STOP! Your Passive DRIP Riches Are Only On Paper Unless You Do This One Thing…
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STOP! Your Passive DRIP Riches Are Only On Paper Unless You Do This One Thing…

I have read a lot of stories about the passive income people are receiving from DRIP including articles that I, myself, have written. All…

I have read a lot of stories about the passive income people are receiving from DRIP including articles that I, myself, have written. All of them boast huge returns via compounding 1% a day. One of three things is going to happen daily for you. You will either choose to compound the return (hydration), claim that 1% interest, or do nothing.

Photo by Sandeep Swarnkar — STOP! You Must Claim To Realize Gains

Don’t worry though. This is by design. When you initially put your money into DRIP you will buy it on the Swap page. Once you have DRIP in your wallet, you head over to the Fountain page and stake that DRIP. When you do that, all the DRIP you had gets removed and goes back into the supply. You are now locked into a ride that doesn’t end for a while with essentially an IOU ticket from the DRIP Network.

Barring any kind of positive price action on your DRIP, you would need 100 days of straight claiming in order to get back your original deposit. But probably 99.92% (made that up) of DRIP Investors are there to grow their quantity of DRIP. So what to do?

At some point, you are going to want to start claiming in order to get your original stake back so everything you receive after that is just gravy. The question is when?

I am in crypto to make money and I do take calculated risks that have paid off very well but I also have lost money. That is the reality of the market right now.

So let’s walk through a couple of scenarios. Let’s say I bought $3000 dollars worth of DRIP at today’s price of $68. I will receive 44 DRIP to start. We will ignore tax and gas fees for this thought exercise.

Scenario #1: Get Back Original Stake ASAP

If I start just claiming 1% per day, I will be able to get roughly $30 worth of DRIP back every day. At that rate, to get $3,000 back (original stake) takes me 100 days. So April 28th I will be in the clear with my original stake back in hand.

Scenario #2: Stake and Claim Every Other Day

If I go to an every other day hydrate/claim pattern, it will take me 163 days to get back the original stake but by that time the daily price of DRIP I start receiving is $65 dollars a day.

Scenario #3: Stake For 200 Days then claim till $3000 is gained

The 200-day mark is August 6th. At that point in time, the 1% DRIP you receive daily will be worth $200 or so. Now go on a 15 day claiming binge to get the original capital back. Then go to an alternating hydrate/claim schedule that starts at $200 per day and slowly moves up.

Scenario #4 through infinity: The possibilities are endless

By now, I think you get the idea. The way you start hydrating and claiming is going to become something personal to you. Until you take your 1% per day and convert it into a stable coin or fiat, you are not making anything in DRIP…never forget that.

DRIP is a DeFi project that can provide passive income. You purchase your DRIP and deposit it into the faucet (where it is locked), then the faucet pays you 1% per day every single day in new DRIP tokens. You can choose to Hydrate (compound) your daily 1% back into your deposit so you receive more tomorrow, or you can choose to claim your earnings back out. That is an extremely simplified version but hits the highlights.

Source: https://cryptozoa.com/stop-your-passive-drip-riches-are-only-on-paper-unless-you-do-this-one-thing-f2f416e0e37a?source=rss——cryptocurrency-5

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