The Path to Financial Independence Through Crypto Currency

I have been chasing financial freedom for a few years now. It is one of those things that once you start learning about you just get sucked in and can't get out, much like crypto and De-Fi. The concept of having enough assets accumulated to pay all of your living expenses without working seems like the ultimate financial goal. Once I reach that I can focus on every other aspect of my life knowing I don't need to worry about finances ever again. The best part of financial independence, however, isn't the finance but the independence. It gives you the ultimate freedom, you never need to do something someone tells you to do unless you want to do it out of your own free will. That is incredibly valuable and is probably the greatest gift money can give us.

Anyways, enough about the concept of financial freedom, let's talk about how powerful crypto is for progressing towards financial independence.

The typical financial system does allow us to reach financial freedom, however, it takes decades of compound interest and consistent saving and investing. Of course, that is a great strategy and one we should all try to implement. However, crypto and De-Fi allow us to rapidly accelerate this process.

In this article, I will go through 4 main reasons crypto is allowing everyday people to build incredible wealth quickly and reach financial independence at an unheard-of pace.

Let's get started...

Inflation One of the biggest reasons crypto is so valuable is inflation. When it comes to building wealth, if you store it in fiat or investment with fiat currency the problem is your wealth is consistently chipped away year after year by inflation. Especially with all the stimulus and "helicopter money" we have seen in the pandemic, it is much harder to build wealth when the supply of money is constantly inflating against you.

The beauty of crypto is that the more fiat money there is in the market, the more value crypto has when denominated in fiat. This means the more the governments try to inflate away our purchasing power in fiat, the more they increase the purchasing power of our crypto. While inflation eats away at wealth in fiat, it increases the value of wealth stored in crypto. What this means is crypto allows us to take the biggest enemy of wealth generation and turn it into our strongest advantage.

Value Appreciation So the first large benefit of building wealth in crypto is how masterfully it avoids inflation. The most obvious and most powerful benefit is the incredible value appreciation crypto is achieving. While a good annual return in the legacy finance world is anything above 10% a year, in crypto a good return is your value doubling multiple times per year. Even if your money just doubles once per year that is unheard of rate of return anywhere outside of crypto. Of course, these assets are inherently more risky and speculative, but they are getting less and less so every year and especially as institutional money enters the space as it has been doing quite quickly now.

Compounding wealth at the rates crypto has achieved can catapult someone even with very little starting funds today into enough to reach financial independence in under a decade. If you make smart moves, are constantly adding to your stockpile, and use some of the other strategies in this guide, you can reduce that to under 5 years and that is still on the conservative side! Many people in the community who started small have become financially free in a matter of years instead of decades. It is still early in this space and opportunity remains abundant.

It seems this new world of decentralized finance is shattering the world's previous notions of good annual returns. When less money is taken by large institutions and middlemen there is more for the little guys like us. Also, the fact that we are all still very early adopters in this space leaves tons of room for huge growth. If Crypto achieves the expectations much of the world has for it now, like taking over a large part of the financial system, replacing forex markets, and replacing gold as a store of value, we still have an obscene amount of growth ahead. Getting in on the ground floor has rewarded many already with incredible growth and value appreciation, and if things continue the way they are currently headed there is still plenty of massive gains to go around.

Interest & Staking The above points outlined how great crypto is to store your wealth and compound it very quickly, the question then is what to do with the great nest egg you have built?

Earn interest with it of course!

Nothing is better than a great store of value, compounding rapidly, that pays you interest monthly. There is quite literally no better path towards financial freedom through passive income.

There are two different ways to achieve a payout return from your crypto, staking on protocols and earning interest in centralized lending accounts.

Staking on protocols is often decentralized and makes you much more involved in the growth of the protocol and the crypto community. This would be something like staking Cardano in your Daedalus or Yoroi wallet or staking Polkadot through its staking protocol. Many new cryptocurrencies offer to stake and provide pretty solid APY as a reward.

Check out StakingRewards.com for an overview of the most popular staking protocols and their respective APYs.

The other way to earn interest on your crypto is by storing it in a centralized company and allowing them to lend it out for APY rewards paid to you. Services like BlockFi, Celsius, and Nexo offer crypto savings accounts that pay you interest monthly, weekly, or daily directly into your account. You can earn your interest in the same currency as you have deposited or in the coin of the company such as Nexo coin or Cel coins. BlockFi also allows you to earn all your interest in a currency of your choice.

While this is inherently more risky than storing coins yourself in your wallet. It could be worth the risk if you get to compound your crypto as it increases in value. This is also a great way to make passive income off of your crypto nest egg. You could pair this with a crypto debit or credit card like the Binance card or Crypto.com card and use the interest you earn weekly to pay your bills or to spend as fun money.

No matter what platform you use, or whether you compound your Crypto constantly or use this passive income as spending money, we can all agree earning money with no effort is a great thing. With rates above 5% and up to 12% on some stable coins, earning interest on your crypto has never been better. This is one of the most powerful ways to not only compound your crypto wealth but to live off of it too!

Earning Crypto Not all of us can afford to constantly be pumping our fiat currency into crypto in hopes of accelerating our way to financial freedom. The beauty of crypto is the abundance of ways to earn crypto completely free! Tons of people have made fortunes from crypto they didn't pay a dime for.

Whether it be from airdrops, marketing campaigns, affiliate marketing, or using decentralized social media, there is no shortage of ways to earn free crypto. The more involved and deeper you dive into the crypto space the more opportunities you will find for free crypto.

Using new protocols and Dapps right as they begin often results in free rewards for original users, such as airdrops. There are also tons of websites offering small amounts of free crypto if you watch some short videos to learn about a currency.

These are both great ways to get started earning some crypto on the side, however, if you want to create a real source of crypto income you can dive into affiliate marketing and decentralized social media.

Affiliate marketing is quite simple, you just share your referral link to your favorite crypto platforms like Coinbase, hive, BlockFi, etc. Any service you use for crypto that has referral rewards. You can start by getting your friends and family into De-Fi and sending them your referral links and codes to sign up. You often get anywhere from $10 to $100 for anyone who signs up from your links which is a great way to jumpstart your portfolio.

You can also scale this operation up by creating some crypto-related content on the internet and linking your referral inside it. Make sure you are providing value and not just shilling for referral links though. A great example is writing an article comparing services, like BlockFi vs Celsius with a link to each that gives you a bit of a kickback.

Another great way to make some crypto income is to dive into the world of decentralized social media. Platforms like Hive, Publish0x, PeakD, Leofinance, read.cash, and Dbuzz offer rewards for not only posting popular content but for upvoting and being involved as well. This is only scratching the surface of this whole industry but they are a great place to start and you can certainly build a great stream of income as well as a following.

Nothing is better than getting rewarded in crypto for reading and writing about the things you love! I'll be sure to include links to these services below so you can get started right away. It doesn't hurt to check them out and I am sure you won't regret getting started in this awesome new world! Social media is evolving and being early adopters can pay out incredibly for those who are passionate.

I hope you enjoyed this article outlining the main reasons reaching financial independence through crypto is so exciting! Get started today no matter how small and I'm sure you will look back in a few years and thank yourself.

I will be writing many more articles about this topic as well as about Crypto and De-Fi in general and am thrilled to get to share my insights with you all.

As always, thanks for reading and I hope you enjoyed!

Posted Using LeoFinance ^Beta