$100K USD / year passive cryptocurrency income

My goal is to achieve $100K USD per year in passive income via cryptocurrency.

There are four main ways to earn passive income with cryptocurrency:

1. Mine it
2. Stake it
3. Lend it
4. Add it to a liquidity pool

I’m fairly conservative—So I’m gong to start slow and see where this thing goes. I hope to learn a bit, have some fun, and hopefully not lose all of my money along the way.

Current passive income positions (as of 2021-10-14):

ETH-USDC liquidity pool

Institution: Uniswap
Invested: $13,000
Estimated yearly income: $8,000.00

GUSD lending with Gemini

Institution: Gemini
Invested: $68,000
APY: 8.05%
Estimated yearly income: $5,474.00

GUSD lending with BlockFi

Institution: BlockFi
Invested: $40,000
APY: 8.25% / 7%
Estimated yearly income: $3,325.00

CAKE-BNB liquidity pool

Institution: PancakeSwap
Invested: $2,530
Estimated yearly income: $1,000.00

NRG masternode + staking

Invested: $3,400 (1000 NRG masternode, 120 staked)
Estimated yearly income: $550.00

LINK-ETH liquidity pool

Institution: Uniswap
Invested: $1,000
Estimated yearly income: $300.00

HNT mining

Estimated yearly income: $225.00

ETH lending

Institution: BlockFi
Invested: $1,500 (0.389 ETH)
APY: 5%
Estimated yearly income: $75

BNB staking

Institution: Trust Wallet
Amount: $343 (1 BNB)
APY: ~21%
Estimated yearly income: $72.03

ETH staking with Kraken

Institution: Kraken
Invested: $1,296 (0.48 ETH)
APY: ~5%
Estimated yearly income: $64.83

BTC lending

Institution: BlockFi
Invested: $1,400 (.024 BTC)
APY: 4.5%
Estimated yearly income: $63.00

XTZ staking

Institution: Coinbase
Invested: $1,200.00 (169 XTZ)
APY: 4.63%
Estimated yearly income: $55.00

ETH staking with Coinbase

Institution: Coinbase
Invested: $70 (0.0185 ETH)
APY: 4.5%
Estimated yearly income: $3

Total: $19,206.86 / year (19.20% of goal)

Clean and smart crypto approach !
It is so nice that I wonder if it will have enough echo here on FF, in the gambling zone.
Crypto is in its best days, no doubt of that
Even if via institution, which is supposed to alleviate somehow the monster inherent crypto risk, I'm still not sure if I would call it conservative, ...but may be it is, in the whole investitional realm context ...all things considered
Good luck, Cowie !

Great thread - I'm interested in following how this plays out.

As far as I can tell the risks involved here are fairly limited relative to payout, but I may be totally wrong on this. I see the risk limited to: 1) crypto longevity/security, 2) the intermediary's solvency, and 3) price risk associated with receiving payment in tokens. Am I missing something here?

With Coinbase going public I think the solvency issue there is less likely... 4.5% sounds pretty nice!!

My next target is $15K / year.

Here is my plan to reach this target:

1. increase GUSD lending on BlockFi to $100K
2. increase ETH/USDC liquidity pool contribution to $10K
3. increase XTZ staking on Coinbase to $1K
4. contribute $1K to the BNB/CAKE liquidity pool on PancakeSwap
5. stake $10K BNB on Trust Wallet

increase GUSD lending on BlockFi to $100K

BlockFi seems like the most un-shady passive investment opportunity in this sea of cryptocurrency shenanigans. They offer a very good rates and seem to be a fairly reputable company.

increase ETH/USDC liquidity pool contribution to $10K

I have been pleased with the performance of my contribution to the Uniswap ETH/USDC liquidity pool. Additionally, the Uniswap interface is simple and straightforward; it does not reek of a scam like other DEXes.

increase XTZ staking on Coinbase to $1K

I don’t particularly like or believe in Tezos. However, I am curious to see how this position performs compared to my other investments.

contribute $1K to the BNB/CAKE liquidity pool on PancakeSwap

PancakeSwap is hilarious. The TLD is .finance, there are CAKE and SYRUP tokens (well, there use to be SYRUP ), they have a lottery, and the analytics interface doesn’t even work.

