Defi Staking vs Turo (new side hustles)

[Matt R.]

Way off REI topic:

I thought since these made around the same mula per mo for me, they were something worth a compare and contrast and share with any bp side hustlers.

This is just a quick and dirty comparison after having done both. 

Turo is a car rentals app like airbnb for cars. Defi staking is decentralized finance app like an interest earning time deposit for crypto.

Turo was really good however you are running a car rental business which will require many what I call touches. Touches are the administrative part and or physical touches, cleaning and pick up drop offs. Turo or any business has expenses, ( more touches) insurance etc or anytime you have you cut a check to maintain the business. 

Now turo BP ad claims you can make 50k annual with 5 cars. I guess that is possible but understand that might include a decent amount of time, I will guess 10 hours min a week. When I did turo I had two cheap cars, Prius and another which cleared after everything(deappreciation) $400 per month per car, which is definitely on the low end but I only had 14k funds tied up here. I would say time wise it was around 4 hours a week for 2 cars. 

The biggest hidden expense with turo to factor is value loss on car with miles and or some wear and tear cost. Most warranties are void if used as rental. 

Ok so now on to Defi Staking. In nut a shell you are getting paid to essentially not sell your crypto deposit. These pay interest and rates vary from 2% to 92% apy. We will use the same 14k and use the highest % interest available top 40 crypto which so far pays about the same $800 per mo as turo did. The biggest difference for me is Defi staking requires about 99% less time or touches and there are no expenses. 

The risks: I would consider the risks about equal. This could change however with defi you could exit back to usd in about 30 secs. Turo will take longer to exit or days to weeks perhaps. And another note on defi risk, if you did not know what you are doing, you could make a mistake and lose it all. I guess thats also possible with car rentals but might take more than one mistake.

Would I do turo again? It is a maybe but it would be for trucks or vans or trailers etc. Defi staking or Cefi I can see using for years or even decades is possible. 

Let me know your thoughts or questions. Especially the turo folks who I know can average a lot more using a lease finance strategy or other car class etc where I was cash and carry only. 

Good luck side hustlers!