Since the introduction of Bitcoin in 2009, investors have been pursuing this form of currency proactively. This, in turn, has undermined the flaws of the segment to some extent.
However, for the same reason, we have also understood the prime value proposition of the same – the independence from mainstream, regulated, established systems.
If appropriately used, Bitcoin can, indeed, help you achieve financial freedom to some extent. Nonetheless, for that, you will need to understand the core value of the market and strategize your steps accordingly.
Hopefully, the following guide can help you out with it.
What Is Bitcoin?
Let’s be honest.
If you want to earn high yields on Ethereum or Bitcoin, you have to learn about the same as closely as possible first. As we are focusing on the latter through this article, let’s talk about BTC in this section.
Bitcoin, in essence, is a decentralized currency that was created in the year of 2009. It followed an idea set out by Satoshi Nakamoto, a mysterious individual whose real name is yet to be unveiled.
BTC works pretty differently than our traditional currency system. For instance, it promises to offer payment at a lower transaction fee than the conventional online payment mechanism. Additionally, it’s also operated and segmented by a decentralized authority.
Therefore, you don’t have to pay taxes or anything as such with it.
How Does Bitcoin Offer Financial Freedom?
As the title explains, Bitcoin can, indeed, offer financial freedom to an investor. Hence, with it, you will not have to make amendments for any government, make any additional payment, or anything else. But, the benefits of BTC go far and beyond the aforementioned prospects.
Here’s what you need to know about it.
Benefit – 1: Does Not Require Any Permission
If you want to use traditional currency, you’ll have to get permission from the government, bank, or any other financial institution. However, the same does not apply to Bitcoin at all. It’s free and, therefore, can be used by anyone and everyone.
Benefit – 2: Immune To Seizure
Unlike conventional currency, you “own” the Bitcoins you have invested in. It is not housed by any organization or institution. Thus, no one can confiscate it from you, no matter what their reason is. Being your own bank is the primary advantage of Cryptocurrency.
Benefit – 3: Decentralized
According to reports, there will be around 21 million Bitcoin available in the world. Also, due to being decentralized, no one can recreate them or anything. Therefore, the scarcity of the same makes it pretty much deflationary to its core.
Benefit – 4: Resistant To Censorship
Bitcoin, in essence, is being created by a specific computational algorithm known as PoW or proof-of-work. Hence, it will be impossible for anyone to censor or block your transactions from the get-go. This rule is applicable to each and every viable Cryptocurrency platform.
Benefit – 5: Open Source
Unlike traditional currency systems, Bitcoin is an open-source program. Therefore, you can even contribute to developing or creating BTC in various areas. Nonetheless, for that, you will need to be efficient in using blockchain technology.
Benefit – 6: Offers Anonymity
When you are working with BTC, there’s no need to offer your name, email, social security number, or anything else. Thus, if you are using it correctly, Bitcoin can, indeed, be utilized anonymously – both for trading and transactional purposes.
Benefit – 7: Can Be Paid
Yes, you have understood it correctly – Bitcoin can definitely be used for paying something to buy a product or service. In the future, you will also be able to purchase everyday offerings, such as coffee, rice, electronics, food items, etc.
Benefit – 8: No Requirements
There is no need to create any certification or anything else to start your journey in the world of Bitcoin. You can buy or sell the same as long as you have a working internet connection on your phone or computer. You can use a BTC credit card now for transactional purposes.
Benefit – 9: Cannot Be Stolen
Yes, it’s true that a hacker can hack your account and take all of your Bitcoin from you. However, if they don’t have any access to your wallet, it’s impossible to steal or replicate the BTC you have. Also, the security efficiency of Bitcoin is much better than usual.
Benefit – 10: Absolute Transparency
Each and every detail regarding the money supply of Bitcoin is available to view on the blockchain technology. Therefore, if you make even a single payment, you will still be able to check the same out evidently. However, the personal information of the user will be hidden.
How Do You Create A Strategy For Bitcoin?
Earning Bitcoin can be a little tricky, primarily due to the volatility of the market. However, if you want to have that financial freedom, we’ll ask you to create a proper strategy and take a bit of risk. Hopefully, the following tips can help you out with it.
- Keep an eye on the Bitcoin chart to know about the ups and downs in the market. This way, you’ll understand when to invest your money purposefully.
- Diversify your money or investment in different stocks. If you end up losing your BTC from one front, you will surely win something from the other.
- Stay updated with Bitcoin by following Bitcoin news and checking out technical analysis. Using stop-losses can also be beneficial in this aspect.
- Follow the trading times of Bitcoin as closely as possible. This way, you will be able to invest at the right time and earn a massive amount of profit altogether.
The Bottom Line
Bitcoin, unlike the traditional finance system, is, indeed, much more flexible and efficient. However, if you want to make the most out of it, you will have to create the perfect strategy from scratch. Aside from this, we will also ask you to follow Bitcoin-related news to learn about the market and its problems properly. If you want, you may also take the help of a professional who has been working . Hopefully, it’ll all work out in the end for you.