Everyone that invests into the bitcoin or cryptocurrency markets has some goal in mind when they are doing so. Perhaps it is trying to preserve your wealth by escaping inflation, or maybe it is the the technology that it presents and also the ability to be your own bank. Or it could be the prospect of becoming rich off of your investments and clearing all of your debt or retiring early. What ever your plan is, before making an investment into any coin, you should have already decided what your goal to achieve with that investment is.
We all have our own reasons, but have you put a plan to plan on how you will achieve your goals?
Let's explore this more.
Maybe you're a fan of bitcoin, ethereum, DeFi or perhaps you like searching for the hidden low-cap gems in the market. Whatever it is, there is room for all types of investors in this market.
If you aren't already aware there are many use cases for crypto to be used across the world. Many people in Africa or even countries in South America are already using crypto as a form of their main currency. A way to escape their current currency that has become so unusable because of the inflation that was caused in those regions. In those regions bitcoin, something that is scarce and where the inflation becomes less and less over time looks incredibly attractive for them to preserve their way of life.
As for me, if you have been following me for any length of time, you probably already know that my goal is entirely investment based. To use my earnings from bitcoin and crypto to retire early, set up some more real estate investments, live in some tropical paradise and just live off of my passive earnings until the end of my days.
Now that is just a dream until you actually make steps towards putting it into actions.
But how can you actually put this into action if you are starting from zero invested?
Well the first thing you must do is to take care of your current finances. Clearing credit card debt is the first thing that needs to be done. Also taking a deep look at your finances, eliminating everything that is not-needed is also key. By getting rid of this excess you will free up enough finances to put that all towards investing.
But something critically important to remember is that investing wisely is a game of patience. 999 times out of 1,000, people who invest will not get rich quickly, but slowly. I often compare investing to something like learning a foreign language. Often it is hard to measure or see your own progress, but day by day, week by week you are moving further along in your journey.
This brings me to my next key point, Consistency!
Investing cannot be a sporadic event, because if that is the case usually it just won't amount to much. One of my favorite people, Tony Robbins, often tells a story about this exact type of story. There was a mailman who was making a rather slim amount of money, never really being that well off. But each paycheck he would always invest a set percentage of his salary into the stocks that offered a good dividend. By consistently do this, by the time he was retiring, this mailman had become a multi-millionaire. The power of compounding interest is a magical thing.
And that is why it is so important to continue to always invest. This is also why I have really been taking advantage of crypto lending services such as BlockFi and Celsius. It is important to always remember the risks that come with these services, but it is also important to remember what they can offer you.
For example, just this year bitcoin is up over 70%. Ethereum is up 200%. These types of services offer a bitcoin interest rate of around 6%, and an ethereum rate of around 5.25-7%. If you have 2 bitcoin held at BlockFi, that means you could have a return of around 82% this year. And let's say you have 10 ethereum, this would also mean you would be up around 270%. It is an incredible way to compound your earnings. But as I mentioned before it is always important to remember the risks.
The following has always been my goal since entering the market when I did. First and foremost my goal is to accumulate as much bitcoin as possible. I view this as the standing rock of crypto, the one you can count on being there 20 years later. If it were to fail, that would not bode well for the market as a whole. While it has already increased an incredible amount, I still believe we are early in the game, and all of those crazy bitcoin price predictions are in-fact just not that crazy.
Ethereum is my #2. I view it as the second pillar of crypto. While not as safe yet as bitcoin, I have full confidence it will be around for the long haul. I have not made up my mind on defi yet. I think it has incredible potential, but the coins we have now, might not be the coins that do in-fact win out. It has yet to be determined. But with that said, during the summer I did invest heavily in this market, but have sold out of most of those trades. Putting all of that money back mostly into bitcoin, and some into ethereum.
So plainly put, my plan is to buy as much bitcoin as possible, ethereum as well to a bit of a lesser extent, and lend those out to compound my gains. Although I do keep a healthy amount in cold-storage to protect myself.
But what is your plan or goal? Before purchasing a coin, do you already have an idea of what you will do with it yet?
As always, thank you for reading!