Best Should I Invest In Crypto Currencies? Tips You Will Read This Year
Cryptocurrency has skyrocketed in popularity in recent months. Of course, bitcoin remains the most popular.
However, as the concept of digital currencies continues to permeate the public consciousness, some smaller cryptos are gaining traction as well.
But the most frequently asked question about cryptocurrency is why you should invest in it. What is the significance of BTC (Bitcoin)?
The primary reasons for trading and investing in the cryptocurrency space are (1) wealth creation and (2) wealth preservation—or retirement. I'll explain what I mean by both in more detail later.
#1 Wealth Creation
Some people want to make a lot of money with cryptocurrency in order to buy a Lamborghini. However, that is merely a status symbol (a nice one, but all the same).
Wealth is what is passed down from generation to generation and what allows you to be free of work—even if that means exchanging your time for money (which you would not do for free).
I like cryptos because they are bubbly "assets" (technically, they aren't assets, but I don't want to get bogged down in semantics).
Here's an illustration of what I mean. This is Bitcoin's 2017 run in what was clearly a bubble. The 5 - 12 doublings occurred so quickly that the coin nearly went vertical.
This means that your money can skyrocket with cryptos. Warren Buffett needs 5 years to double his money (at least presently). It can take up to 5 hours if you catch a good run with cryptos.
The art of trading bubbles is now knowing when to exit. Contrary to popular belief, if you are not trading a pump and dump but rather a genuine bubble (read more about the difference here), it makes more sense to exit late.
In 2017, for example, if you left after the fourth doubling, you would have missed 5 - 12 over the next few weeks. Even if you lose 30% of your gain, it's better to hold on for a little longer to get that extra money.
Because cryptos are in vogue, you have a one-of-a-kind opportunity to amass wealth quickly.
Notably, both BTC and ETH have seen their gains slow. That's why I've recently been looking into the Terra (LUNA) blockchain—Cardano (ADA) is already quite large. SOL is also large, but it may still return a lot.
#2 Wealth Preservation
When cryptos crash (which is unavoidable), you get a crypto-winter. Some are significantly longer than others. At the moment, it appears that we have just had a mini-winter (though this may not be the case—we shall see).
What I do is convert my cryptos into stable coins (such as USDC, DAI, and UST) and stake them on various platforms to earn much higher returns than banks and bonds can provide.
You can stake UST on Anchor for 19.5 percent APY using the Terra blockchain.
That is, incidentally, better than Warren Buffett right there. So, I just told you how to outperform Warren Buffet by investing in cryptocurrencies.
I'll go over the lesson again:
Purchase UST
UST should be sent to your TerraStation wallet.
Go to the Anchor platform and press the "Earn" button.
Deposit your TerraStation UST (from your TerraStation wallet) on the website.
Profit
I'm not sure what else is worth your time. I'm sure many people get four-year economic degrees at universities and never learn anything useful.
Finally, consider the following:
For me, the ability to accumulate wealth quickly (in about 5 years) and the ability to retire early (on as little as $250,000) are the two most compelling reasons to be interested in cryptos.
LUNA is, by the way, my next 20x target among the big coins. If the current bull market continues for another 12 months, we could see this by late 2022. SOL is also capable of 20x.
There are other reasons why I enjoy technology. One of them is that it eliminates many middleman positions, which serve to make the extremely wealthy even wealthier. Another advantage is that it lacks the entry barriers that traditional financial markets do.
Happy Trading!!
Thank you for your support.
I hope you've learned something. God be praised!