Retiring overseas on cryptocurrency income will be very interesting because crypto has only been around for 10-12 years. We have no idea how crypto will fare over the next 20 years, so all we can do is hazard a guess.
If I had to guess, crypto would be even stronger tomorrow than it is today. Every day, crypto’s adoption rate ticks upwards as more people realize the benefits of the blockchain. There has never been a better time to invest in crypto.
Welcome back to the Living Overseas Passively series (101, 102, 103, 104, 105, 106), where we discuss living overseas on passive income. Today, we will focus on setting ourselves up for success with income from crypto.
Multi-Generational Investing
First, let’s talk about our required monthly budget. We have been using $2,000/month in passive income for each source of income, and we will continue with that number. So, we will aim for $2,000/month from crypto.
Our security layer. The first thing I want to do is establish a security layer of income. For our dividend portfolio, we used cash or bonds. For cryptocurrencies, we use stable coins for stability.
My favorite stable coin, USDC, pays us 9% interest on our holdings. That is a livable wage with minimal risk. Indeed, interest from coins is a very appealing proposition in the crypto space.
We have no long-term data on how these interest rates will hold up over time, but I assume they will remain similar to today. With the borrowing and lending protocol within decentralized finance, it’s in everyone’s best interest to keep money flowing into these accounts.
New Year’s Passive Income Resolution 2022
How much would I keep in stable coins? I would aim for the entire $2,000/month from interest from stable coins. Why? Because at 9%, there is no need to take an additional risk with the income you need for expenses. Let’s see how much we need to invest to receive $2,000/month.
$2,000/month equals $24,000/year. (24000/0.09) gives us a total of $266,666 that we would need to invest in our favorite stable coins. That is very achievable, especially over a ten-year window.
Other Crypto investments. We have safely given ourselves a living expenses budget, but we have more crypto investing to perform. We still want to ensure we are beating inflation, and that number can be higher overseas.
Looking at the chart above, we want to invest in other significant coins because of the crypto rewards, plus the ability to grow faster than inflation. I believe that the major coins, like Bitcoin, Ethereum, Polkadot, Cardano, etc., will hit major inflow numbers.
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Inflow means that since these coins have their own smart chains (except Bitcoin), many users will be using their coins to interface with their networks. The more users, the higher the price goes.
I am currently receiving interest on six coins, and I will continue to invest in new up-and-coming coins that pay me interest. Why not receive interest and capital gains?
Passive Income in DeFi. I wrote an entire series on Passive Income in Decentralized Finance, including yield farming and staking articles. Those will be fun ways to add income after paying all our bills with stable coins and major coins.
We will have a lot of time to invest during retirement, so we may be able to catch the latest and greatest coin. It pays to be current on the news with crypto. I just wrote an article about getting rich slowly, and crypto is almost the exact opposite. The fastest mover receives the prize.
The Metaverse and NFTs. Now we will go into the speculation phase of our investments. I have been researching the Metaverse recently, and it will be huge.
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The Metaverse is a digital world atop our current world, and crypto will be a major player inside. Anything that we can do to involve ourselves in the Metaverse, we need to do now. Non-Fungible Tokens will also play a massive role in the Metaverse.
Imagine owning one-of-a-kind digital artwork inside your digital world. You can hang up your artwork for all to see. Sounds unrealistic? It is already happening in various digital worlds. If we want to set ourselves up for huge gains during retirement, the Metaverse and NFTs are the waves of the future.
Conclusion. We have no idea how crypto will fare over the next 20 years. However, if the last ten years are any indication, it will do amazingly well. I would want all my living expenses to come from interest on stable coins. That would give me the maximum amount of security.
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On top of this security, I would add layers of interest from big coins. Then I could speculate with newer coins on DeFi.
Finally, for making huge gains, I would jump into NFTs and the Metaverse. I would find a way to make my content viable in this virtual world.
The world of crypto is fast-paced and exciting. When it comes to living overseas passively, you don’t want to gamble with your retirement. Stay in stablecoins, and speculate with house money. Please follow me on Twitter and my Facebook Page for more investing knowledge. Enjoy and Happy Investing.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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