How do you ride the unstoppable wave of Bitcoin and crypto without betting the house, suffering through brutal halving cycles, or constantly checking charts for the next price swing? And how do you make your holdings work for you—earning steady income—without diving into the complexities of staking, security, or dodging the endless traps set by scammers and rug-pullers?
Let’s break it down.
Crypto Income: The Ultimate Passive Play with LFGY, MSTY, STRK, STRF, and YMAG
Introduction
Who says crypto investing has to be all about wild price swings and diamond hands? What if you could generate steady income while still riding the blockchain wave? Enter LFGY, MSTY, STRK, STRF, and YMAG—a mix of ETFs, preferred stocks, and option-based funds that let you earn while you hold.
In this article, we’ll explore how each of these assets works, compare their benefits and risks, and build a hypothetical portfolio to see how much passive income you could rake in. Spoiler alert: it’s looking pretty sweet.
Meet the Crypto Income Squad
LFGY (YieldMax Crypto Industry & Tech Portfolio Option Income ETF)
LFGY is an ETF that invests in crypto-related companies and uses covered call options to generate income. Instead of holding Bitcoin directly, it gives exposure to firms driving the blockchain revolution.
Benefits: Weekly income distributions, exposure to crypto industry leaders, and reduced direct crypto volatility.
Risks: Capped upside potential, high turnover, and regulatory risks affecting crypto firms.
MSTY (MicroStrategy Covered Call ETF)
MSTY is an actively managed ETF that sells covered calls on MicroStrategy (MSTR)—a company famous for holding massive amounts of Bitcoin. This strategy generates high option premiums, turning Bitcoin’s volatility into income.
Benefits: Huge yield potential (140% trailing twelve-month yield), exposure to Bitcoin without direct ownership, and weekly payouts.
Risks: NAV erosion over time, dependency on Bitcoin volatility, and potential missed upside if Bitcoin rallies.
STRK (MicroStrategy’s Strike Preferred Stock)
STRK is a preferred stock issued by MicroStrategy, offering an 8% cumulative dividend. It provides a fixed income stream while maintaining exposure to Bitcoin through MicroStrategy’s holdings.
Benefits: Fixed dividend payments, lower volatility compared to common stock, and indirect Bitcoin exposure.
Risks: No maturity date, potential dividend delays, and sensitivity to MicroStrategy’s financial health.
STRF (Perpetual Preferred Stock with Fixed 10% Dividend)
STRF is a perpetual preferred stock backed by major financial institutions, offering a 10% fixed dividend. It is designed for long-term holders seeking stable income.
Benefits: High fixed dividend, institutional backing, and redemption flexibility.
Risks: Market volatility, regulatory uncertainties, and potential dividend disruptions.
YMAG (YieldMax Magnificent 7 Fund of Option Income ETFs)
YMAG is a fund of funds that invests in YieldMax ETFs, which use options strategies to generate income from the Magnificent 7 tech stocks—many of which are deeply involved in crypto, blockchain, and AI.
Benefits: High yield potential, diversified exposure to multiple assets, and weekly income distributions.
Risks: Limited upside due to capped gains, high volatility, and potential losses if underlying assets decline.
Hypothetical Portfolio and Income Analysis
Let’s build a $100,000 portfolio across all five assets:
Total Return Analysis
Assuming reinvestment of income at the same yield rates:
With reinvesting: The portfolio grows at an annualized rate of 40.75%, compounding over time.
Without reinvesting: The investor receives $40,352 annually in passive income while maintaining the principal investment.
Conclusion
LFGY, MSTY, STRK, STRF, and YMAG offer a potentially powerful mix of crypto-related income strategies. MSTY and LFGY provide high-yield ETF plays, STRK and STRF offer fixed dividends, and YMAG adds diversified tech exposure of leading tech companies positioned to benefit the most from advances in crypto, blockchain and artificial intellgence (AI) . A balanced portfolio combining all five can generate massive monthly income while maintaining exposure to crypto markets.
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*Please note that nothing here is financial advice. It is financial education shared to spur further inquiry and due diligence into these emerging asset classes and the new investing tools now available to both create a crypto-related stream of income, and to participate in this emerging phenomena with potentially less volatility.*
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Yeah, the following chart is a little fuzzy. But all you have to know is that the orange box represents bitcoin, and each year it appears on top means that bitcoin has beaten the pants off every other asset class available. That’s noteworthy.
So, are you ready to turn your crypto holdings into a cash-generating machine? 🚀💰
Here’s an idea:
You could start in your regular investment account (or brokerage IRA) with perhaps $50 into each holding mentioned above. Set the monthly (and in some cases WEEKLY income/dividends to “reinvest”, and then consider adding more on occasional dips in the share price.
OR, you could simply let the income collect in high yield money market for a year or two until you have “self insured” your principle (recieved as much income as you invested). Then let the original holdings reinvest for the forseable future, knowing you already took your (initial) investment off the table.
(In no case should you copy the author and leverage the entire operation, adding a technical analysis overlay for trimming profits on highs and adding like a mad dog on dips)
Bon Voyage!
Didn't expect 2 hours of spiritual journey, but this is one of the best "investing" interviews I've heard in a long time.
Good stuff:
https://youtu.be/IUI5MEskL1I
Heads up. That's a double in four days in stable coin company common stock ticker CRCL. Consider taking half off the table.
Good times!!!!!