We have reached a point in history where crypto is one of the most talked-about subjects on the internet. But how many people know what they are talking about? Do you know the prevailing cryptocurrency prices?
Why is it important that you understand the fundamentals of crypto? Because if you don’t, when something happens in the cryptocurrency markets and your investments take a hit, you won’t understand why. You will just try to sell off as fast as possible before everyone else does.
And in doing so, you may end up losing more cryptocurrency value than what would’ve happened had you known what was going on in the first place!
In this guide, I will try my best to explain everything in detail so that by the time we reach our conclusion. There should be no doubt left in your mind whether or not it’s worth investing in cryptocurrencies or not.
Become Financially Independent With Cryptos
Is it possible to become financially independent with cryptos?
Well, the answer is yes and no. Before we get into all of that, let’s define what financial independence means for you. Financial independence is when you have enough passive income coming in from your assets, that you don’t need an active job or career anymore. You can live off of this passive income and continue to save/invest money at the same time.
This is where cryptocurrencies come in: they are a potential source of income (mining), savings (HODLing), and investment (trading).
Cryptocurrencies can be used as a medium of exchange for goods and services on the internet as well with certain stores accepting cryptocurrency as payment options like Overstock which has been accepting Bitcoin payments since 2014!
So what does this mean? Well if you have any amount that is more than enough to sustain yourself financially then investing your extra cash into some crypto will help boost up those gains even more! And if not? Well, then there’s always mining!
What Are Cryptos?
Many people have heard of cryptos, but they don’t know what they are. Cryptos are digital assets that live on blockchain technology, the same kind of technology that the popular cryptocurrency Bitcoin gets built upon.
Cryptos got designed to get used as currency or investment vehicles, and there are many different kinds with varying properties depending on how their creators set up each crypto’s rules.
Crypto is short for cryptocurrency; in other words, it’s a type of money that exists only online and does not get regulated by any one country or a central authority like a bank. When you buy some cryptos through an exchange like OKX, Coinbase Pro (or GDAX), you’re buying them from another person who has posted them on an exchange. Not from someone who makes coins themselves!
The price of these “coins” fluctuates based on supply and demand (like stocks). As more people want to own these digital assets because they think they’ll appreciate them over time. Supply goes down while demand increases making prices go up!
Let’s say John decides he wants to invest $100 into Bitcoin right now so he buys 100 units for $10/each which would net him a 10% return every year if everything went according to plan.
Now let’s say John sold those 100 Bitcoins at $11/each after 3 years: his initial investment would net him back 1% per month ($1 profit) x 30 months = $300 after just two years and then multiply that times ten years = over $12K profit!!
Why Have Cryptos Become So Popular?
Why have cryptos become so popular in these last few years?
Cryptocurrencies are very easy to use, trade, and spend. They move money quickly and can get used to shopping online.
Most people in the world now use them as a way of storing their money, buying things online, or trading on exchanges. Many people are even using them as an investment vehicle because they have seen how well they have performed over the last few years. And want to take advantage of this opportunity without having to learn about investing or use a traditional currency that takes time to transfer between countries etc.
Is Crypto the Future of Money?
Cryptos are not a fad. They’re here to stay. Cryptos are a big industry that’s not going away any time soon, so it’s worth looking into them for the future of your money.
Cryptos use encryption and cryptography to secure transactions, they are incredibly secure compared to other types of financial institutions (like banks).
You can save money by using cryptos instead of traditional banking or payment methods such as credit cards because they’re cheaper and way more convenient! Plus they’re safer than carrying cash around in your wallet all day every day too. No more worrying about getting mugged or pickpocketed while walking down the street because there’s no cash on you anymore! Just remember never to keep all your assets in one place if possible.
There are many ways crypto investing can help make you financially independent faster than any other method out there right now if done correctly:
For example, in some countries like Japan where deflation has been around since WWII ended due to inflationary policies coming off their war-time hyperinflationary economic measures, prices still haven’t gone up much despite having returned home from overseas service during WW1/2. So people nowadays spend less money each year relative dollar amount spent per year over time means fewer savings being made available for retirement purposes.
Therefore, leaving them vulnerable long term should something happen unexpectedly such as unexpected medical bills, etc. We could talk about how inflation affects wealth creation but that would take too long.
Accessibility and Popularity
Cryptocurrencies are a new and exciting form of currency that has been around for less than 10 years. The first cryptocurrency was bitcoin, which got released in 2009. Since then, the industry has grown to include over 2,000 different types of cryptocurrencies. That can get used in transactions all over the world and they’re not going anywhere anytime soon!
The best thing about cryptos is that they don’t require any government oversight or regulation; this means no one can tell you what you can or cannot do with your money—or how much money you should save in your bank account instead of buying cryptocurrencies. However, this also means it’s risky to invest in cryptos if you don’t fully understand their potential risks and rewards (more on these later).
While most people think of crypto as an investment strategy rather than an actual currency like dollars or euros, it’s both! Cryptos got created as alternative currencies meant to serve as replacements for traditional ones when financial institutions failed during recession periods like the 2008/2009 Great Recession (that’s why Bitcoin got invented).
Now they get used in both forms: when someone wants to buy something online using credit card debt but doesn’t have enough funds available right now. They’ll use PayPal instead!