lifefinanceandmore

[lifefinanceandmore]

Cake crypto staking

Passive Income idea 3 or How to make passive income with CAKE Crypto Staking for 42,52% Annual Returns

If you have more money, passive income idea 3 will be more to your liking because you can earn alot more alot sooner. 

This is is an idea that can earn you a 42,52% return yearly on your money and more. 

Interested?

Yes?

Ok, let’s dive right in!

Why staking CAKE coins is a great passive income idea?

I mentioned already something about CAKE coin, but I didn’t list it above. 

Honestly, I could have as well…since CAKE coin or pancakes swap is a liquidity provider on Binance chain and the more traffic there is, more liquidity is needed, therefore CAKE comes into play.

The more adoption there is for crypto technology, the more likely more people will be locking their money at Pancake swap or other liquidity providers to secure some of the staking rewards and help the crypto liquidity with it.

I wanted to mention this because, many big crypto chain liquidity providers will grow along with their respective chains.

Will they make as big or bigger gains then their chain coins?

Can’t really say for sure, but it is likely true that these tokens will raise in price as well.

So what does this have to do with CAKE coin being a great passive income idea?

Before I give my full plan, idea and details, lets just say that if a coin offers a yearly return of up to 42,5% for staking it and it is also a coin which will raise in price…at least some amount, then the 42,5% return immediatly becomes even more lucrative, with a very high ceiling potential if the coin performs.

I am a person who likes to check their expenses and income.

What do I mean by that?

Well, if you have an option, asset or whatever you want to call it, that gives you such a high yearly return, then you should be looking on how to capitalize on that and invest as much money as it is possible for you.

Ok, so what are your options?

Depending on where you live or your economic standard, you have potentially many options.

The one I am going to talk about here, is the one I see the easiest to achieve with the least time consumed and not as high risk exposure.

Just a short disclamier before I continue.

When you “play” in the financial markets, be it stocks, crypto, bonds, options, real estate or other, there will always be some risk of course.

There are always some factors that are out of our hands and which we can not cover when making plans, but as I always say, have a good plan and everything will be much easier.

Having said that, let’s do some math to give you practical examples and a better picture what I want to explain.

Do some math to optimise your passive income stream - practical examples

Let’s crunch some big numbers for the sake of the argument.

The numbers proposed in the example might be a bit unreachable for some of you for various reasons going from what you can afford based on your income and life style as well as maybe being someone who doesn’t have good money management skills or the fear of screwing something up, but some may see great opportunity and will look to sieze it.

Example 1 basic staking:

Let’s say you have 100k and you invest it into CAKE coin at 20$/coin.

At this point you will have 5k CAKE coins.

After buying the coins, you decide to go for the 3 months crypto staking option on Binance which yields 42,52% yearly.

You decide to repeat this 4 times in the 12 months frame so 3months X 4 = 12 months where you invested your 100K in USD or Euro, whichever you prefer.

For giving some simple math initially, in a one year span, that will yield you 2126 CAKE coins. 

If you converted that to cash, it would be 42520 dollars or euro if CAKE coin keeps the same 20$/coin value.

Not bad right?

Example 2 compound effect:

In example one we showed that investing 100K in CAKE coin can yieid you 2125 CAKE coins in 1 year if reinvesting the whole 5k coins after each 3 month period.

What if you actually also reinvested the gained CAKE after each 3 months period?

Well, the math gets even more interesting because if split by 4, the 2126 tokens would actually make you around 531,25 tokens per 3 month period.

If you then added those 531,25 tokens that were earned after the 1st 3 month period to your 2nd 3month period so 5k + 531,25 tokens, then after 6 months your earnings would be approximately 50 tokens more on top of the 531,25 tokens that you earn each month.

So In total after half year you would have earned 531,25 x2 + 50 tokens from the reinvested 531,25 tokens that you had earned during the 1st 3 month period.

Are you following along so far?

Read it again or ask in the comments below if things are unclear.

The math can be a bit complex from here on, so I am only going to say that by reinvesting your gains, you could have made approximately 330 tokens more at the end of the year which at the 20$/ token price would be 6,6k more in the pocket.

Where am I going with this some may ask.

I am just trying to demonstrate how much money you could make by staking 100k worth of CAKE for 1 year either by reinvesting the compound gains or not doing so and the extra difference made.

What these two examples demostrate, is how big amount of money you could earn by staking a bigger sum of money.

Now if you want more, double your investiment target, if you can afford less then 100k, divide it by 2, 4 or whatever number is suitable for your case, but in any case do it.