Cryptocurrency has made quite a leap from being an academic concept to the modern-day reality. A digital currency which is created and managed via the use of advanced encryption technique like cryptography, cryptocurrency has attracted quite a following over the years since its inception in 2009, and has been a tool for financial freedom. Blockchain, on the other hand, is a distributed decentralized public ledger which is also earmarked as the record-keeping technology behind bitcoin.
Over the years, Bitcoin, one of the first cryptocurrencies has captured a significant amount of investors and media attention. And this growing popularity has caused a significant change in the way financial transactions are operated around the globe.
With only a Smartphone and an internet connection enough to include you into the financial stream of cryptocurrency, it’s certainly a door that plenty has come knocking for. Looking at the stats, Bitcoin currently boasts over 25 million users on an average whilst the likes of MasterCard and Visa account for 604 million and 776 million users globally respectively and PayPal meanwhile has 235 million active users with them.
If you were to look at the bitcoin user stats based on gender, there are over 94.73 per cent male active users while only 5.27 per cent of users are female which is estimated to grow with time. Even though the women engagement in cryptocurrency is relatively low, cryptocurrency can be a good way to liberate and attain financial freedom for women too.
The potentiality held by these revolutionary digital currencies has led to a new era of financial operations where they are talked as a catalyst for changing the entire market. And it’s not the change in itself, but the way they are breaking the boundaries set by the other financial instruments which are making the news. So are they really breaking the contemporary barrier and redefining financial freedom? Let’s find out.
How Cryptocurrency and Blockchain are enabling financial freedom?
The opinion from the public is that traditional and contemporary banking system often fails to address the needed posed by the masses during the times of political or cultural instability. The same was seen in Venezuela where their currency Bolivar fell to an all-time low and the economy faced massive inflation and ruin.
People in the lookout for a viable option started dealing in Bitcoin as their major currency and it became a preferred mode of transaction for all. It’s not an exception as a digital currency can address issues that these traditional financial instruments cannot offer. But is digital currency limited to payments only? Nope, there are equally potential opportunities to generate wealth from cryptocurrency which will give you financial freedom. Here’s how you can do it:
• Buying and holding
Since Bitcoin came into existence in 2009, the rise has been exemplary for digital currencies. Cryptocurrencies like Bitcoin, Etherum and Litecoin have already seen market capitalizations in billions. Merely taking an example of Bitcoin which started trading at $1 and $2 in 2011 is now around the $10000 mark. Purchasing a small amount or percentage of these currencies and holding them out for a few months can be a viable strategy allowing you to gain massive financial outlay from it.
• Day trading
Cryptocurrencies are traded on exchange platforms which are similar to the global equity markets. Anyone who has a knack for technical or fundamental analysis and can channel those skills into cryptocurrency market trend and bank on the trade will obviously gain profitable levels. There are quite a few factors to take into play like market volatility and more which does make it a risky endeavor but its equally rewarding one.
Apart from cryptocurrency, you can also go for intraday trading of stocks, options, futures contracts and more where you can make good profits based on your trading knowledge and skills. You can do it on your own or can also seek professional help to guide you better about day trading.
• Mining of cryptocurrency
Mining is a word that is used quite extensively with digital currencies. It is a process where the use of computational power is done to verify the transactions and create new units of the cryptocurrencies.
Mining generates quite a good revenue in the long run and will help you build considerable wealth. But before going for mining you also need to be aware of the fact that cryptocurrency like Bitcoin cannot be mined with the use of consumer-grade hardware and requires an investment upfront.
• Initial Coin Offerings
Although cryptocurrency and Blockchain are still in its infancy, developers and enterprises are working their best to create novel use of it. One such use if Initial Coin Offering (ICO) where you are offered part of cryptocurrency at an early stage as an investor into it. Unlike that of a stock exchange based listing, ICO is open to public investment and can deliver exceptional growth in the long haul. Ethereum, another major cryptocurrency started as an ICO at the beginning and gave exponential returns in a very short period.
Staking is a process where cryptocurrencies are staked to verify the transactions. This approach allows the holders of the cryptocurrency to earn interest on their token as a form of reward. This process requires a person to lock up a certain number of tokens in their live cryptocurrency wallet. The more you have tokens staked, the higher will be the reward for you.
Airdrop is a word that refers to the marketing practice in the crypto industry. This practice refers to the process of handing out free tokens for new Blockchain projects, usually a small number of them to their followers and users. This allows the users to be motivated to use the new service and also gives you the opportunity to gain tokens in lieu.
These tokens can further be traded for another cryptocurrency which will give you the opportunity to see your cryptocurrency grow in value with time and help you generate wealth.
• Price prediction
Price prediction may seem like a bit familiar to the day trading option but they are quite different from each other. Price prediction is often cited as a safer option to day trading. Over here you can predict the crypto prices and depend upon your accuracy you will be rewarded with tokens. These tokens can later be used as payment means at partner websites or can be traded for cryptocurrency.
Cryptocurrency is certainly making quite a mark among the masses and will likely see exponential growth over the upcoming years. They can be a good way to generate revenue in the short term while also posing as a great option for wealth generation. It has the potential to redefine the way financial freedom is thought of and will certainly disrupt the way financial performance is ongoing in the world.
Note: This informative article was written by advisorymandi. Get More From the Author on https://advisorymandi.com