In order to reach financial independence and live a long happy life out of the fiat monetary system, I have calculated that I need to earn 2 ETH per month.
I could maybe live on less, but Nelson Mandela once said, that there is no passion to be found in playing small and settling for a life that's less than the one you are capable of living.
At current rates of €2648 per ETH, that would work out at €5296 per month. 1 year ago the ETH price was €1417, so it would have been around 3.5 ETH that I needed to reach my crypto-financial independence. Therefore, in the future, I may also need much less ETH to achieve my goal if it keeps falling at this rate.
How can I reach the target of 2ETH per month?
Without considering any appreciation of the crypto portfolio, some of the options with crypto earn on Crypto.com are:
3 months at 5,5%
This would mean, that to generate my 2ETH per month from Ethereum, I would need to have a stack of 436ETH, which today is €1,15M.
The alternative would be to switch your ETH into a stable coin like USDC or USDT and generate the current 10% yield. With a 10% return per year, you could reduce the required stack from €1.15M to just €636k. This makes the goal a lot more achievable, but then you could miss out on the future growth of Ethereum.
Another option, instead of just relying on the staking income from your crypto portfolio, you could slowly also sell some of your ETH as it increases in value against fiat. In the example above, we saw that in 1 year, the value of Euros in ETH that I need each month went from 3,5ETH to just 2ETH per month. That means, once my ETH stack is big enough, it should have enough momentum to keep growing and I can also take half of that growth out to live on each month.
As an example, If I have saved up €100k of ETH, the mean average return of ETH is currently around 195%, which means that my €100k of ETH would grow to €295k of ETH valued in fiat. I could then use my 5,5% returns above (or more if you can find a better and safer home for your ETH) and the rest easily fund with the growth in ETH.
These current high returns of ETH are of course not guaranteed into the future, but it could mean that I need less than 436ETH in order to reach my goal if ETH continues to outgrow fiat at a high enough rate.
What crypto target do you have and how do you plan to reach it?
Thanks for reading.
Resources:
https://www.upmyinterest.com/fund
https://www.youtube.com/watch