improved, and adjusted along the way. However, it should provide you with a clear framework and guidelines.

Why do I know? Because I made the same mistake in the beginning. I researched for opportunities and methods and went for them. However, after a couple of months, I had to admit that I completely lost track and drowned in complexity. That was the time when I started with my passive income strategy.

Crypto passive income strategy — Something that worked for me

As you will see in the chapter, I build my passive income strategy mainly around crypto and DeFi projects. But, of course, that doesn’t mean that crypto and DeFi are the right strategies for you. On the contrary, you should build a strategy that fits your needs and goals. Actually, it doesn’t matter if you go for cryptos, affiliate marketing, or anything else. You should have a strategy that reduces your risks and clearly shows what to do with generated returns.

My passive income strategy — Overview

In the next chapter, I will guide you step-by-step through my entire passive income strategy. Once again: It’s detailed, has lots of content, and is complex—but from my POV, super-valuable.

Crypto Passive Income: Here’S My Complete Strategy (Must-Read!)

The above chart gives you an overview of my complete strategy. Here are some critical aspects of understanding:

The strategy is built around three pillars: Money Generator, Crypto Invest, and Traditional Invest
There’s a clear risk shift from left to right: Money Generators are high-risk investments, whereas Traditional Investments are low-risk.
Contrary to the risk shift, the expected returns decline from left to right: Money Generators create super-high returns, whereas stocks or ETFs create moderate returns.
I will never take assets from a lower-risk investment and put them back into a high-risk project (for example selling stocks and investing the return in crypto mining projects).
However, it is allowed to re-invest the return of lower-risk investments in higher-risk projects (for example taking stock dividends and buying cryptos with it).

Let’s have a more detailed look at the three pillars!

Money Generator

Projects that are shown within the Money Generator pillar have —as the title already says— exactly one single goal: Create money, fast! At this stage, I go for high-risk/high-reward projects. At the moment, most of the money generators are built around crypto mining projects. However, this isn’t fixed. Actually, I put lots of work into this area, searching for new opportunities and trying new approaches. Usually, I search for projects that generate more than a 1% daily return. Accordingly, the list of money generators is super-dynamic. Sometimes I add a couple of new projects every week, and sometimes they are stable for several months. Currently, I have the following projects in my portfolio:

Baked Beans: BNB Mining Project (Link)
BNB Miner: BNB Mining Project (Link)
Animal Farm (DRIP Garden): Drip Mining Project (Link)
Grape Finance: Grape Mining Project (Link)
CZpegs: Token farming (Link)

Here are a few aspects that are important when it comes to Money Generator:

It is essential for me to have several projects at the same time. Therefore, I never put all eggs into one basket.
Money Generator projects can fail — that’s ok! However, you must be aware that high-return projects can go south, and you lose your investment.
High-risk projects require extensive research! There are tons of projects out there that promise astronomical returns. But unfortunately, the number of scams is astronomical too. Therefore, you should spend lots of time researching to minimize the risk of a project failure.

Crypto Invest Pillar

Alright, once you have your Money Generator set up, you have to think about what to do with the return. That sounds trivial, but I can tell you it isn’t. Provided your money generator works smoothly and generates daily returns, you will quickly reach the point of not knowing what to do with the returns. And without a strategy, the risk of investing in the wrong projects grows with your returns. Therefore, I have a clear guideline that returns from high-risk investments flow only into lower-risk investments. As you can see in the below screenshot, lower risk for me is all about crypto staking and holding.

Stable Coin Staking

Stable Coin Staking is the safest investment under this pillar. Usually, I select a couple of Money Generators (currently it’s Baked Cats, Baked Beans, and Solar Farm) that will solely feed my stable coin staking pools. However, when it comes to stable coin staking, I’m pretty flexible again and constantly search for the best opportunities. For example, lately, I staked USDD on Kucoin since it generated 60% APR and on Bybit (99% APR). However, this is only one example. Here are a couple of platforms I usually use for stable coin staking:

ACryptoS

Staking

Besides stable coin staking, I also stake more volatile crypto assets. These are coins that I would buy either way because I think they have a bright future. Therefore, I regularly buy Avax, One, and BNB and stake them on different platforms. Of course, you can select totally different coins and go for Bitcoin, Ethereum, and Cardano — or something else. However, I wouldn’t go for small-cap gems since I am not looking for the highest returns with this pillar. Here are my staking guidelines:

I regularly buy (several times a week) and follow the DCA approach
I hold long-term and have no plans to sell my bags in the near future since I genuinely believe in the assets.
I compound staking returns to grow my bags further.

High APY Staking Projects

I know that many people would rate such projects as super risky. However, I think differently. High APY projects and projects that offer APY of up to 100,000% or even 400,000%. And it’s true: There are many low-quality and scam projects in this field. Nevertheless, and again, it all depends on thorough research and analysis. High APY does not necessarily mean that it is a scam. Nevertheless, compared certainly bears a higher risk. That’s compared to stable coin and crypto staking why I move returns directly to my stable coin staking pool.

So what’s the essential part when it comes to high APY staking projects:

Timing is everything: Usually, such projects are sustainable forever. Therefore, you should avoid investing in projects that are older than six months.
You have to dive into the community before investing! This is super essential to get a holistic view of the project. Join their Discord and Telegram channels and check how active the devs are: Do they respond to questions, can they outline a clear roadmap, how do they communicate, etc. By doing so, you can rapidly separate scam projects from legit ones.
There has to be more than just a token: Projects that just offer another token with a high APY won’t succeed anymore. There has to be much more to make the project attractive to the masses: NFTs, games, play-to-earn, etc.

Traditional Invest

Finally, here’s my low-risk pillar. Every month, I take a certain amount out of my stable coin staking pool and put it into “old-school” investments: Stocks, ETFs, gold, commodities, bonds, etc. Actually, I could make another drawing that shows how I split my assets in that field—but that’s not today’s topic. So instead, the critical aspect again is: that I reduce risks. At the same time, I regularly move assets to my bank account.

The amount of money I transfer to my bank account and traditional investing isn’t fixed. It depends on the current market situation, stablecoin staking offerings, and other aspects.

This post is not financial advice. Please do your own research!

Crypto Passive Income: Here’S My Complete Strategy (Must-Read!)