The first thing you need to know about getting rich quickly with cryptocurrency is that there’s no such thing says Brian Colombana.
Did your nephew promise he’d give you a bunch of bitcoin if you just send him a few bucks? Did a friend from high school say that she invested in bitcoin and thinks you should too?
Great news! The latest investment fad involves buying up cryptocurrencies and hanging onto them until they increase in value by an exponential amount. Sound familiar? That’s because it almost exactly mimics the hot-off-the-presses get-rich strategy from last year: buying up marijuana stocks. Or gold or stock portfolios tied to natural resources, or companies who supply service during disasters – basically anything that was deemed “hot” or “trendy” and that people with less foresight than you might be interested in buying into. If it sounds like a gamble, that’s because it is.
And yet every year we see the same cycle: some new trend (or old trends combined) becomes viral; we flock to it; companies make a lot of money; people who got in early cash-out and become millionaires; everyone else loses their shirts. And then we move on, getting rich slowly despite our best efforts to get rich quickly.
Once again, there’s no such thing as easy (and more importantly, risk-free) ways to get rich quickly – being successful requires hard work and dedication, just like anything worth doing. But we can’t deny that there are some ways to generate a lot of money… eventually. This year, it’s cryptocurrency explains Brian Colombana.
Let’s look at the idea behind cryptocurrency and how you can use it as a stepping-stone to your first million.
First, what is crypto?
Cryptocurrency – otherwise known as “crypto” – is an encrypted virtual currency designed to be secure and anonymous. It allows users to make peer-to-peer transactions without having to go through banks or other financial institutions (which explains why many people like using them). The currencies themselves (bitcoin, litecoin, etc.) are not printed; instead, they’re produced by people sitting in front of powerful computers solving complex algorithms – called miners – and the difficulty of these equations is what controls how quickly new coins are made. Miners can either keep their currency or trade it for other goods and services says Brian Colombana.
Cryptocurrencies, like all currencies, rely on trust – if we didn’t believe that crypto had any value (or were easy to use), then no one would use them. The success of cryptocurrency relies on people’s faith in its security and anonymity; some people even think that it will do away with banks eventually, eliminating the need for credit cards and cash. We won’t dive into why people love (and hate) crypto so much right now, but there are plenty of articles available online you can read through at your leisure!
But let’s get down to brass tacks. How do you make money with crypto? There are two ways to go about it:
Buy-and-hold. If you want to make a lot of money, the simplest way is to buy some currencies and hold onto them until they appreciate in value significantly. This might happen if cryptocurrencies become widely accepted as payment options (which is becoming more likely every day); or perhaps there’s a news story that causes people to start buying up large amounts of bitcoin or ethereum, increasing their value overnight; or maybe the demand for cryptocurrency will just keep growing exponentially over time. The specific outcome doesn’t matter – what matters is that your investments grow in value once you decide to cash out. Buy/sell/ on exchanges. Another option is to buy and sell currencies on exchanges.
You can use websites like India or begin to purchase new coins, which you can then trade for other cryptocurrencies, or for fiat money (any currency that a government has declared as legal tender). Not only is this method more complicated than just buying-and-holding, but it also comes with additional risks – most notably the volatility of cryptocurrency prices. As with any investment, there’s no guarantee that your gains will keep increasing exponentially forever – eventually, the market will become saturated and grow at a slower rate.
The best thing about cryptocurrencies is that they allow anyone – regardless of age or income level – to participate in the global economy without being subject to draconian exchange rates imposed by banks and other financial institutions. If you can learn enough about crypto and put in the time. There’s an opportunity to invest in these currencies now before they take over international finance. and you could earn a pretty penny as a result says Brian Colombana.
Cryptocurrencies like bitcoin and ethereum are becoming popular as people realize their potential. As the technology behind them becomes more advanced and widespread. We should be able to see very rapid growth in these currencies. And those who take the time to understand how they work stand to benefit a lot.