Passive income is the amount of money generated without putting any active efforts. What could be a better option than investing in an asset that grows significantly. But the hassle is no less at all to constantly look for opportunities that deliver the promised returns. Crypto investments emerged as a potential option in the last few years but the road down there is not risk-free.
The widespread adoption of blockchain technology is anticipated in the upcoming years, as indicated by studies. Currently valued at approximately $17 billion, the blockchain technology market is projected by Gartner to generate a business value of $176 billion by 2025. This figure is expected to surpass $3 trillion by the year 2023.
Blockchain technology is solving one of the dreadest issues across the industries such as in supply chain. The global trade hit $32 Trillion in 2022 that shows the tremendous pressure on the existing supply chain. Traditionally it lacks transparency resulting in counterfeiting and increasing costs for various reasons.
Bloomberg indicates that a supply chain may involve 100 individuals and 200 transactions, with the container taking 34 days in transit and an additional 10 days solely dedicated to document processing, as reported. Such inefficiencies in the supply chain could cost almost 10% of the overall expense or could be more.
Considering all these scenarios, if you will think to start your investment journey with $5,000, is that even possible to expect even a decent return?
Crypto mining was one of the first methods to generate income in cryptocurrencies. It is required to solve mathematical problems in order to validate transactions over blockchain in exchange for mining rewards. However, lucrative returns in crypto mining lured more people towards and eventually made the space competitive and tough to maintain profitability.
The current Bitcoin mining profitability that stays at $0.816/day for 1 terahash/second. Terahash is a trillion of hashrate—computational power—required to mine bitcoin. In 2023, the cost of generating 1THash was around $20. Clearly, for every $20 invested for Bitcoin mining, it generates profits of $0.8.
Liquidity providers (LPs) made impressive returns in exchange for providing liquidity in decentralized exchanges (DEXs). Returns for providing liquidity over exchanges were decent but better alternatives emerged in the space.
Staking crypto assets for lending, yield farming, and validator purposes stays a relevant choice but the issues such as volatility makes plays a concern. Running masternodes emerged as one preferable option given the secure returns up to 18%.
Crypto Staking – Up to 15%
Injective ($INJ) – Injective ($INJ) protocol holds the space among top projects across the crypto market and provides lucrative staking rewards of 15% APY. $INJ users lock their asset holdings to fund a validator. These validators help secure the chain proposing new blocks and attesting other validators’ blocks. In return, they earn a yield in the process.
$INJ token is among the top gainers of 2023. The cryptocurrency rose more than 2,200% year over year. The community is bullish on token and expects the price may go 10X from the existing price of $35 to $300.
Polkadot ($DOT) – Since the start, Polkadot ($DOT) focuses on resolving the interoperability and scalability issues on blockchain networks. Relay chains, parachains, bridges, etc. the layer 0 metaprotocol is making the necessary changes in the space. Users stake $DOT to secure the chain and ensure decentralization and receive 14.8% rewards on their staking.
$DOT community is optimistic that soon after breaking the resistance at $10, the crypto token is set to hit $15. The anticipated price would be double than the existing trading price of $7.
Avalanche ($AVAX) – Avalanche ($AVAX) stands among the top ten tokens across the global cryptocurrency market cap with a market cap of over $9 Billion. It’s a leading layer 1 blockchain and looks forward to beat Ethereum ($ETH) to become the top chain for running smart contracts on blockchain. It has the upper hand in terms of transaction speed and the on-chain nodes help to keep it.
It requires a 2000 $AVAX token to become a validator on the Avalanche network. The staking rewards in return goes as high as 8.6%.
Masternodes – up to 18% APY
Morpheus.Network ($MNW) – Morpheus.Network ($MNW) aims to transform the supply-chain and logistics industry with its blockchain-based middleware solution. Morpheus.Network is a prominent player in the logistics and supply chain sector with an expansive network of over 100 integrations, including major tech providers like FedEx and IBM. Counting globally recognized clients such as Coca-Cola and DHL.
Morpheus.Network establishes credibility in optimizing supply chain processes. Amidst the rising interest in blockchain adoption across various sectors, Morpheus.Network is at the forefront, leveraging partnerships and solutions to drive transformative changes. Its involvement in Microsoft’s Starter’s Hub program underscores its commitment to innovation.
