Crypto is still the wild west. If I had to guess, it is going to be another 20 or 30 years before the world knows what to do with it. If you are looking for income streams from crypto then that might be a bit tough. Lending, staking, or trading there isn't many other options than that.
If you are looking for ways to become financially independent or passive income, then I would suggest buy low and sell high. Use that money to buy assets that gives you cash flow. IE real estate, stocks, ETFs, etc. There is a mountain of options depending on what country you are currently in.
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My current plan is similar to your second option but I still have a long ways to go :)