Financial freedom lets individuals live life on their terms. Apart from having complete control over your finances, a stable cash flow must be your goal, too, like everyone else in the world. But achieving financial freedom is not an easy job; it takes time and discipline. One needs to take care of so many aspects such as making goal-based investment and profit-oriented strategies etc.
In the early days, it seemed almost unachievable. But now, the development of the internet and other web-based technologies like cryptocurrency make it easier to attain one’s financial goal.
One of the most popular and widespread cryptocurrencies is Bitcoin, which receives excellent reception from techies, especially our GenZ community. Cryptocurrency not only offers real-world applications but now people can also achieve financial freedom with it.
What is the importance of cryptocurrency trading?
As per the data obtained from a 2017 report, surprisingly, around 1.7 billion, the global public has no association with banking organizations or hasn’t opened their bank accounts yet.
In this scenario, blockchain and cryptocurrency can act as a bridge that connects the unbanked population to financial sectors.
As per the survey, conventional financial institutions mostly fail to fulfil the needs of the public at the time of cultural or political uncertainty. On the other hand, blockchain and cryptocurrency networks show no difference in their services during such times. Individuals can use it as a payment method as well as earn more income through it.
Though governments worldwide have distinct opinions on how to implement Bitcoin and other cryptocurrencies under their regulations, cryptocurrency remains unbothered from such debates. In fact, anyone can participate in this new way of trading via their cell phone and good internet.
Another fantastic characteristic of cryptocurrency is that users can trade them globally without boundaries and geographical locations. This practice is definitely not available in Fiat currency. Plus, with crypto trading, individuals get to perform exchanges at a fast rate with minimum cost. The decentralization and peer to peer network used in cryptocurrency and blockchain remove any extra tax and need of a negotiator.
Here are a few methods to achieve financial freedom with cryptocurrency:
- You can buy and hold cryptocurrency
A decade ago, since the introduction of Bitcoin into the digital trading world, tones of other cryptos were gaining recognition and an increase in worth. Despite the constant uncertainty surrounding crypto market prices are only surging. Of course, the market has seen some dips over the years, but the way it gets back is impressive. The market cap value of top crypto coins such as ETH, BTC and Litecoin is thriving in billions.
For beginners, buying a few crypto coins and holding them for a while can be a good approach for goal-based investment. You don’t need any permission or go through a tiring verification process to create your crypto wallet. You need to begin with the crypto buying and holding process: a smartphone or PC, an active crypto wallet, and a good internet connection. Within minutes you’ll be making your first trade.
- You can try day trading
Cryptocurrency trading is basically based on decentralized exchanges, which are identical to processes of global equity markets. Individuals with excellent technical analysis skills can use their knowledge for the crypto trading market. This practice is known as day trading. Remember, this strategy involves risk due to the unstable nature of the market.
- Join a cryptocurrency mining pool
Though there is high competition in crypto mining, plus many big mining firms are already thriving in the field, one can connect with a mining pool. This pool comprises a community of miners who work as a team and equally distribute the profits. This practice is best to boost mining speed, overcome difficulties and attract remarkable gains.
With the increase in mining difficulty, most miners now are going into such pools. Indeed, you won’t receive the maximum profit as it needs to be shared among other members. Yet, teamwork leads to faster hashing computation which is enough to snatch rewards from other competitors.
- Using Staking
Many cryptocurrencies use staking as a method to verify exchanges. This method permits crypto holders to receive a certain amount of interest as a reward for contributing to the network. In this method, users need to hold up a specific amount of tokens in a live wallet. With the increase in the amount of staked tokens, the value of the reward gets bigger too! This strategy is better than mining for individuals who want to start with a pocket-friendly investment. There is no requirement to purchase costly supercomputers.
- Use cryptocurrency Master Nodes
The use of cryptocurrency master nodes comes among the best approaches for making money from cryptocurrency.
Most cryptocurrency platforms outsource master node operators. They, in general, get paid for offering services like providing a timely record of cryptocurrencies’ activities on blockchain networks. This process is hard to perform as one needs to retain a nominal coin amount under the master nodes. Hence, outsourcing is more convenient.
- Initial Coin Offerings
Though cryptocurrency and blockchain seem to dominate the world, we cannot deny that they are still in their developing phase; hence crypto developers and blockchain startups are putting their all efforts to generate real-world use cases and applications for cryptocurrencies. You can join in with them by becoming an investor for their projects. For this, you need to participate in the initial coin offering. The ICO is accessible for public investment. Most big blockchain platforms have used their strategy and have been successful in the process. However, we advise you to thoroughly research the project you invest in to eliminate the risks and disputes.
These are some of how individuals can have financial freedom using cryptocurrency. We advise you to take help from a cryptocurrency expert before making any decision about investing your time and money in such methods.
The growth of blockchain technology and cryptocurrencies and their adoption in the real world will only tell us about the future of these innovations.
Until now, we have seen supporters as well as non-supporters of these advancements. But no one can deny that if these technologies are used correctly, they can change the functionality of global industries and our day-to-day life activities.