Cryptocurrency and wealth are two ideas that go hand in hand, like apples and oranges. But, hang on, that doesn’t make sense, right? If you answered yes, you would be correct. Cryptocurrency does not equal wealth and vice versa. Despite the immense amount of excitement and discussion surrounding crypto, just because one owns a digital asset, does not ensure an overabundance of money. However, there is a good reason for all the hullabaloo with crypto, and it has to do with wealth – it is entirely possible to build wealth if you play your cards right. Some even believe cryptocurrency can go a step further. Joe Evans, a novelist, and writer on crypto topics, spoke to this, “The blockchain technology that underlies Bitcoin is a major technical breakthrough that could, in time, revolutionize both the Internet and the financial industry as we know them, and the first steps of that potential revolution are now under way.”
As an individual, you and cryptocurrency do not hold power to change the financial industry. But you and cryptocurrency together can build personal wealth. Examples of how to do so from people with experience should help you get started on this journey.
The tried and true
Loic Claveau, CMO at TakeUs, a brand offering collateral-free NFT rental and mortgage platform. They suggest the well-known practice of buying cryptocurrency and holding it in hopes of long-term growth.
“Every kid’s first introduction to the stock market seems to be the idea of buying a stock and keeping it until well into retirement when it’s worth a small fortune. Admittedly, this is more than likely a pipe dream. But it’s not the most unheard-of thing to make money by simply sitting on ownership of an item that constantly fluctuates. Moreover, the popularity of crypto supports the thought that one day, it will be worth that small fortune. Just look at how far Bitcoin has come in the last ten years. Who is to say that cryptocurrency or another won’t gradually rise to financial prominence in the same way?”
Like with stocks, there are people out there who make a living moving cryptocurrency around on an incredibly regular basis. VITAL is a business providing credit cards that pays you to share and spend responsibly. Their CEO, Chris Bridges, advises others to investigate this route.
“The rapid surge of the internet in its early days led to everyone and their brother trying their hand at being a day trader. The same type of wave was swept across the internet as crypto has grown. No matter how you slice it, there is a demand for crypto, and you can absolutely use that to your advantage by trading different coins. Don’t just jump off the diving board headlong without having done your research – throwing your money at a cryptocurrency you don’t understand is equivalent to walking into a casino. Know what you’re doing and why and hopefully, that wealth will start to build.”
Spread yourself out
SaneBox specializes in email management. Their Head of Partnerships, Thomas Yuan, considers it critical to diversify any currently available wealth into a variety of crypto endeavors.
“For whatever reason, people nowadays have confused the term wealth with getting rich quick. Not only is this incorrect thinking, but it is also dangerous. There are endless stories online of people who took basically everything they had and threw it into a single virtual entity only to see its value plummet. The power of the fear of missing out is strong. But regret is stronger, so you should do all you can to avoid it. Practically, a helpful method worth following is spreading yourself out, so to speak, across more than a handful of unique cryptocurrencies. This way, if one of them tanks, you’ve eliminated the potential of losing everything.”
Tony Chan is the CEO and Co-founder of CloudForecast, a brand offering AWS cost monitoring and management tools. He cautions others not to overlook the possibilities surrounding newly created crypto.
“The beauty of the world of crypto is its ever-evolving nature. Obviously, currencies change in value and functionality but there’s more to it than that. Daily, fresh and innovative currencies are appearing online, each one as appealing as the last. While it’s important to note the higher risk here because of the newness of the currencies, you should also know that many of them are free upon release. In the crypto industry, these are known as airdrop releases. Something like this could be a wonderful opportunity for anyone willing to do a little digging.”
Lending or staking
Simply put, there is a depth to crypto that many don’t venture into. AdQuick is a business providing billboards and out-of-home (OOH) advertising. Their VP of Marketing, Lina Miranda, proposes taking the time to understand this more advanced aspect of the blockchain.
“When it comes to the US dollar, there are institutions such as the government or banks which routinely validate the authenticity of the physical currency. This exists with blockchain technology as well. You should think of crypto as a network because that’s what it is. Spread throughout this network are different points which confirm that the crypto in question is indeed valid. This is called staking and is only possible if you own crypto. In return, you’ll receive something like interest payments. The whole process is a little more complicated than other crypto, but it is one of the less engaged approaches to making money in crypto.”
Look into mining
Fighting for You specializes in personal injury law firms. Their CMO, Max Schwartzapfel, believes placing oneself at the origin point of cryptocurrencies could prove fruitful.
“Crypto was built with the everyday person in mind. From there, creative people have only taken that ideal and run with it. Have you ever wanted to be the party responsible for printing money? Traditionally, this honor has been kept by governments. Now, through computers, anyone who desires to help create crypto can do that. Essentially, your computer would stay on while it participated in the printing of digital coins. Across the globe, there are warehouses full of computers performing the same task. While you’ll never meet their productivity levels, you can start slowly accumulating wealth.”
Realistically, there are more ways than you can shake a stick at to build wealth through crypto. But the flip side is the large potential for losing wealth. Peter Thiel, the co-founder of PayPal, painted a word picture of this, “I do think bitcoin is the first [encrypted money] that has the potential to do something like change the world.
You may also like: Things For Businesses To Know About Cryptocurrency
Image source: Shutterstock.com