Passive income. 2 very motivating and yet terrifying words. Who doesn't want a source of income that requires little to no work at all. 

There are plenty of offers out there for a chance at passive income using crypto. If you see these and are not thinking to yourself **"What's the catch?"** then you are not thinking.

Every investment should have risk. Every risk worth taking will have a worth while reward. It is as simple as that. Risk is an inherent part of any business plan, and any passive income plan should be treated as such. 

Just as any business must weigh the risk versus reward, so must anyone seriously contemplating staking thier crypto for passive income. 

 My main issue with many passive income opportunities are basically 2 fold: 

**Is it a scam?**

**If it's not a scam, does it favor the whales?**

Scams are common place throughout the cryptosphere. You can't look for more then a few minutes without running into a story of a crypto scam, and lets face it, with the relative yougness of the cryptoverse, it is no surprise. (Anyone remember the wild west days of the internet? where scams were all over and people fell for them? - Hell people still do!)

Hell I got scammed. Remember a little thing called LexiLTC? That nice little website where you could gain returns on LTC? I paid in 1 LTC, made back 0.3LTC before they scammed out. Thats a 70% loss. Could it have played out in my favor? Yes. If I joined at the very beginning i could have made a profit, but I was skeptical at first. Which was a smart thing, but the FOMO got to me. I paid for that. **LESSON LEARNED**

Then theres the passive income promoted by the whales. You know where you read about or watch someone use a Dapp or platform to make passive gains on a daily basis. Yeah those guys are making money from you while you miss out, or they pull out right when you get in and all the money leaves. Whales run crypto. Just my opinion, but maybe also fact. 

Maybe the cryptoverse will one day equal out, but I doubt that. There will always be whales to feed on us minnows, but that doesn't mean we minnows can't make a passive income ourselves. 

     
**MY PASSIVE PLAN**

How am I gaining passive income? After doing a bit of research I found that there are many ways to do so, but how could I make it work for me? I'm still not sure to be honest, but im going to try.  

**WARNING: Please do your own research and try this plan at your own risk. I am not a financial advisor, just a crypto-enthusiast trying to make something extra on the side!**


   **CTO**

![02zox9qvzv.jpg](https://img.esteem.ws/02zox9qvzv.jpg)
    

Now I know some may have heard of Cloud Token wallet. If not don't worry, I will try to fill you in. 

Cloud Token Wallet is an app for iOS and Android that allows you to hold crypto as well as invest your crypto into a trading bot that pays back a percentage every day. Sounds good right? Of course it does. This app also uses Multi-level Marketing (MLM) to reward users who bring in more users with there referral code. Still sounds good right? 

 Users who invest in the trading bot, called JARVIS, are paid out in the native currency, Cloudtoken or CTO. Good news the price of CTO can go up with the amount of people and crypto invested in JARVIS. CTO prices started at $0.30 cents and are currently work $0.4840. 

Since Cloud Token Wallet has been released  there have been many updates to the app and system. The company has added more coins to deposit as well as added an atomic swap function. So far the company has been talking to its user base through social media on the regular, always keeping them informed. 

Seems to good to be true so . . .

**WHAT'S THE CATCH?**

 There are some cons with this app as well.

1. You cannot withdraw your funds without CTO. You need CTO, which means you must invest in JARVIS to be able to make a withdrawl. The fee is small but if you dont invest you can't take out your funds.

2. To gain anything from the MLM side you need a minimum investment that is equal to $500 (I don't know about any of you but that is steep for me). 

3. Your investment also rides the crypto wave. If the market dumps you make less. So in Reality you need to keep more invested in JARVIS just incase you go below $500 to maintain your rewards. 

4. Sometimes the system gets bogged down and payouts can be slow. This is normal for may crypto currencies. My experience is that anytime BTC dumps users sell off CTO causing a slower network. 

5. And lastly, only one coin in the app provides you with the private key to your wallet (ETH). I know thats an instant turn off for many people. 

**The Plan**

With Cloud Token you don't have to place buy in the $500 minimum at once, I started with $50, and DCA'd in on payday whenever I could. Now a $50 dollar investment doesnt get you much , I was making like 0.2 CTO ($0.09) a day, but it was a start. Heres is my current holdings :

![Screenshot_20190831-231102.jpg](https://cdn.steemitimages.com/DQmRJwTZreo8oH34BQ8xaXwgDHMH4qsrUkU6opMVKC7MqzV/Screenshot_20190831-231102.jpg)

With 1.3 ETH I make about 1.06 CTO a day ( with current prices) or roughly  $0.50, or approx. $15 a month. Not too shabby in my opinion. 

Every 30 days I convert my CTO into ETH and reinvest ( I use ETH because I have my private key) and then also buy ETH with fiat when I can and put that in. My goal? $600. But then what?

After I reach my goal I an on opening another wallet with  my own referral code. Why? Becuse the first level for the MLM side of the app is 100% of the CTO earnings. Thats right whatever you 1st level earns you earn the same exact amount. This means i can use both accounts to compound into the JARVIS trading. When both reach the same amount the first account will be making double while the second will make what my intial account made before I created it. (I know its a little complicated and time consuming).
  
Rinse and Repeat.

Why this approach? Well to be honest I am still thinking "Whats the catch?" Of course I could try to shill my referral out there but then what if they scam out? Yes I have made money off the app, but it is all locked into thier trading bot, simply put, I could still lose it all.

Do I think they will? Not anytime soon, but I am no Nostrodamus. 

Cloud Token has  just announced version 2.0 which will bring a new  way to earn CTO, a raffle type app as well as possible gambling, and more coins to deposit. So I don'tsee them going anywhere, and hopefully if they do I might have moved on. 

So what do you think stupid or nah? I'll admit it is a hell of a risk, but it could pay out handsomely. 

I haven't invested anything in CTO I cant afford to lose and if you do decide that it might be worth it give it a try, be safe. If not good on you my friend. Hope for the best, its all we can do sometimes. 

If you are interested please use caution, don't over extend yourself financially hoping for a big payout. Think about it, weigh the risk and make an informed decision.  

If your final answer is yes you will need a referral code to join. Im going to leave mine below if you would like, if not theres plenty of others out there just go look.

Referral code: 4904937546

Also if you are new to crypto and need a place to buy some ETH, or any crypto, why not try coinbase. Not the greatest exchange but its Newbie friendly ( and I think alot of us started there)!

Coinbase: https://bit.ly/2Lehac3

Either way,
Good luck!!