The amount of wealth you can build with crypto completely destroys just about every other investment platform. However of course crypto is filled with scams, hacks and massive price swings. One day you might see $100,000 in your wallet and next month $350,000 or even $45,000. Depending on what you hold, how secure your holdings are and your risk tolerance there's a lot of factors that go into building as safe of a portfolio as possible.

What's also really cool is it's never been easier to MAKE or EARN crypto through various means. From playing games to writing articles just like this one on the $HIVE blockchain the possibilities are becoming endless.

But it's not for the faint at heart. There's a lot of emotion, price swings and trial and error that goes into it all. As mentioned above there's a lot of risk but it's possible to minimize it through knowledge and self responsibility in the actions you take.

Stablecoins

Many have been looking at stablecoins as a way to make it big. With those high 5% APRs and the flexibility to add them into DeFi platforms and other investments for possible higher yields they of course come with their own risks.

But the real risk with stablecoins is they are backed by government issued paper money. The means they are susceptible to inflation which we all know is running rampant right now and is only about to get worse.

Currently the USA government reports inflation at 3.4% which let me remind you their target is 2% or lower thus well over it. That means on your 5% APR you're really only earning 1.6% over inflation.

Or are you?

You see that number the government is reporting to you don't account for things they say are required to live. Things like shelter, food and energy. All of which are well up to 10% or higher inflation numbers. You've felt it at the pump, you've felt t in your electric bill and you for sure felt it if you're trying to be a first time home buyer!

Fiat money is being destroyed in value and thus that's why crypto often is a good bet now. Bitcoin holds a decent value itself being that only 21 million will ever be mined in circulation and we now have somewhere around only 2 million left to be mined (with a bitcoin halving emission coming up in 90 days) you can see why bitcoin is a store of value to many and a hedge vs the fiat system. Much like gold and silver should have been but was destroyed once again when the USD came off the gold standard.

So how do you build wealth with crypto?

To me the answer is a mix of it all. You're going to want some fiat because crypto still has grey areas and isn't accepted everywhere. But crypto could give you the upper hand in terms of earnings and as a hedge vs inflation. But with all of these you need to look at emissions and demand as it's a constant supply and demand game with all of the new tokens. However pretty much every new token gets it's value from a few core tokens that have become a standard in the crypto world.

Those being $BTC and $ETH you might even be able to throw a few more in there which are new contenders but are building rather large ecosystems themselves but for this case and point those seem to be the two standards.

Freedom

We all like freedom right? The ability to do what we want with our own money, value and time? I know I do but those freedoms have slowly been eroded over my lifetime and most likely will only continue.

For me crypto was and to a point still is a way to fight the system and restore at least some of those freedoms that have been lost. Primarily the freedom of privacy and security. Before a court order had to be sent to a judge before things like bank transfers and communications could be tapped into by governments. Now that's a free for all and governments and companies suck this information up into massive databases.

Privacy focused cryptos can help to put a shield up against this and there's also the freedom of what many call financial freedom. Primarily crypto was and to an extent still is a means for every day people to build wealth and get closer to what is considered to be financial freedom.

To me financial freedom is to have everything you need without having to work. That means food, water, shelter and a little extra for other things you like. You no longer exchange time for money. This is mainly done not only by the increasing value of cryptos but also the ability to start acting like a bank yourself. Banks make tons of money in loans, fees and other stupid high APRs. I mean have you seen the APR on a credit card? It's most likely you're paying 14% and in some cases up to 30%!

Companies and banks lend out your money to others and pay you peanuts on top of the APRs they are earning. With crypto and in particular platforms like defi, gamefi etc you now have the unique ability to act as a bank and collect higher APRs on your wealth.

How are you currently building wealth with crypto?

Posted Using InLeo Alpha