The Future of Cryptocurrency In Personal Finance – Irish Tech News – Irish Tech News
There are very few people who would decline wealth if it was handed to them. But to be financially comfortable, most of us will have to put in some work. We’re also going to have to take risks and adapt to changes in finance.
Cryptocurrency is one of those changes in the financial industry that will require you to take risks to reap all of its benefits. If you’re considering investing in cryptocurrencies, you’ve come to the right place. Here’s how to use cryptocurrency to build personal wealth long-term.
It’s important to know the ins and outs of cryptocurrency, starting with its evolution over the years. Bitcoin was the first-ever cryptocurrency with a starting price of $0.08 in 2010.
Fast forward to today, Bitcoin is a little under $30,000. It hit a record high price of around $68,000 in 2021. It’s also just one of over 10,000 active cryptocurrencies. The market is volatile, and there is still much more to learn about cryptocurrency, but it doesn’t seem to be going anywhere.
Educate yourself on the following regarding cryptocurrency as well to ensure you’re making informed investment decisions:
— Cryptocurrency vocabulary
— The difference between digital currency and digital assets
— The various kinds of cryptocurrency
— Any regulations you should know about
— How to keep proper records of gains and losses
— How to report cryptocurrency on your taxes
— Market volatility
— Prices and exchange rates
— Cryptocurrency trends
As you familiarize yourself with the ins and outs of cryptocurrency, teach your children more about it as well. Investing is crucial to their future financial health. If you’ve got teenagers, they’re likely familiar with cryptocurrency. Open a custodial investment account for them and one of your own. That way, you can invest in cryptocurrency together and help them secure their financial futures.
You can also enlist the help of a financial planner to learn more about cryptocurrency and how to best include it in your investment portfolio.
It’s a brilliant idea to bring in a financial planner to help with your cryptocurrency investment decisions. Financial planners can help you develop an investment plan that includes cryptocurrency. They can also ensure you’re abiding by any laws and regulations regarding this.
Research financial planners in your area who specialize in cryptocurrency. Then, schedule a consultation with your favourite three. And see which one meshes with you and your personal finance goals the most.
Be sure you’re continuously assessing your financial situation as well.
Your financial outlook is going to change over time. You may be able to start with a hefty investment in cryptocurrency. But a job loss, new business venture, expanded family, or another life change can quickly alter your investment commitments.
So, it’s essential to assess your financial situation continually. It’s also crucial you get used to adjusting your investment amounts to fit your budget at any given time. It’s better to lower how much you invest in cryptocurrency than stop your investment entirely.
Set short and long-term financial goals too. Your budget may change, but having something to strive for can keep you invested in the cryptocurrency game.
For example, let’s say you want a brand new car. Saving for a down payment can be one of your long-term goals. You can use your cryptocurrency wallet to automate a certain amount of your down payment savings each month. As a result, you’ll grow your assets in two ways: with the cryptocurrency and, eventually, a new car.
Diversifying your investment portfolio should also be one of your goals. A diversified investment portfolio is a key to wealth. So set a goal to balance crypto with other investments like stocks, bonds, mutual funds, and retirement options.
Intentional cryptocurrency purchases are just as crucial as the purposeful financial goals you set.
Take as much time as you need to research what your first cryptocurrency purchase will be. Factor in the budget you’ve set for investing in cryptocurrency, the companies that offer it, and exchange rates.
Once you make your first purchase, commit to investing in crypto consistently. This could be weekly, biweekly, or monthly. And live by the phrase: “Don’t invest anything you aren’t okay with losing.”
Although it’s only a handful of companies, consider using cryptocurrency for purchases where it’s accepted. Reading about how cryptocurrency evolves in the business world is one thing, but experiencing it is another.
Find a brick-and-mortar store or online retailer experimenting with cryptocurrency payments and partake. It can give you a new perspective on the future of this digital currency, which can positively influence your investment decisions.
Also, some companies are paying employees in cryptocurrency. It’s a bit risky because, as stated above, very few companies accept cryptocurrency as payment. So you’ll likely need to exchange your cryptocurrency salary for fiat currency. But it could be another way to open your mind to how cryptocurrency may fare in the future.
Cryptocurrency has made so much of an impression that it’s engraved itself in the future of personal finance. Use the tips above to build your personal wealth with it in the most informative, fun way.
Irish Tech News are Ireland’s No. 1 Online Tech Publication and often Ireland’s No.1 Tech Podcast too.
You can find hundreds of fantastic previous episodes and subscribe using whatever platform you like via our Anchor.fm page here: https://anchor.fm/irish-tech-news
If you’d like to be featured in an upcoming Podcast email us at [email protected] now to discuss.
Irish Tech News have a range of services available to help promote your business. Why not drop us a line at [email protected] now to find out more about how we can help you reach our audience.
You can also find and follow us on Twitter, LinkedIn, Facebook, Instagram, TikTok and Snapchat.
Cryptocurrency
Follow Irish Tech News