As life goes on, some people complain it is getting much harder. Some even believe robots will be taking our jobs and our retirement age with being stretched out well into their 70s because their just isn’t enough money to support it. People are not wrong to complain about it.
Life had been very good for decades where you work for 30 years until your early 60s, and you can retire comfortably with a nice pension and social security. Now the word pension almost doesn’t exist, and social security is said to be gone by the time millennials are well into retirement. So what’s a young person to do today? Begin building yourself a retirement plan as early as possible, and don’t wait for someone else to do it for you.
One of the best things you can do with any investments is hold them over time, through ups and downs of the market. The strategy is the same for cryptocurrencies. Many people think day trading Bitcoins is easy because you buy it today when its low and the next time it goes up a bit higher, you sell it. Well, that’s wrong. Day trading is not for everyone, and even those who practice it every day for years tend to get it wrong. When you’re wrong in trading, you lose a lot of money. Just like Warren Buffet says, “The stock market is a device for transferring money from the impatient to the patient.” This is also true for cryptos. Owning equity into something is great, but it requires your patience.
Holding your cryptocurrencies during a dip or even buying more is a great idea. This helps your investment rise, and it is the boring way to go. However, George Soros, one of the best investors even said, “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”
Passive income is possible in this market. It does require some research since not all coins are equal in the dividends they pay out. Passive income in cryptocurrencies can be done in the form of mining, staking, interest, forks, capital gains, air drops, lending service and more. Mining requires you to buy semi-expensive hardware and does use a good amount of electricity, but if you’re efficient, you can make money.
Staking is one of the best ways because you can make upwards of 10% on your token or coins by just keeping your desktop wallet open. Different lending services have sprung up which they use cryptocurrencies and give you a return on investment back in your specific coins. It is essential not to speculate on the lending services you use. Since it is an unregulated market so far, it is vital to check the service just like you would a new cryptocurrency. Check the team and their history.
Millennials Prefer Bitcoin
Millennials are the only group of people as a general whole who seem to understand cryptocurrencies. This is why they prefer to save for retirement using Bitcoins than any other way. Most coins have already put an inflationary period into their own algorithm. For example, staking gives you a certain amount of coins per year to combat inflationary prices. Cryptocurrencies can eventually become mainstream where most transactions are being done in digital currency. This is really good because holding now can eventually get you to a point where you won’t need to cash out into fiat currencies. You can just use the coins you have now. This will also be better because most people will be using the blockchain and the blockchain is a perfect tool to fight crime and fraud.
Finding the Right Cryptocurrency
Many people have made a fortune with their Bitcoin, but there are much better coins out there that will serve a bigger purpose. For example, Ethereum is on track to do better than Bitcoin in 2018, and there are many good reasons to support this. First and foremost, it is far more superior crypto regarding speed and transaction fees. It also has more use cases besides a peer to peer transfer. Ethereum is being used as a platform to support ICO’s and to help bring data onto the blockchain for big corporations.
For example, companies like Sony and Microsoft are thinking about bringing their business onto the blockchain for more transparency and efficiency. Well with Ethereum being the biggest one doing that, they can easily help. Also, many cryptos are using Ethereums blockchain which means they are an ERC20 token. More than half of the top 100 cryptocurrencies right now are ERC20 tokens.
With all this said, we are not financial advisors, so it is very important to do your own research. All of this is our opinion that we have accrued from being in the cryptocurrency world for the past five years.