Everyone would love to get in on a short-term situation in which your wealth doubles, triples, or more. It happens, to a few that have really good timing, great intuition, or a lot of luck. While I am throwing the net out for a few projects that could earn me a lot of wealth in a short time, I am putting most of my efforts in long-term wealth accumulation. I believe that crypto may just be the place where that can happen.
For what it’s worth, 13% of Americans traded cryptocurrency this past year, according to a research group at the University of Chicago. The study also pointed out that 24% of Americans traded stocks. As expected, demographically, those who traded crypto were more culturally diverse and were younger on average than their stock trading counterparts (https://www.cnbc.com/2021/07/23/13percent-of-americans-traded-crypto-in-the-past-year-survey-finds.html).
These stats point to a few trending ideas:
Interest in crypto continues to grow and is here to stay.
The younger generation is leading the way in the world of crypto.
As the younger generation ages and accumulates more wealth, the amount of money as well as the number of Americans trading crypto will likely surpass the money traded as well as the number of people in traditional stocks.
Personally, I do not fit the demographics of many crypto traders. I am in my late 40’s. I have traded stocks for about 15 years. I am not a professional trader. I have other means of income. I have always been fairly conservative with my spending and have done my best to save. My wife and I were finally in a position last year to buy a vacation home. It’s a small condo at a nice ski resort. We rent it out most of the year, but get to enjoy it several times throughout the year.
I watched and observed Bitcoin from a distance for several years before I decided to get involved. Although I arrived somewhat late on the crypto scene, I am here to stay. Like many of you, after my first Bitcoin purchases, I bought Ether, and other altcoins. Now the whole world of crypto has been opened up to me.
I now have as many assets in crypto as I have in stocks. I earned more in crypto in my first three months of trading crypto than I did the last three years in stocks. I also lost, like many others, this spring. Unlike many that jumped ship, I am hodling and learning more. I am also planning to accumulate more during this sideways season. Technically, I have not lost. My dollar value is less than it was in crypto a few months ago, but my actual amount of crypto has increased. It will be exciting to watch when the next bull run begins.
I share these personal details to point out that even though the world of crypto is crowded with people under 35 years of age, there are a growing number of folks in their middle age that are here to stay. This adds stability and wealth to the current paradigm and helps to ensure a strong future.
My advice? If you make good decisions and earn money by any means (including crypto), save some of your earnings in a secure place that can earn compounded interest. Add more earnings over the years and watch your wealth accumulate. When you reach my age, you might just have enough to invest in a vacation home or better yet, retire. Think long term.
The Lynx
In this day and age, you must save so that you can save your future and not have to reach out to anyone, so I would say that