One Man’s Wealth Is Another Man’s Poverty
Wealth means different things to different people but at the end of the day true wealth means having more than you need, complimented by freedom, health and a great lifestyle. The accumulation of financial wealth is however what I am going to be focusing on and more specifically, wealth within the Crypto space. There are a few important approaches that are fairly common amongst most Crypto investors who started with basically nothing and went on to accumulate significant wealth. Unless you are already super wealthy, these are the strategic moves that you need to consider. A dedicated and diligent execution of these strategies can produce tremendous wealth over time! This is not some highway to wealth but rather a path that will actually require time and effort. Provided that is you, these strategic moves should help you attain your financial goals within the Crypto space!
With that in mind, let’s explore my key principles to Crypto wealth! As always, I am not a financial advisor and this is not financial advice. These are simply my own personal methods.
Dollar Cost Averaging
No matter how much you choose to invest in Crypto, ensure that you put aside a set amount on a regular basis. Whether this is on a weekly or monthly basis is actually inconsequential, provided it is done consistently. This amount does not need to be excessive but rather what is affordable and within your means. The idea behind dollar cost averaging is that you manage to gain entry points into the market at staggered price levels, ultimately reducing your risk. This approach also eradicates the need for a lump sum investment, which is often very difficult for most potential investors to get their hands on. By simply adding small and manageable amounts, investors can begin to amass a meaningful amount of Crypto over time.
Once again, consistency is at the heart of this approach and I am sure many will agree with me that this is one of the most powerful approaches. This is especially true for new investors, as timing the market is not necessary.
Crypto Side Hustles
Whether you are a blogger, or make use of online earning sites such as Cointiply or Noise.cash, earning additional Crypto is another key aspect to consider. The amount of Crypto that can be earned via these channels depends solely on the individual. There are a number of opportunities and avenues to explore within this genre of Crypto accumulation, making it an accessible option for most people. Just ensure that the opportunities you choose to utilize are legit and that the compensation is reasonable and relative to the time required.
It is always wise to remain with the leaders, so as to avoid the scams and ensure that you actually get paid! It is important to note that all earnings via the methods I am outlining need to be hodled and not spent. Earning or generating Crypto is rather pointless if you choose to spend it. The idea here is accumulation and mass accumulation on as many fronts as possible.
Passive Income Mechanisms
Wow, this is an element of accumulation that is almost limitless! Pretty much any opportunity can have a passive element to it, one just needs to get creative. This is my favorite approach, as it has so much potential upside and scope. Referral based opportunities are great for this approach! A lot of promoters utilize Binance or Bybit, as many Crypto investors require the services of an exchange to buy and trade Crypto. Any opportunity or platform that offers a referral program has the potential of producing passive income.
Building your income base by leveraging opportunities and referral programs can be very lucrative, especially if you manage to onboard a couple of very influential and active referrals. Building any form of passive income requires time and one should not lose heart along the way. Any amount of passive income is an income that you will not have to work for again and one should always meditate upon that as an encouragement to continue!
Trading Altcoins With Massive Potential
This can be a rather tricky and dangerous venture, as outlined in “Micro Cap Gems – A Dangerous Journey?”. Deciding to explore this avenue should only be done after much consideration and is perhaps only suitable for individuals with trading experience. The upside to this method of accumulation is that when dealing with smaller cap projects, one does not necessarily have to invest large amounts of capital in order to experience significant gains. In my recent article, “Two Sapphire Picks From 2020 That Surged More Than 300X”, I reveal two of my most successful altcoin picks from 2020. In this case, a small investment of even $100 would have realized a profit of at least $30K, which can go a long way to providing capital for further investment and passive income generation.
Lending & DeFi
This is another very lucrative and exciting sector. Lending has been around for a number of years, with names such as BlockFi and Celsius leading the space. Earning interest is great but I would suggest only lending out a portion of your holdings, as there is always risk involved when it comes to any third party. Diversifying your allocations between numerous platforms is also another way that you can reduce your risk. Lending returns generally vary between 4% and 6% per annum.
DeFi definitely has the upper hand when it comes to the annual percentage yields on offer between the two avenues. However, increased profit potential comes married to increased risk! Rug pulls and exploits are a very significant risk within the DeFi space and partakers need to research and ensure that they fully understand these risks. That being said, the returns are rather significant in comparison to traditional lending and interest bearing accounts. Getting your hands on some quality DeFi projects before the market picks up on them can be very rewarding and will continue to generate great income and profits.
Rinse & Repeat
Exercising these 5 principles can see your Crypto wealth grow exponentially over time and literally enhance your overall financial position. Don’t fool yourself into thinking that you can attain these results within 6 months, this approach will require a diligent approach over a number of years. However, no outcome is guaranteed and these are the methods that I have personally utilized to grow my own Crypto holdings.
Thanks for the visit and I wish you well on your own unique journey. Hopefully, I have provided some food for thought for those unfamiliar with these methods.