That said, Binance is is quite the force in the crypto industry. And with all the ETH 2.0 delays, the Binance Smart Chain has seemingly been gaining more and more traction.

I’m very curious to see how this investment performs.

stake $10K BNB on Trust Wallet

I’m going to stake some BNB for the same reasons that I’m contributing to the BNB/CAKE liquidity pool. Binance has created a self-fulfilled demand for BNB, and I don't really see it losing steam anytime soon.

If I implement these changes my positions will look like this:

GUSD lending

Institution: BlockFi
Amount: $100,000
APY: 8.6%
Estimated yearly income: $8,600

ETH/USDC liquidity pool

Institution: Uniswap
Cryptocurrency: ETH/USDC
Type: Liquidity pool
Amount: $10,000
APY: ~40%
Estimated yearly income: $4,000

BNB/CAKE liquidity pool

Institution: PancakeSwap
Amount: $1,000
APY: ~100%
Estimated yearly income: $1,000

BNB staking

Institution: Trust Wallet
Amount: $10,000
APY: ~24%
Estimated yearly income: $2,400

XTZ staking

Institution: Coinbase
Amount: $1,000
APY: ~5%
Estimated yearly income: $50

ETH staking

Institution: Kraken
Amount: $1,000
APY: ~5%
Estimated yearly income: $50

Total: $16,100 / year (16.10% of goal)

We shall see!

Some more risks include:

1. impermanent loss with my liquidity pool positions
2. contract exploits (like what affected SYRUP)
3. ETH 2.0 never happening (I cannot claim my staked ETH until ETH 2.0 launches)
4. me getting scammed/phished

I got locked out of my Binance US account. They want me to send them a bank statement and a video . This will delay my BNB acquisition.

I just added about $1K to a BNB/CAKE liquidity pool on PancakeSwap. I then staked those pool tokens.

This whole thing is extremely shady. However, if it works out, that will be an additional $844.60 / year. I updated the first post with this addition.

I added an additional $9K (to my existing $1K) to the ETH/USDC liquidity pool on Uniswap. The APY for this pool is currently listed as 30.67%. I updated the first post with this new amount and expected APY.

Yeah, it's all relative

Ah good points, these make sense. They sound relatively straightforward to control - at least in the case of impermanent loss (just don't withdraw, right? ) and the scamming/phishing. I'm still working to grasp ETH 2.0 but what I am seeing is showing a nice $8bn chunk in the staking pool.

In any event, I'm curious to see how the APYs vary over time. No way I could turn down yields like these! Good luck ccow

Even though $8B ETH is staked, that only represents ~7% of all ETH [1]. Compare that with the 70% of all Cardano that is staked. 70% seems crazy to me. Is anyone using Cardano for anything? Or are they just staking it and waiting for the moon?

Well, you are the yield junkie after all, right?

[1] https://www.stakingrewards.com/

I just staked 1 BNB with the Fuji validator. The estimated APY is currently 19%. That would be an additional $114 per year with BNB at $600. I updated the first post with this information.

I haven't given Cardano any real attention on account of it's obnoxious community. In the past month or so it seems crypto-pump twitter users and D-list news sites have been pumping the shit out of Cardano (#to the moon). Maybe they have valid points, but the means by which it is promoted don't seem very believable - and I haven't seen many believable individuals or entities supporting it.


Great point!

I just got a bit more XTZ, bringing my total XTZ staking position to about $1K. If the Tezos price stays stable that should be about $50 / year. I updated the first post with this information.

I added another ~$1.5K to the PancakeSwap BNB/CAKE liquidity pool. Thing brings my total to ~$2.5K. With a current APY of 70% that equals $1,771 per year. I updated the first post with this information.

So far my PancakeSwap BNB/CAKE liquidity pool position has been earning ~$5 per day. It seems on track for this ludicrous 70% APY.

My ETH/USDC liquidity pool on Uniswap has accrued more than $100 in fees. Most of these fees have been accrued since I added $9K one week ago. So far this seems on track for its expected yield.

My ETH/USDC liquidity pool on Uniswap has accrued more than $200 in fees as of yesterday.

My BNB/CAKE liquidity pool has been doing well. I've earned ~$44 so far. PancakeSwap version 2 is rolling out so I'm going to have to flip my cakes over to that soon.