Stop trying to get rich with crypto, focus on getting wealthy.

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Stop trying to get rich with crypto, focus on getting wealthy.

First, let me differentiate the two terms:

Rich means you have a lot of something. Whether that means your paychecks are big or you found your old keys from when bitcoin was $1, your supply isn't growing because you're either giving up your time and labor to generate it, or you're not buying anymore bitcoin. Instead, you'll probably go out and buy a Lambo.

Wealthy means you are financially literate and you can make your assets generate your wealth for you. This should be your goal for financial freedom. Imagine spending your money on an asset that gives you returns. This is like buying a mechanic shop where the rich guy pays your shop to work on his Lambo.

Now that we're on the same page, let's talk about how you can get wealthy using crypto.

  1. Staking – This is great for two reasons: you get more coins after every period of time, and you're using your coins to help the network stay up. If you have your coins in a cold wallet, it's not making you more of the coins. In other words, your coins are not working for you. The value of your wallet is at the mercy of the market.

  2. Lending – There are crypto lending services, sometimes built into exchanges, where you can lend your coins for a set return. This works like a high yield bank account, with rates around 8-10% APY.

  3. Mining – This is pricy up-front, and requires more technical knowledge, but this is basically converting your electricity to crypto. You should calculate your cost and returns to make sure you'll always profit, but this means you'll have extra coin for the two options above.

Just understand that crypto is a volatile market and there are always risks. Just wanted to give that disclaimer, but you should already know that because you're smart.

This is getting long, and I'm getting sleepy. Happy Friday!

submitted by /u/ogonga
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