Is it possible to achieve financial independence with Bitcoin?
Do you think Bitcoin trading can be your first job؟
Even more than that, a calculated investment in Bitcoin can potentially bring one closer to financial independence with Bitcoin. But how to do this?
How can Bitcoin be like a first job?
This attention has occurred for many reasons. From a potential solution to the economic problems of the existing fiat system to reaching unbanked and diversified portfolios. However, a large segment of the general public sees Bitcoin as a gateway to financial freedom amid rising fiat inflation and geopolitical uncertainties.
Traditional banking systems have repeatedly served as a tool for centralized governments to dictate access to finance, especially in times of emergency. More recently, Russia’s war in Ukraine served as a case study for how digital currencies can help refugees and the unbanked access finance for basic needs.
As stated by its creator Satoshi Nakamoto, Bitcoin seeks to give power back to the people. Beyond that, a calculated investment in Bitcoin has the potential to bring people closer to the dream of financial freedom. But how can people achieve it?
The massive volatility of digital currencies combined with the restlessness of an investor is a recipe for immediate loss. Many do not know that Bitcoin – unlike other digital currencies – is a long-term investment. And buy dips in bear markets.
Excluding a few off years, Bitcoin holders saw an average annual return of 93.8%, according to UpMyInterest data, which reached 302.8% in its best performing year.
As simple as it sounds, hodling (crypto language for holding assets and the equivalent of holding) is difficult for investors. Some of the factors that cause a sudden selloff in Bitcoin include the spread of FUD (Fear, Uncertainty and Doubt) and price movement.
While profiting from Bitcoin’s volatility makes sense in the short term, narrowing the price chart shows more long-term motivation to hold. Additionally, investors who own Bitcoin will always be able to use these funds across geographic boundaries without losing value.
This involves setting aside a predetermined dollar amount from a regular income to reinvest in Bitcoin every day, week or month.
While El Salvador was initially criticized for adopting bitcoin as legal tender amid crippling inflation, the country could use its unrealized gains to fund social projects like building hospitals and schools. slow
With the Bitcoin bull market coming to an end by 2022, Salvadoran Vice President Naib Bokel followed a similar strategy to DCA where the country bought 1 Bitcoin every day.
When Bokel announced his plan to buy bitcoin, it was priced at roughly $16,600, as shown by data from Cointelegraph Markets Pro and TradingView.
Since then, the price of Bitcoin has increased by 40.46.Financial independence with Bitcoin Personal custody
When it comes to holding Bitcoin long term, the key is to not trust any other third party with the private key of the assets. Investors who store bitcoins in exchanges unknowingly lose complete control of their assets.
Since the FTX scam came to light, the case for custody itself has gotten stronger. Investors who have suffered losses due to misappropriation of funds have learned the importance of self-preservation. Maintaining private key ownership – through self-custodial wallets – is critical for those seeking true financial freedom.
The consequences of FTX also forced crypto exchanges to prove the existence and safety of users. and thus avoid the low liquidity situation.
However, hardware alternatives to self-custodial crypto require an initial investment. But choosing an ideal way to store private keys is up to users. Even if it means writing down private keys on a piece of paper.
The three methods mentioned above—hodl, dollar cost averaging, and self-custody—form the main pillars of financial freedom. However, users are not limited to using other strategies that suit their needs.
Achieving financial freedom is possible with Bitcoin. Given the nascent nature of the crypto ecosystem, investors are advised to focus on the long-term benefits of Bitcoin. and at the same time earn short-term profits in this process.