Guided by an expert in UN supply chain matters, the skilled team guarantees the highest quality in their services, and Morpheus.Network’s supply chain product is featured on SAP, elevating its reputation.
The platform tackles blockchain network challenges by utilizing nodes, similar to masternodes, to decentralize its supply chain platform, addressing congestion and transaction fee issues. Investors can explore the opportunity to run masternodes by staking $MNW tokens, with a potential 18% return on investment. The cost to run a single node, requiring 1,800 $MNW tokens, amounts to $2,124.
Investors can stake tokens for up to five nodes, spending $4,248 and potentially earning $764, surpassing returns offered by other investment methods. The prospect of $MNW token value increase further contributes to profitability over time, making Morpheus.Network an attractive investment option in the evolving crypto landscape.
$MNW is trading at $1.18 at present and it saw a 22% raise in the past year. The jump was quite humble given the bleak macroeconomic conditions across the globe. However, currently the token is more than 50% down from its yearly high of $2.48. Even if the token attains the price level back in the coming months, this would end up making the investment more than double.
Flux ($FLUX) – Flux, the cryptocurrency driving the Flux ecosystem, serves various purposes, such as resource purchases, collateralizing nodes, and facilitating transactions on FluxOS. It also rewards miners and FluxNode operators for contributing computational resources.
The Flux ecosystem is committed to advancing the decentralized Internet of the future, known as Web3, ensuring true decentralization without any single point of failure. Unlike other projects claiming to be Web3 while using centralized infrastructure, Flux stands out as the first genuinely decentralized Web3 platform with 100% uptime.
The development of Proof of Useful Work (PoUW) by Flux holds transformative potential for both crypto and traditional industries, addressing sustainability concerns associated with traditional Proof of Work blockchains and challenging negative perceptions from blockchain critics.
The community driven project seeks collaboration from people to run the nodes.
$FLUX staking rewards can go up to 4.5% per year and could start with staking as low as 50 tokens.
RWA Tokens Offer Stable Income up to 13%
Landshare ($LAND) – Landshare ($LAND) stands out as an obvious choice for investors seeking a secure and risk-free return on investment. Real estate investments are renowned for providing a consistent and low-risk return, and Landshare introduces a tokenized real estate ecosystem on the blockchain, revolutionizing investment strategies.
On the BNB chain, Landshare has successfully sold three properties, offering annual returns of up to 13%. The Landshare RWA (LSRWA) token represents ownership in the real estate property unit, with each RWA token equivalent to the value of the property it represents. For example, 100,000 RWA tokens correspond to a $100,000 property unit, providing investors with a direct co-ownership stake.
$LAND serves as the native utility and governance token within the Landshare ecosystem, facilitating transactions and value exchanges across the platform. With an impressive growth of 200% in the last two months, the $LAND token has demonstrated resilience, surging over 160% year over year despite the challenges in the broader cryptocurrency market.
Presently trading at $1.5 with a daily surge of nearly 11%, the $5 million market capitalization suggests that the token is undervalued. Considering its historical performance, there’s potential for $LAND to double if it reaches previous highs and potentially increase tenfold to realize its true value in the future.
Pendle ($PENDLE) – Explore the world of tokenized yield with Pendle ($PENDLE), a pioneering protocol reshaping the landscape of future yield access for investors. At its core, Pendle features a distinctive Automated Market Maker (AMM) mechanism and a variety of yield components, setting it apart in the crypto space.
By leveraging Real-World Assets (RWA), including stablecoins like sDAI and fUSDC, Pendle extends beyond traditional boundaries, tokenizing diverse assets such as land and precious metals. It introduces traditional finance instruments to the decentralized realm of DeFi, revolutionizing how users interact with and benefit from various assets.
Instrument | Investment | Returns(yearly) | % returns | Risk |
Staking | $1000 | $150 | 15% | Moderate |
Nodes | $1000 | $180 | 18% | Low |
RWA | $1000 | $130 | 13% | Low |
Mining | $1000 | $40 | ~0.4% | High |
Source: https://blockchainreporter.net/5000-month-passive-income-in-depth-analysis-staking-vs-nodes-vs-rwa-vs-mining/