Posted by You can choose to live all kinds of lifestyles. For instance, maybe you get a job that you don’t care for much, but you keep working at it because it pays the bills. You might also look for a job that you love, but maybe it will never make you rich.
Some people who get into crypto investing and trading love both the job and the dividends. We’ll talk about the crypto investor lifestyle right now. If you like what you hear, maybe you’ll decide to pursue this option as a career.
What Exactly is Cryptocurrency?
Crypto is a digital currency. Many forms of it exist. You use it as an exchange medium through a computer network.
Crypto does not depend or rely on a central authority, like a particular government or bank. That means regulating it poses some unique challenges. However, the US government intends to regulate crypto, and President Biden recently signed legislation to that effect.
Can You Make Money Investing in Crypto?
You can definitely make money investing in crypto, the same as you would investing in the stock market or any other commodity. Just like the stock market, though, crypto assets can appreciate or depreciate.
If you want to try and make money from crypto, you might buy some and store it using a platform, much like you’d put money in a bank. You can look into different platforms and see what interest they pay on various crypto forms.
For example, AQRU pays 12% interest on Stablecoins right now. If you set up an account with them and you have some Stablecoins, you can stash them there and get that return rate if you leave them in there for a year.
What About Crypto Trading?
Buying crypto and stashing it in a digital wallet is the right move if you want to quickly move it around. Storing it with a platform makes more sense if you intend to leave your money in that crypto form as a long-term investment.
Crypto investing and crypto trading are not precisely the same thing. In both scenarios, you’re buying crypto, but with investing, you’re stashing it somewhere for a longer time.
With trading, you might only hold onto that particular crypto form for a few days, weeks, or months. You’re waiting for a time to sell it off and make money on it, the same as you’d do with a stock you own.
Crypto investing makes more sense if you plan on using crypto as one of your main assets when you retire or if you have a particular goal in mind. Maybe you see crypto as an asset that will appreciate as you save up enough money to buy a house or car. Perhaps you plan to take a lavish vacation at some point, and you’ll cash in that crypto for that occasion in a couple of years.
What Do You Need to Get Started with Crypto Investing?
Money is the obvious answer to what you’ll need to start investing or trading in crypto. Say that you have a job where you make enough to cover your rent or mortgage payments. You also make plenty to cover your utilities, groceries, etc.
You now have money left over. An economist or financial advisor would call that disposable income. You can do just about anything with that money. A more traditional investor might put some of it into CDs or a mutual fund.
Crypto is for nontraditional investors, though, since it has only been around for a few years. If you decide to take your disposable income and put some or all of it into crypto, you can certainly do that. All you need is to find a platform that you feel gives you a solid return.
What Do You Want from a Crypto Storage Platform?
Crypto storage platforms are not the same as crypto wallets. Crypto wallets make more sense for an individual who wants to quickly trade their assets.
A storage platform will offer you interest rates on your crypto, the same as you’d see with a savings or checking account at a bank. You might also notice that if you store your crypto with a storage platform, you can see much better returns than you’d get by putting money into a bank account.
You might wonder why everyone doesn’t use crypto platforms to store their assets if they can get back better returns on them. Regulation, or lack thereof, is the issue.
With crypto, the government wants to put rules in place, but it’s not so easy to do that. Until crypto sees the same oversight that banks do, banks and fiat currencies, like the US dollar, remain much more stable.
If you put some of your excess income into crypto and want to keep it for a particular financial goal, you can try to find a platform that insures its investments. That prevents you from losing money if a hacker gets by the platform’s defenses.
You might also look for a platform that gives you the best possible rates for any crypto form that you wish to store there. You may look for one that accepts and lets you store many different crypto forms.
Hundreds of them exist now, and you might put your money into a more obscure one. If so, you should check to see if your platform accepts it.
Most financial advisors will tell you that you should diversify your investment portfolio. That remains a smart play if you get into the crypto investor lifestyle. Even if you feel confident that one crypto form will remain stable and make you a lot of money, it’s best to spread your financial assets around.
If one crypto form crashes, you won’t lose all or most of your excess cash. You might choose to put some money into crypto and store it using a platform with good interest rates, but you can still invest in other proven vehicles like stocks or bonds.
