With Crypto you can often earn higher returns than with traditional investments. These returns often come with a much higher risk though and once you factor in losses, the returns can come out lower than a simple passive investment and you could have saved yourself all the work.
Sometimes though it is about the journey and learning about managing risk, so the work is worth it with the investment being in yourself and developing your investing experience. The goal is the hope of getting higher returns in the future.
The sweet spot for gaining high compounding returns is between 12-15%. With this rate of return, your capital starts to appreciate quite swiftly.
Therefore stablecoin returns of 19-20% are even better. This would allow you to reach a modest crypto income of 1ETH per month (~$3000) with just $180k.
To be able to save up $180k should be easily within most people's reach with some discipline and hard work. It is also a far easier goal than saving over $1m to get a passive income from dividend paying stocks between 3-4%.
How safe these investments are remains to be seen. The peg on these returns could fall and you could lose some of your capital. Alternatively, the yield could fall and you would need to re-evaluate your plan.
A typical stable coin return of 10% would require a capital of $360k to provide the same return of a 20% yielding investment.
Can these high yields last?
They are reflective of the risk, so most likely there also needs to be considered the likelihood of losses to the long term yield.
Losses are part of the investing game, so it's important to not put all your eggs in 1 basket. Diversification is key. You can recover from some losses, it is much harder to recover from a total wipeout.
With these high yields, you could be tempted to abandon the HODL strategy too. Why hodl when you can earn 20% already?
There it is important to weigh up your strategy with your goals. Possibly both will reach the same goal in the end, they just have different ways of getting there.