Throughout the years of growing your portfolio, but particularly when you want to start living off the funds you have built, you're going to want income opportunities – not just growth. Stability, not volatility, becomes critical at this point.
This is where another sector of crypto, DeFi, really comes into its own. DeFi (Decentralized Finance) provides opportunities to put your capital to work in generating an income with maximum efficiency, bypassing the delays, costs and middlemen of the traditional financial sector. As a result, the yields are generally much higher – often as much as 20% per year. And, because these yields are available for stablecoin holdings, you won't have to worry about the risk of your funds dropping in value, like bitcoin might.
While figures vary according to market conditions, taking this yield of 20%, you would need a total fund of $250,000 to reach that $50,000 per year target.
To achieve that, you'd likely need to monitor the market closely to find the best opportunities. You'd also need to manage your own crypto wallet and funds, which is the purest form of financial self-sovereignty – not only being your own bank but being your own investment fund and hedge fund. But all of this requires time, expertise, and critically, the confidence and knowledge to ensure your funds remain secure.
An alternative is to use a service like Coinchange
, which makes it easy to deposit funds, lock them in DeFi opportunities, and have them automatically generate a return from the safest and best opportunities on the market.