3 Ways Bitcoin Can Make Its Investors Achieve Financial Independence
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The cliché debate that emerged about 10 years ago, about the popularity of Bitcoin and other cryptocurrencies that have begun to show their existence in relation to investment assets, is still ongoing by some financial experts. The reason is, more and more Bitcoin is increasing its popularity with an increase in the number of investors.
Protected assets such as gold and stocks are obsolete among millennials and Gen Z. At this point, precisely in the internet era, they found crypto investment with its famous decentralized system.
Many young people today also know a fact, that in bank systematics there are many monopolies carried out by unscrupulous employees or someone with a higher level of position.
As intended by its creators, Bitcoin seeks to return power to society. No regulations, sanctions or prohibitions can stop people from using Bitcoin as money. Beyond that, a calculated investment in Bitcoin has the potential to bring people closer to achieving their dreams of financial freedom. But how can one achieve that?
Hodl
For investors, of course, large profits are a target and a reason to put their trust in funds in an asset. However, for those who put some funds in crypto assets in the hope that they will go up quickly, this is a very wrong move. Almost like gamblers, people who want instant riches often think that the volatility of crypto can bring them huge profits.
For this reason, crypto veterans prefer to take long positions. These veterans tend to hold (hodl) when bullish, and buy when bearish. Crypto currently can be likened to stock assets, where there are people who take advantage of the momentum for short and long.
It may sound simple, but crypto hodling has proven to be difficult in many cases. Several factors trigger the sudden Bitcoin sell-off, including FUD spreads and price movements.
Average Dollar Price (DCA)
Until now, many investors have implemented the Dollar Cost Averaging (DCA) strategy. Even though this method is very old, it is still proven effective in the world of investing in various types of assets.
As previously reported, a number of youths bought Bitcoin at a price of US$ 23,000 because of FOMO. However, they apply the DCA strategy, whereby if the price goes down, they will buy back the same amount of BTC, less or even more.
Another example is that El Salvador was initially criticized for adopting Bitcoin as legal tender amid the country's crippling inflation. However, they can reuse unrealized profits to fund social projects, such as building hospitals and schools.
Independent Management
Many are still not aware that putting money in a crypto company means that investors give it sincerely to the company. Since the FTX case emerged, many parties have finally realized the importance of managing assets independently rather than giving them to companies.
Basically, every human being must know the basic pattern of their respective financial management. Most of what we often hear from ordinary people, is that they don't have the time to learn an asset. They even tend to believe in parties or persons who promise big profits in a short time.
Maintaining ownership of the private keys through a self-help wallet, is of paramount importance for those seeking true financial freedom. The three ways above are the main pillars of financial freedom. However, we do not restrict users from trying other strategies that suit their needs. Achieving financial freedom with Bitcoin is very possible.
However, as senior investors say, it is better to focus on long-term profits from Bitcoin while reaping short-term gains in the process.
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