How do I keep my money safe with bitcoin

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This is an opinion editorial by Konstantin Rabin, a finance and technology writer.

Good ol’ bitcoin, the granddaddy of cryptocurrency, is being used as a reliable store of value for those looking to move away from more established asset classes as it continues to position itself as a solid hedge against inflation. Proving as.

In fact, it’s something I’ve been doing for some time now and, in this article, I’ll explain why I allocate a portion of my assets to bitcoin and how I use it to preserve the value of my net worth. How do I see it as ideal?

Why allocate a portion of your wealth to bitcoin?

Despite the volatility and fear being spread when talking about bitcoin as a revolutionary investment vehicle, there is much to be said about why it is a legitimate contender in this market. It should be noted that no investor worth their salt would ask you to put your life savings into crypto, but for those looking for long-term returns or preserving a portion of their wealth this way is very important. There are more possibilities.

Let me mention some of these advantages that make this investment in bitcoin worth a more in-depth look:

• Alternative Store of Value: Bitcoin is as good as it gets when looking for a store of value outside of third party manipulation. Being decentralized means that it bypasses many of the red-tapism aspects and fees that come with leaving your money in the hands of financial institutions. As a result, it is not subject to the same inflationary pressures that are prevalent with companies operating in a government-controlled fiat currency system.
• Potential for Long-Term Growth: There is no doubt that bitcoin’s value is extremely volatile in the short term, but its long-term trend has historically been a fairly bullish affair. thoughts of Hodling Here’s where it comes into play, because you’ll really only see the true value of your investment when ignoring the spikes and holding on for dear life.
• Diversification: As I said earlier, investing in bitcoin doesn’t mean putting all of your hard-earned eggs into the chaotic basket that is crypto, but it does provide some much-needed, future-oriented diversification to your investment portfolio. can do. As Bitcoin price is becoming increasingly uncorrelated with traditional assetsLike stocks and bonds, adding some of these digital coins to your portfolio can help spread the overall risk your investments may face from the old guard. In fact, what we’ve seen over the past few years is that bitcoin has become a new kind of quasi-safe-haven asset class that many investors are flocking to at a time when old-school investment vehicles and fiat currencies come under pressure. .
• Accessibility: It goes down two lanes. Aside, Investing in bitcoin is getting easierWith multiple platforms and exchanges now offering a simple and secure way to buy and hold your BTC; While at the same time, it has never been easier to liquidate this asset and have fiat cash on hand when you need it. This is a moot point on the stock, bond or real estate markets, which always suffer from liquidity issues; Especially in times of massive financial volatility.

In the long run, spending a portion of your income on BTC is unlikely to make you poorer. On the flip side, allocating nothing to BTC can ruin your prosperity, especially in these uncertain times when Banks can collapse without warning, Inflation continues to rise And many countries saw their fiat currency turned into toilet paper.

Why don’t I buy or mine BTC

In the quest to obtain bitcoin, there are always the obvious channels of hitting up a cryptocurrency exchange or some form of peer-to-peer marketplace and just exchanging fiat for BTC. While there is nothing wrong with this approach, and it may be the easiest and perhaps the only option for many people, in my humble opinion, it is not the best way to get your coins to conserve money.

You could go the miner’s route instead and spend a big fortune buying all the equipment needed to get some BTC that way, but in this day and age Average mining cost per coin exceeds $30,000 in many countriesThere is a high probability that you will get nothing long before you mine your first coin.

So, what would I suggest? earn it.

Sure, not everyone can persuade their boss to pay them in bitcoin, but these days, many people have an extra hustle that can easily be employed in generating some digital finesse. Five years ago, providing your customers with the ability to pay for your services in crypto was a non-existent concept, but Today, it’s a no brainer, Right now, a huge number of my clients, especially those working in the online world, are actually paying for services through crypto. While most of them prefer to use stable coins like USDT, you can easily flip these over to BTC and padding your bitcoin wallet.

Another notable online activity I do to hoard some BTC is for kids over the age of 18 only. No, I don’t mean OnlyFans. I do some work in and around the gambling industry and do a little gambling myself from time to time, but I gamble solely for BTC.

Bitcoin Betting Sites Gaining Traction LatelyThanks to their ability to protect privacy, offer deals (eg, bonuses, commissions, etc.) and a general improvement over the annoying bureaucracy inherent in fiat betting sites. Obviously I don’t recommend gambling to anyone, but it is something I enjoy occasionally, like when my favorite UFC fighter jumps into the octagon, because it adds a little excitement when watching a fight , and of course, the winnings add up to my wealth-preserving BTC fund.

my btc wealth protection strategy

You must be wondering why I am emphasizing on bitcoin and not paying much attention to the rest of the crypto pack. frankly, as Most of the top coins are following bitcoin price like a donkey chasing a carrot, I generally don’t diversify things or allocate part of my crypto investments to other major coins and tokens. Don’t get me wrong, I believe some cryptocurrencies are useful, but, since bitcoin drives the value of many of the top dogs on the list, sticking with BTC as my investment coin makes sense. (For those who are willing to diversify into other crypto projects, I have one piece of advice; stay away from memes and shincoins,

Now, let’s get down to business. Here is my advice for preserving wealth through bitcoin based on my own strategy:

• Plan: Whether you’re investing with fiat currencies you earn from working a day job or getting paid directly in cryptocurrencies through your own projects, make sure you have a well-defined goal. . Set some fixed annual or quarterly amount that you want to achieve and do your best to make it happen.
• Don’t panic: Always work on increasing your BTC holdings and be ready to HODL until Kingdom Come. Don’t pay too much attention to fiat value and don’t be afraid to sell as you see some of those crazy price swings that bitcoin is so famous for. Comparing exchanges and cryptocurrencies is all well and good, but don’t obsess over where the BTC price is sitting. Short-term dips are bound to come and go, but if you believe in BTC as much as I do, you can rest assured that your assets are protected. Keep in mind that there is only 21M BTC available as of now. Since it is a finite supply and The world population is close to eight billionWith more people being added every day, this asset is sure to increase in value over time as more governments and people catch on to this new change in finance. If and when fiat finally shuts down completely and bitcoin takes over as the dominant currency, the average BTC per capita in the world is going to be around 0.0025, and you’ll definitely be in the top 5% holding it. want to stay
• Keep it safe: Bitcoin is digital, and hackers are always on the lookout for people who aren’t keeping track of their money. Therefore, in order to keep my funds safe, I keep all my bitcoin holdings in a secure location in a hardware wallet. There are lots of good exchanges and hot wallets to choose from, but if you’re serious about preserving your funds, keep it cold, keep it offline.

Why you shouldn’t wait to diversify

Allocating a portion of your wealth to bitcoin can be an effective way to preserve and even grow it, but as the saying goes, “the best time to start is tomorrow, the second best time.” Is there now.”

don’t wait for BTC will reach $50,000 Before you suddenly wake up and start buying. Make a plan today and start diversifying your portfolio in this future-proof asset class, so you know your money is safe no matter how bad the government gets.

This is a guest post by Konstantin Ribon. The opinions expressed are solely his own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.