Your Path to Financial Independence: Earn $2000 Per Month in Passive Income With Cake DeFi!
Who wouldn't want to be free and do whatever they want, enjoy time with their loved ones and just live worryless into the day, while their own money is earning more money each and every minute. With Cake DeFi, exactly that is possible! In just a few simple steps, you can achieve a passive income on your cryptocurrencies of 90+% per year.
Since its incorporation 2 years ago, hundreds of thousands of people, also known as bakers, have already discovered Cake DeFi as a way to their own financial independence and use the platform to receive a regular passive income from their cryptocurrencies. We at Cake DeFi always pay greatest attention to the safekeeping of your coins, so that you can sleep peacefully at any time.
In this article you will learn how these sometimes astonishingly high returns are achieved and how you can easily earn $2000 or even more in passive income per month with Cake DeFi.
The Importance of Passive Income For Financial Independence
The secret ingredient in our recipe to achieve financial freedom is compound interest – also called the eighth wonder of the world by Albert Einstein.
For example, if you invest $5,000 today and add $250 every month to it, at an interest rate of 10% per year, you will have saved just about a million dollars after 35 years.
If the interest rate is a little higher, let’s say 15% per year, then after 35 years your investment will already be a sizable fortune of $4.5 million!
You can see: The power of compound interest is huge, and it’s best when it hits your wallet on a regular basis – several times per day – instead of just once a year.
Also, recent crises have shown that dependence on a single source of income is dangerous and, in the worst case, can lead to having to sell your car, your house or other beloved assets that you wanted to pass on to the next generation. Therefore, it cannot be stressed enough that investing to create multiple sources of income is essential. Multiple sources of income provide the necessary protection for your lifestyle from unpredictable, unlikely events, which can however happen to anyone at some point.
All passive income sources have one thing in common: you generate income whether you're awake or asleep, going on vacation or enjoying time with loved ones. That's the wonderful thing about a passive income source: it doesn't require your time. The income comes in automatically and continuously – much like a perpetual motion machine – and is independent of your work effort.
In the following sections, we'll show you a case study on how you can build passive income with Cake DeFi and calculate how much capital you roughly need to get to $2000 USD in passive monthly income – your eyes will pop out, so better pay attention!
Case Study: $2000 USD in Passive Income With Cake DeFi
First of all, we would like to show you an example of how you can achieve a passive income stream of $2000 with Cake DeFi. After that, we will explain our different products and the respective risks involved.
Baker example John
Let's take our baker John as an example, who got referred to Cake DeFi through a close friend and was immediately impressed by the incredibly high returns, yet also somehow skeptical at first.
John first heard about cryptocurrencies a year ago and was immediately excited about the technology and, of course, the enormous potential he saw in cryptocurrencies and the blockchain technology in general.
After extensive research, he invested some money into Bitcoin and has since been the proud owner of 0.75 BTC! Back then, he invested a much smaller dollar amount, but due to the sharp increase in price over the last 12 months, his capital now amounts to the equivalent of about $34,000 USD (as of 12 August 2021).
John is very optimistic about the future of Bitcoin and continues to believe in its potential, so he doesn't want to sell his holdings. All he wants to do is to realize profits and receive a passive income from it to pay off his bills.
And that's where Cake DeFi comes in.
Instead of having to sell his BTC stack to make some money, John simply uses Cake DeFi's various products to generate a passive income of about $2000 per month. The good thing is that he does not have to sell a single cent of his initial investment.
In order to achieve this, John uses all three Cake DeFi products: Lending, Liquidity Mining, and Staking.
The Lending product, which earns at least 3.5% and at best a full 6% annualized return, is John’s first investment decision. Hence, has invested 0.05 BTC of his 0.75 BTC into Lending and is exposed to virtually no risk, because since Cake DeFi's incorporation, not a single batch has not been paid out. Moreover, the promised return is insured and guaranteed by our external partners.
John invested the bulk of his crypto assets (0.55 BTC) into the Liquidity Mining product, which offers a whopping 70% return per year. These huge returns do not come without any risk, however, which is mainly related to a concept called "impermanent loss"; yet we'll get into that in more detail further down below.
Last but not least, John also invested the equivalent of 0.15 BTC into Staking – the third product offered by Cake DeFi. Staking is not available for Bitcoin, but it is available for DFI –– a coin that correlates closely with Bitcoin and offers an annualized return of over 90%. Looking at the last 12 months, it can be seen that DFI is not only highly correlated with Bitcoin, but has actually outperformed Bitcoin, which can be taken as a clear indication that DFI is considered one of the best investments in the DeFi space.
