Short answer: yes. Long answer: it depends.
My biggest crypto passive income sources are ‘beginner friendly'. Yet two of them would be shunned by a lot of ‘crypto enthusiasts'; mainly those who are either crypto-purists or those who prefer to gamble on shitcoins and memes (and gamblers very often loose*).
So yes, a ‘crypto newbie' with no prior experience definitely has potential to earn more than a ‘crypto enthusiast'.
* I'm not saying all meme/shitcoin traders are gamblers; a massive amount of money can be made trading these coins. Some traders do very well through sound research. Others do well out of luck, and others loose everything either by being scammed or just not researching fully. And yes, I realise purchasing any cryptocurrency is highly speculative, however shitcoins and memes are amongst the most risky in more ways than one.
How is this possible?
Mainly, because new people tend to be more cautious and take less risks. They are also not crypto-purists (by this I mean those who will only consider ‘pure' crypto opportunities).
A ‘newbie' likely won't venture into the deeper, darker world of crypto for some time and they will stick with larger caps / blue chips, such as Bitcoin and Ethereum, rarely venturing outside of the Top 20 or even into DeFi.
They don't ‘trade'. They don't get caught up in moonboys shilling the latest ‘to tha moon' 100X shitcoin or get caught up in the ‘thrill' of participating in a ‘pump and dump'.
They also probably won't venture into other low-cap / micro-cap coins that are ultimately very risky. Nor will they be cocky or arrogant.
The above are all things that crypto enthusiasts are more likely to do. And yes, I've done them too. And I sometimes still do 😉
It amazes me the number of people in crypto who are happy to gamble $5,000 on some ‘100X' shitcoin meme, yet quick to label other passive income opportunities as ‘too risky' or a scam 🙄
I'd describe myself as a crypto enthusiast.
I own a wide number of coins/tokens, I use DeFi a lot, I participate in farms, LPs and staking. I bridge tokens back and forth across the major protocols, I own a hardware wallet and nodes. Most of my assets are cryptos and most of my income is through crypto-related opportunities. Yes; I'm bullish on blockchain.
However, I'm not a purist.
My top three passive income streams are not all ‘purist' in terms of crypto. Needless to say, I also have many other ‘pure crypto' plays.
For example, YieldNodes would be described as ‘beginner-friendly'. Yet a lot of crypto purists would dismiss it as it's not directly buying tokens and staking/pooling/nodes etc.
Something like Yieldnodes is much more likely to be dismissed by crypto ‘purists' who are uninterested (which is fair enough; when you geek, you geek!) and those who prefer a gamble on the next ‘100X' moonshot shitcoin (which in my opinion is, well….hmmmm; generally less ‘geek'!).
And no, I'm not saying any of my top income streams are without risk; I just feel that the risk-reward trade-off is much better with these opportunities than with trading low-caps or shitcoins (something only those more experienced in crypo can really do well — and yes, there are profits to be made if you are disciplined and can set emotion to one site, which most of us aren't!).
So there you have it – that's a few reasons why I think it is possible for crypto newbies/beginners to see better results than some who have more experience and dabble in riskier territories.
Always do your own research! And if your new to crypto DYOR is one term you will hear very often (Do Your Own Research), alongside NFA (Not Financial Advice).
What is shitcoin/meme/moonboi/moonshot…etc?
For the newbies, here's brief outline of some for the crypto terminology used in this post.
- Micro or Low-Cap: Coins/tokens with tiny market cap. For example, BTC – Bitcoin at #1 is worth approx $750 Billion, CUMMIES – CumRocket (yes; that's a ‘real' name!) position is around #500 and worth $35 Million, whilst poor little EDOGE – ElonDoge comes in at around #1600 and has a market cap of just $1.5M.
- Shiller: Someone who ‘shills' a particular crypto by promoting it heavily online. Very often, shitcoins will be shilled for personal gain by ‘influencers' and moonboys.
- Shitcoin: A crypto with no utility or unique features – something that in theory should be of zero value. Often created solely to make money for the creators and its early shillers, whilst thousands loose out to ‘pump and dumps'. Characteristics include using similar names to popular coins, names similar to influencers or joke names. Also used to describe crypto that has become worthless.
- Meme coin: In most cases, this is basically a shitcoin that has a stupid name or one that plays on something popular. It has often gained traction due to influences. Rarely has any “real” value (although not true for all). The biggest meme is DOGE – Dogecoin. It's actually one of the oldest cryptocurrencies and was created in 2013 as a joke. People make and loose fortunes on meme coins. There are many scams.
- Moonshot: A crypto that is said have the imminent potential to explode eg go 100X in value. Mooboi shillers love talking Moonshots. Unsurprisingly there is a MOONSHOT shitcoin meme. It was created in May 2021, was pumped and dumped and is now worthless.
- Moonboys & Moonbois: Shillers that shout “to tha moon” or ask “when moon?” and believe the shitcoin they are shilling will soon land them a Lambo.
- Pump and Dump: A co-ordinated attempt to grossly inflate the price of a micro or low-cap crypto for a short period of time so profit can be taken. This is often done via influencers, moonboys and shillers who participate in group chats to arrange the time and date. Other traders see the price going up, buy in. The coin is quickly dumped, quite literally leaving them holding a bag of shit.
- DeFi: Decentralised Finance – allows people to participate in regular financial services with no middlemen. Everything is managed by smart contracts eg. trading or swapping crypto, getting a loan, lending etc. DeFi is awesome (and🤞 the future!) however there is the risk of bugs in the smart contract code being exploited, or unscrupulous scammers inserting code designed to steal your coins
- DEX: A decentralised exchange used to manage the swapping of crypto. Two of the most popular are Uniswap and PancakeSwap (a centralised exchange such as Coinbase or Binance is often referred to as a CEX). They make use of farms, staking and LP (liquidity pools) to provide service. There are lots of DEXs popping up, many are edited clones that are unaudited and can be risky to use.
Yes, I feel crypto newbies do have a good fair chance of beating some crypto-enthusiasts because;
- They are generally more cautious and diligent
- They don't ‘trade' or swap coins frivolously
- They don't get caught up in moonboy 100X shills
- They don't participate in ‘pump n dump's
- They don't trade and swap on risky DEXs
- They don't buy micro-micro, micro or low-cap coins
- They are not crypto ‘purists' who won't consider other opportunities
- I do my best to make sure they are aware of how crypto scammers operate and how to avoid them 😡
Much good in the world to be done…
Godspeed to you!
Disclaimer: As with everything on this site, this article is for informational purposes only and is not investment advice. I simply share my experiences and my opinions for information. I am not a financial adviser and I am not providing investment advice. Cryptocurrency is high risk and these opportunities exist in new, high risk and unregulated markets. Please do your own research and due diligence; do not blindly follow anyone!