What does financial independence mean to you? There are various ways to define it; the most practical explanation of financial independence is the ability to cover living expenses without having to worry about whether your job will pay you enough. In other words, people who achieve financial independence can live off their assets; they can work if they choose to do so, but they do not depend on their salary. Many of these individuals are millionaires, but sizable wealth does not preclude financial independence; for example, a landlord may collect enough rental income to cover modest living expenses.
One of the best strategies to achieve financial independence is by accumulating assets that generate revenue or constantly appreciate in value. At this time, cryptocurrency certainly meets the criteria of an asset that can help individuals achieve financial independence. Satoshi Nakamoto, the secretive creator of Bitcoin, is believed to hold one million of these crypto-coins; considering that this digital currency reached a value of $10,000 in 2017, it can be safely assumed that Nakamoto is financially independent.
Making Money from Cryptocurrency
Leveraging the cryptocurrency market to create profits
Cryptocurrencies offer various paths to profit. The most popular method is acquisition; you can do this by opening an account at major exchanges such as Coinbase, GDAX, Poloniex, and Bittrex. Bitcoin is not the only digital currency to have skyrocketed; Ethereum, for example, has jumped from $7.98 to more than $450 since February 2017.
Once you have acquired cryptocurrency, you can let it sit and appreciate in your electronic wallet, or you can explore the world of currency trading for a more active, hands-on approach. As you learn more about cryptocurrencies, you may want to try your hand at mining, an economic activity that involves supporting the blockchain by providing computing resources to process transactions. Bitcoin mining has become difficult due to the complexity of the blockchain and the excessive resources required; however, other cryptocurrencies can be mined with less effort. Mining enables transactions and maintains the distributed ledger; your efforts are rewarded with newly minted cryptocurrency generated by complex encryption algorithms.
The Future of Cryptocurrency
Acquiring cryptocurrencies and securing your future
Cryptocurrency can be compared to precious metals such as gold and silver in the sense that many investors treat them as flight-to-safety assets or as a store of value instruments with great potential; however, it should be noted that digital currencies are 100 percent liquid and can be used to make payments and settle monetary transactions.
Bitcoin and other digital currencies could be your ticket to financial independence. To get started, research your options and open an account at the aforementioned exchanges.