There are many great ways to achieve financial freedom. In this article, we will focus mainly on how to generate passive income safely. The way is cryptocurrencies. They have the same use as other payment methods. Economic operations are more secure and profitable, international, and decentralized currency. Be your bank after reading this article.
If obtaining passive income has become the goal of millions of people worldwide, obtaining it through cryptocurrencies is one of the most popularized trends due to its great advantages. In fact, the foundation of financial freedom is to use wisely the options and resources available to not depend on a boss, not having schedules, and seeing our accounts grow month by month. And that is precisely what is achieved by investing in cryptocurrencies.
How to generate passive income?
Like any investment, it involves risk. Like any new venture, it takes time and dedication, especially in the beginning, to understand how it works and maximize profits little by little. However, the results are well worth the risk, time, and effort.
There are many ways to live on passive income online. The affiliate marketing, the sales training, and marketing products market places are few. They require a medium-low investment and involve a medium level of difficulty.
The sale of e-books and the monetization of websites are also other sources of passive income. However, they require considerable time to make significant gains.
At present, investment in cryptocurrencies is what is generating a real phenomenon. But why? Beyond the advantages that we will analyze below, the truth is that it is a market taking off and is full of possibilities.
7 advantages of investing in cryptocurrencies
These are the main advantages of investing in cryptocurrencies:
- There are no intermediaries. Unlike other investment methods, that of cryptocurrencies allows each person to be the owner of their money, which they store in a free wallet. That is, each person is their bank, without expenses or commissions.
- It is an international currency. Cryptocurrencies are versatile and stored on the network so that they can be used anywhere in the world.
- It is a decentralized market. Any government or central bank does not control it. As a result, there is no dominance and oppression that fiat currencies like the euro or dollar exert over people.
- They are 100% safe. The platforms require a cryptographic key for any digital operation. For payments with cryptocurrencies, it is unnecessary to provide personal information that could expose the investor to identity theft or other fraud.
- There is more than one type of investment platform, allowing you to choose from a variety of trading types: traditional exchanges to buy and sell based on market price, direct trading exchanges where the platform only connects sellers and buyers, exchanges of cryptocurrency brokers to exchange one cryptocurrency for another and cryptocurrency funds where you buy is a part of the fund, but you do not buy the currencies themselves.
- They have great profitability. A price can quadruple in 24 hours due to the volatility that characterizes cryptocurrencies. Therefore, the profitability in the short and medium-term is high.
- Transactions are faster and cheaper. This advantage is especially beneficial for companies since transactions through traditional channels to clients located in other countries tend to take time and have high costs. In contrast, a transaction with cryptocurrencies is almost instantaneous and has a low cost.
Outlook 2020/2021 for cryptocurrencies
Bitcoin was the first cryptocurrency and was launched in 2008. By November 2013, it surpassed $1,000 per unit for the first time and is currently close to $11,000.
Despite the fluctuations of a market in crisis, the outlook is good for cryptocurrencies. In fact, the renowned pioneer of bitcoin, Adam Back, recently said that the cryptocurrency could increase its market capitalization by 400% over the next two years.
In the same way, other analysts and specialized platforms indicate a possible market capitalization of Bitcoin of 2 trillion dollars.
As if that were not enough, interest in cryptocurrencies has recently reached its all-time high. And this growing open interest reflects that more participants are entering the market: more choice, more diversity, more chance to win.
The best cryptocurrencies to invest
Since there are a large number and variety of cryptocurrencies, many investors wonder which one is better. Following the parameters of the experts, these are the best options currently:
Bitcoin: the first and most popular virtual currency is one of the most stable. It allows you to buy goods and services and even some physical stores admit it as a payment method. This growth will imply an increase in its price, so it is a good option to earn money in the medium and long term.
Ethereum: since 2015, it occupies second place on the podium. The change to Ethereum 2.0 will mean transforming your blockchain and directly affecting its price, so now is a good time to invest.
Ripple (XRP): It has been designed to improve the global economy and its partnerships with large banks, so it has a great future and a rise in value is expected.