The Entrepreneurial Life
Cryptoneurs are like most other online entrepreneurs, in that they learn to set up and establish multiple income sources. Very few choose to depend on a single income source, but rather go about building and establishing multiple sources of income. This is more of a reality than it is a choice. However, it definitely has its perks. Choosing to rely on multiple sources of income simultaneously creates an element of diversification.
Do you remember the carnage of 2022? How many people chose to leverage Celsius and BlockFi as a single income source? In other words, the collapse of these entities not only brought their income to an abrupt end, but their working capital was now also lost. This is pretty much a death blow and displays how generating Crypto income from multiple sources is actually a blessing in disguise.
Even when it comes to traditional finance, diversification is always encouraged, and how much more, the Crypto space. Most Crypto enthusiasts have their fingers in multiple pies. Sure, sometimes there is significantly more “weight” attributed to one or two opportunities. However, they realize that this is the most effective, and possibly, the safest way to go about this endeavor. For many of us, setting up an additional income stream is always an exciting adventure.
You will find that many traders eventually become content creators, and vice versa. Essentially, they realize that in order to maximize their exposure and reach, they need to embrace multiple sectors of the Crypto economy. Being willing to expand on one’s predefined ideas regarding income generation is one of the qualities that aid any serious Cryptoneur. Being ready and willing to try new ideas and advancements in the space is key to remaining in step.
Multi-Niche Model
This is where many newcomers to the space face their first challenge. They begin to discover that there is so much more to Crypto than what they previously envisioned. Essentially, they either expand their horizons or miss out. This school of thought also affords Crypto enthusiasts the advantage of remaining on the cutting edge. A typical trader who chose to avoid DEXs and AMMs in 2020 and 2021 would have missed out on some of the most explosive gains of the season.
Yes, Crypto still operates in what is typically recognized as four-year seasons. Not only that but historically, every season has a new “development” that turns out to be the life of the party. In simple terms, being open to and involved in new ideas and developments essentially puts you in line with being exposed to the top performers of any particular cycle. Of course, many are looking to 2025 in anticipation of what will become the next bull market catalyst.
The Bitcoin halving tends to get the ball rolling. However, it is usually followed by the next buzzword and development… and sometimes, even developments. The last cycle saw both DeFi and NFTs coming in as leading trends. Both sectors experienced enormous gains, as they dominated headlines, and even, MSM. A diversified model sets you up for solid exposure, as well as providing a level of safety through diversification.
Final Thoughts
I guess the moral of the story is to embrace diversity and new ideas within the space. You never know what the future holds. If you are earning within these sectors, as well as profiting, especially in the event that any of them boom exponentially, then you are extremely well positioned. At the end of the day, success often comes down to being well-positioned, especially when it comes to investments and financial markets.
That’s another benefit of using Crypto as working capital, or collateral, it’s open to appreciate along with the market. Making use of fiat, in this regard, has very few perks. That being said, it’s all about knowing your market… being in such a predicament during a bear market will work against you. A recent article entitled, “The Professional DeFi Investor” details how to avoid this particular dynamic. That’s it for this one. Keep grinding, and I will see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.