There is no shortage of solutions to become an annuitant and achieve financial independence.
Among these solutions, we find cryptocurrencies and the blockchain. This is a new asset class that is getting talked about for many reasons: they are innovative, they offer solutions to increase the performance of our current system, they give us more control and transparency over our money, etc.
I suggest you take stock of the reasons that led me to take the plunge and buy it (eg bitcoin, ethereum, polkadot, cardano, etc.). In this article, I am not offering you any investment advice, but I am sharing my point of view on the subject. We are here to learn and have fun! Besides, if you find that it is also an excellent opportunity, do not hesitate to always do your research before you start. Fortunately, there is one site that helps beginners to invest. Visit this site!
As a bonus, you will also discover the main virtual currencies that I have bought, the platforms that I use to buy my crypto-currencies and some other (not insignificant) advantages that blockchain technology can bring you.
I hope you’re ready because… here we go!
What Is Cryptocurrency?
It is a currency that is 100 percent virtual. This means that it is not in your bank account. Instead, it is stored on the blockchain. This means that you have absolute control over your wallet and it is not your bank (and your government) that is responsible for it. The first virtual currency is bitcoin.
It was created in 2008 by Satoshi Nakamoto (whose true identity is not known…). Since then, many other currencies have been created and blockchain technology has also made it possible to extend well beyond “simple payments”.
Why Invest In Crypto?
This is a legitimate question to ask yourself before investing your money in an asset. Because finally… What are the motivations of all its people and institutions to invest so much money in these digital assets?
For me, the main reasons are:
- another payment option
- an additional way to diversify my investments
- a way to take advantage of the exceptional price increase
- as a hedge against inflation
- major adoption and numerous technological evolutions
Buy Bitcoin (BTC) As A Means Of PaymentAnd yes, we have seen that crypto is a virtual currency. This means that you can make transactions (buying and selling) to obtain goods and services.
- Many institutions allow their employees to receive their salaries in BTC. Since October 2021, more and more personalities have decided to receive their payments in Bitcoin (sportspeople, politicians, actors, etc.).
- Some countries allow you to pay your taxes in crypto (e.g. Switzerland)
Also, you may have heard of bitcoin adoption in El Salvador? It is the first country to adopt a crypto as legal tender in the country. A huge step forward for the recognition of this technology (and its strength as a means of payment).
It would not be surprising if other countries follow suit in the course of 2022…
I don’t know if you’re aware but it’s quite possible to recover money (eg euros) in banknotes from an ATM, with your bitcoins. And yes, do not hesitate to look around you, the next time you go to a supermarket, there is a good chance that you will find a crypto ATM there. Some countries are registering more and more of them: United States, Canada, Switzerland, Spain, Poland, Bulgaria, etc.
Buy Bitcoin As An Investment
You are not supposed to know that, in recent years, its price has exploded… which makes many people consider it an attractive asset to grow their money.
Moreover, it is not surprising to find more and more Bitcoin, Ethereum, etc. in the majority of large investment portfolios.
What does that mean? Crypto is seen as a way to diversify one’s investments. And investors want to take advantage of it! So why not you?
What is interesting is to see that more and more people are buying bitcoin and keeping it in their investment portfolio. This means that they are positive that it (1) will have a bigger price and (2) that it will still be around in the next few years. These people are called HOLDERS (in crypto jargon). Basically, if you don’t touch them because you think they will go up in price: you HOLD.
Buying Bitcoin (And Selling It) As A Means Of Speculating
Here, we are no longer talking about investment but about speculation (= trader = trading = buying and selling quickly in order to sell more expensive than the purchase price).
Why is there a big craze for cryptocurrency trading?
- a lot of volatility: the price changes quickly, so we can quickly hope to make gains (or losses)
- accessible 24 hours a day, 7 days a week (which is not the case with the stock market)
- easy to get started. After a few clicks you can already practice.
ATTENTION, the practice of trading is not to be taken lightly! Be sure to train yourself before you start.
Buy Bitcoin For Security
And yes, this digital asset class is used by many people to protect against…
- devaluation of their local currency
- control of banks and governments
Basically, if I’m ironic, it’s a great way to protect yourself against our current monetary system which works so well (no government debt, no poverty, everyone controls their money,… (Thank you to take this literally!).
Is it possible to earn money if you buy bitcoin, ethereum, etc?
As you can imagine, the answer is yes! How is it possible ? Because in recent years, bitcoin has only gone up. And the price keeps making higher highs (this means that it is making record after record).
Many detractors disagree with these comments. Worse, some say that the financial markets or gold are performing much better. I will not address this point because (1) it is not the subject of this article and (2) this blog does not wish to dwell on ideological subjects.
How To Buy Bitcoin (And Others)?
The first step is to define what you want to do with it (keep and stake? buy and resell regularly?). Then you have to define which ones you want to buy. Indeed, they are not all accessible on all platforms.
Once you have defined this, you can very quickly open an account on a platform of your choice. I just ask you to be very careful about the ones you choose because there are a lot of fake sites and unreliable platforms.