In today’s world, you can order an item from half a world away, send and receive resources without having to confirm your identity and find dozens of jobs without ever leaving your room. Yet, even in a world with so many opportunities and possibilities, a lot of people feel like they have no options left.
To dispel this myth, we’ll give you five simple examples of how you can use crypto to improve your own finances (sometimes in a major way and sometimes just slightly). So, here’s our list!
1. Investing for long-term growth
A lot of people find cryptocurrencies to be a perfect long-term growth option.
How come?
Well, the majority of them heard about crypto in 2017 when it first exploded and reached 21K. Sure, it will reach 66K in 2021; however, proportionally speaking, the growth of 2017 is unprecedented.
The cultural impact it made was even greater.
After all, this is when everyone started taking cryptocurrencies seriously. Still, this wasn’t the case with everyone. There are people who bought crypto when it was $12 and kept it until it reached its all-time peak.
You have so many crypto millionaires out there, too many to dismiss this idea as nothing but a tech fluke or a passing thing.
Now, let’s ask ourselves one important question – what’s the difference between people who do not believe that BTC will ever be worth thousands of dollars and those who don’t believe in a promising new token? If anything, the BTC explosion never happened before, which means that these people had more right to believe this.
Simply put, there are a lot of cryptocurrencies with a high ROI potential that you just shouldn’t ignore. With each of these investments, there’s a chance that you’ll convert a handful of dollars into a small fortune (another chance of your $12 investment becoming a $66K asset at one point).
2. Remote work and remittances
If you’re a remote worker, you can always choose to get paid in crypto. This way, you’ll receive money immediately, at lower fees, and have an easy time converting it to fiat money without having to deal with conventional exchanges.
This also makes a lot of administrative aspects of handling a payroll a lot easier, which is why so many employers actually find that they prefer paying in crypto. You wouldn’t be surprised if whether you can receive money in cryptocurrency is one of the first things that the accounting department of your new employer asks.
At the same time, if you decide to travel abroad for work and send money back home, it’s essential that you understand that remittances are most convenient when sent via crypto wallets. This is because neither the sender nor the person back home needs too much to receive them. All they need is an app and a mobile device. That’s it.
One thing that both of these concepts have in common is the fact that you can use it to fix your financial status back at home while either working abroad or having international employers. In other words, crypto payments have done a lot to internationalize the workplace as we know it.
3. Mining and yield farming
There is a way for you to turn crypto into a passive income. There are two ways, actually. You can start by mining.
While mining is a power-hungry process, your job is really to set up some rigs and pay the electricity bill. That’s it. Once you make the initial investment of outfitting the room (with rigs, coolers, and ensuring that the grid of the place is potent enough), all you have to do is monitor the systems, only occasionally having to step up.
Yield farming is a concept similar to farming dividends with some stocks. What you’re actually doing is providing some of your crypto to the system of DeFi (decentralized finance) in exchange for rewards. Now, the system itself is quite volatile, which means that, while doing so, you’re exposing yourself to some risks. However, it’ll likely end up being more than worth it.
At one point, you can take no more work (you don’t have any leftover free time or energy). Still, even then, you can generate passive income. Why not do it through crypto, as well?
Also, if these two aren’t enough for you, you could also pick a third option, going to P2P crypto lending platforms and finding borrowers for your crypto. This way, you can get interest money as a passive income.
4. Crypto trading
If you’re interested in day trading, crypto might be the asset that you’re looking for.
Why crypto?
Well, while day trading is dynamic, its yield per trade is usually not that high. In theory, in order to make some real money, you would have to make too many successful trades. Since the crypto market is more volatile, every successful trade gives you a higher reward, which means that, in theory, if you’re good enough, you could make money more quickly.
Just remember that a higher reward always comes at the cost of higher risk.
Even if you don’t know much about trading, the majority of exchanges allow for the option of copy-trading. This means that you can find a veteran trader and set up your own trades to mimic theirs. The exchanges that allow this usually do it at a certain fee.
Keep in mind that this is more time-consuming than you think, but the time you allocate to these trading instances varies from person to person. Some people start off as part-time traders and, upon learning that they have a gift for it, expand to become full-time.
Day trading is not your only option. Scalping is even quicker, and it involves exploiting even the slightest fluctuations in market prices.
5. Using it as a payment method
Finally, you can slightly improve your finances by having a crypto wallet, keeping some funds in crypto, and paying this way when it’s convenient.
Sure, cryptocurrencies are volatile, but the majority of princesses are expressed in fiat currency, and the costs are only transferred to cryptocurrencies. In other words, nothing is really 0.003 BTC; it’s just its equivalent in fiat that matters until it’s the moment to pay. The price is always set in dollars (or another fiat currency).
If anything, by making a faster transfer (thanks to the nature of cryptocurrencies), you can easily exploit a momentary price discrepancy.
Second, transactions are encrypted and recorded on a blockchain. In many online transactions, this even increases cybersecurity.
Thanks to the anonymous nature of these payments, you get to enjoy a higher anonymity of all your transfers.
The biggest downside is that there are no chargebacks. This means that once the transaction is complete, there’s nothing you can do about it. While this is great for merchants, it’s not so amazing for individual users. It’s also one thing that makes it a great potential payment option for online merchants.
Cryptocurrencies are an incredible financial tool if you can play them to their strong sides
Cryptos are volatile, and they’re the newest major asset on the market. As long as you understand the risks, you shouldn’t struggle too much to use their advantages to your own benefit. Just keep in mind that the riskier the asset, the higher the potential for reward. It’s all a game of risk management, and you need to see it as such.