But now it’s time to calculate Johns monthly passive income in all three product categories. We will start with Lending:
Monthly passive income from Lending:
0.05 BTC (investment) * 0.035 (annual return) * $46000 (conversion to USD) / 12 months = $6.71 per month
Monthly passive income from Liquidity Mining:
0.55 BTC (investment) * 0.7 (annual return) * $46000 (conversion to USD) / 12 months = $1475.83 per month
Monthly passive income from staking:
0.15 BTC (investment) * 0.9 (annual return) * $46000 (conversion to USD) / 12 months = $517.5 per month
Total monthly passive income:
$6.71 + $1475.83 + $517,5 = $2000.04 passive income per month
After you have become familiar with the different products and the huge potential behind them, we would like to tell you more about how they work and the associated risks.
Lending Product and Risks Simply Explained
Cake Lending is our most popular product. No wonder, since it offers sugary and juicy returns of up to 7% guaranteed per year.
Lending gives you the opportunity to benefit from the profitable and safe investment strategies, which for a long time were reserved for institutional investors only.
For example, the returns that we can pass on to you are generated by lending the total capital received to large crypto exchanges, which in turn provide this capital to their own users, for example for leverage products, and thus charge fees for it themselves. Other strategies, such as professionally selling call options to generate cash flow, are also used here.
The kicker: as an individual investor, it is hardly possible to provide enough capital to be considered as a partner of a major crypto exchange. However, with the help of Cake DeFi, you can do this and enjoy an investment product that has been closed to small investors for a long time!
And the best thing about all this is that the already very manageable risks (such as the bankruptcy of large, established crypto exchanges) are covered by trustworthy partners like Genesis, Signum or Sparrow. Furthermore, these companies also guarantee the returns that we can then pay out to you.
So Lending is a product you can really enjoy without any guilt!
Liquidity Mining Product and Risks Simply Explained
Liquidity Mining is probably the most exotic product on our menu, as it requires a bit of baking knowledge.
After you have read up on liquidity mining and the risks involved, a little taste might be worth it. Currently, most cryptocurrencies such as Bitcoin, Ethereum or Litecoin offer a return of over 70% per year!
Now you might ask yourself how such high returns can be earned at all. The answer is quite simple: With Liquidity Mining, you provide liquidity to a decentralized exchange, in this case the one of DeFiChain, and thus enable decentralized trading of the coins listed on it.
In return, you receive a portion of the trading fees, as well as a portion of the block rewards, based on your share of the liquidity pool. The important thing to note here is that the expected returns will decrease as liquidity increases. The reason for this is simple: if more people provide liquidity, then everyone is competing for the same piece of the pie and thus everyone gets a smaller slice of it.
Also not to be underestimated is the risk of impermanent loss, which occurs primarily when one currency pair / coin pair falls or rises significantly more than the other. If you want to learn more about liquidity mining, the potential returns and the associated risks, you can find detailed information about this in the following article: https://julianhosp.com/impermanent-loss-other-liquidity-mining-risks-explained/
However, according to empirical data, the expected returns so far are significantly (!) higher than the Impermanent Loss. Thus, liquidity mining at Cake DeFi is a treat that can really fill you up!
Staking Product and Risks Simply Explained
Staking is the lightest diet in our offer and is particularly well suited for those bakers who want to grow their cryptocurrencies.
Staking is a proof-of-stake algorithm that is used by various cryptocurrencies and secures the network - similar to the proof-of-work for Bitcoin. The big advantage here is that the concept is not only more energy efficient and virtually as secure as PoW, but on top of that it also allows anyone to earn returns on their staked cryptocurrencies!
The only risk one is exposed to here is the unpredictable price development of the underlying cryptocurrency itself.
Furthermore, it should be noted that the returns vary greatly from coin to coin - this is mainly due to the underlying issuance structure of the respective coin. In general, however, the longer a cryptocurrency has been in existence, the lower the returns. In analogy to Bitcoin halving (a reduction of the emission implemented in the code), staking coins also experience a reduction of the emission and thus the returns at regular intervals.
By far our most popular staking coin at Cake DeFi is DFI - a cryptocurrency that has been rising rapidly in recent weeks and months, and is currently sweetening your account with sugar-sweet 90% staking returns!
What are you waiting for? Get passive income and may the force of compound interest be with you!
You've now learned quite a bit in this article. Starting with the power of compound interest and the important role that a regular passive income plays in this, to the various products of Cake DeFi, with which you can realize exactly that.
Now it's time to apply the knowledge you've learned! If you click on this link, you can immediately open an account with Cake DeFi and even get a $30 USD signup bonus when you deposit $50 or more. Where else can you get such a good deal?
Or open a Cake DeFi account directly here:
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