“If you don't find a way to make money while you sleep, you will work until you die.” - Warren Buffet
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
This is the theme for todays Blog; Delaying gratification and making your money work for you while you sleep, for a much bigger payoff in the future, using PLSX.
Terms to know
Dollar Cost Averaging: instead of waiting for a lower price to buy all at once, DCA’ing is spending smaller portions of money to invest over time in order to average out against any dips in price you may experience with a given token.
Strategy 1: Compound PLSX
In the PulseX Exchange, there are single sided staking pools where users can place their PLSX and earn a reward token. You do not need any other tokens in order to earn the rewards, just PLSX.
The problem is that currently on Testnet, there is both a limit to the amount that you can stake in a single PLSX pool, as well as the reward percentage is non-compounding currently. Though this my change once Mainnet goes live, having strategies in place in case these apply to mainnet are critical.
Let’s actually go into PulseX and talk about it more(see video at the bottom of the page and start at the 1:47 mark).
So simply put, the strategy here is to utilize the rewards to purchase more PLSX.
Once more PLSX is purchased, you can either re-stake the PLSX you bought into the pool; OR if there is a limit on the amount per stake, simply create a new account in Metamask and send the additional PLSX there to be staked in a new pool.
Over time, this could reward you with enough passive income to potentially live off of, or at a minimum significantly impact your living situation depending on reward % and the price of PLSX.
You would continually do this until you had enough PLSX where you are making the amount of money you need from the rewards for whatever your goal is.
Strategy 2: Dollar cost average
Instead of using the PLSX rewards for the first while to buy PLSX, you could also use the rewards to buy another token that you have not purchased but wish to; either on a weekly or daily basis.
If you missed the PLS sacrifice, didn't get in on Hex early enough, or don’t currently make enough money to consistently DCA in to a given token, this is a great strategy.
By using the rewards from PLSX to DCA into tokens you want, you can slowly build up your portfolio over time and not have to pay a dime additionally out of pocket if you don't want to or can’t.
After buying either PLS or HEX, can you use those to make more passive income?
Simply, yes. With either Hex or PLS, you have the ability to earn passive income as you sleep. With Hex, you can stake and earn very high rewards in the future; The downside is you cannot touch the Hex until the stake has matured without some sort of penalty.
The good news is, when you stake that Hex you will be able to mint the Hedron(HDRN) token every day for the life of the stake, making this a sort of 2 for 1 purchase!
What about PLS?
While PLS does not have the same staking and reward system that Hex has, it is integral to anyone who wishes to transact on the chain. This means that with adoption over time, PLS is likely to see a steady increase in price movement; assuming adoption increases over time.
PLS also can be used to earn more PLS by Delegating or “voting” for a validator on the network and is only locked for 24 hours. So even if the rewards are not as great as HEX or PLSX, the likelihood of price increase over time is quite good.
This strategy is making your rewarded money grow in a diversified fashion while you sleep.
Strategy 3: The Dip Fund
This strategy is a great way to not only DCA into tokens you want but also catch dips or even have money available for new Products coming out. So to do this strategy, you figure out how much of your reward earnings from PLSX you wish to use for both good opportunities and to DCA into tokens of your choice; ie 70:30 split, 60:40, etc.
Once you have decided on your ratio, you make sure that you are only spending the percentage of rewards you predetermined on whichever token you wish to DCA into. (70% etc) Continue to allow your smaller portion to build up over time.
When a token you really want more of finally dips, like all cryptocurrencies tend to do, this is the time to capitalize with those available funds and make a purchase!
Now, you can split this “Dip Fund” as well; by only spending a certain amount of this fund, you will always have some extra $ in your wallet to capitalize on future opportunities. If you spend everything all at once, it may take some time to actually recoup the Dip Fund; Meaning you may miss out on future opportunities!
So in summary, by DCA’ing with a portion of the funds and waiting for opportunities that arise using the other half of the Fund, you will allow yourself flexibility on how you grow your portfolio and never be without funds!
But let’s add a bonus round in.
Bonus: The hardcore saver
This strategy is for extreme delayed gratification.
With your PLSX rewards, split the DCA fund in half(also keeping a small allocation for catching dips and opportunities), and buy specifically PLS and HEX.
Stake your PLS with a validator to earn rewards.
Then, take the PLS rewards and the portion of the rewards you get from PLSX to buy HEX.
The strategy here is to buy an amount of HEX per month and at the end of that month, stake it for between 6-15 years.
The longer you stake your HEX, the more rewards you will receive once the stakes have matured. This way you are using the short term capabilities of PLSX to gain a larger allocation in PLS, which I believe will continue year after year to perform well, as well as to send money to your future self with the greatest reward possible for the money.
If you are staking your Hex for that length of time, you will also be rewarded with HDRN just for staking your Hex for every day of the stake. By doing this strategy you are foregoing short term pay off and maximizing the possible gains you can get from one of the highest yielding and most secure financial products in crypto.
Currently a +6 Year stake gets round 38% APY, and the percentage only gets better as your stakes get longer!
Thanks for reading and I hope you've enjoyed the blog! If you wish to listen to this on the go plus a bit of additional commentary, check out the video below.
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