We can all agree to say that financial stability is, in some way, a goal that a lot of us share. Being financially stable is probably one of the best ways to achieve peace of mind and ensure that our futures are, to a certain extent, secured.
A lot of people believe that money is not capable of buying happiness, but money is capable of granting comfort, and it definitely makes it easier for some people to achieve happiness while being financially comfortable.
That being said, there are a lot of philosophical currents that portray the idea of happiness as something that should be achieved regardless of material capabilities, and they claim that without achieving happiness without less, it won’t be achieved with more.
Accepting the Need of Money and Retirement Plans
Regardless of the difference in opinions society might come up with when it comes to financial stability, there is a hard truth that a lot of us have to accept: at some point in our lives, earning money will be much harder. We are all slaves of time on some level, so make sure that we are financially stable to face time when we reach senior age is something that can ensure our peace when we are no longer capable of working.
That is where retirement plans enter the play. A retirement plan is something that can be used during our senior age to ensure our financial stability, to the point of being capable of affording our lifestyle and needs. There are many ways of engaging this aspect of finances, but one that has been gaining a lot of popularity is the idea of investing.
As showcased over here, investing in the financial approach of putting money into something to earn a profit. There are various ways in which someone can invest their money, but contrary to saving, most investments out there tend to have a certain level of risk in which someone will not generate any profit at all.
However, investing tends to generate a much larger amount of money over time than saving, which is the reason why a lot of people take some of their saved up money to invest. Now, as mentioned earlier, there are multiple ways to invest your money, but one, in particular, is getting a lot of attention: Cryptocurrencies.
Understanding the Basics of Cryptocurrencies
Cryptocurrencies are considered a type of digital currency that can be used in a wide variety of ways. Although there are various types of cryptocurrencies, most of them rely on a technology known as the blockchain, in which information is processed by multiple terminals in a way that makes it impossible to be tracked or centered, thus, granting a lot of freedom and privacy when it comes to its uses.
The whole deal with cryptocurrencies is that they are mostly perceived as a form of investment, and can generate a large amount of profit, but only because they are a form of investment that is considered fairly new and is heavily reliant on its volatility.
Since they are highly volatile, an investment that was done one day can generate a large sum of wealth after some years, even months, because multiple cryptocurrencies rise their own value due to several circumstances.
This makes it a very attractive form of investment for people, but a lot of people then mistake its nature and don’t understand how its flow of value is a risk for their adventures.
The Risks of Cryptocurrencies
Just like it is very easy for people to earn a considerable amount of money through investing in cryptocurrencies, it is also fairly easy for investors to lose money on them. The biggest some people have with this specific type of digital currency is that they can be easily influenced by media and people.
A very good example of this is how, not too long ago, the value of the most popular cryptocurrency of the world, Bitcoin, increased considerably, reaching a price of more than $50,000. This was caused by an incredible investment done by Elon Musk that surpassed the billion dollars.
Although Bitcoin has gotten again to $50,000, there was a time where it dropped to $30,000, and a lot of people lost money because of it.
Engaging the Journey with the Right Mindset
The problem most people make is that they approach the adventure without considering the risks, and they only think about the possible wealth they could achieve.
Cryptocurrencies are very complicated and provide a large number of options for people to experience how they work, and what it is like to invest in them. For example, earning PKT can be done through the use of a device, and nowadays there are even video games that, with an investment, can provide people with digital currencies for them to sell.
The thing is that, regardless of the option you choose, you will still have to research quite a lot and understand how those options develop themselves in the current market. Although this won’t ensure that all your financial journeys will be successful, it will increase your chances of generating a profit.
Another thing is that you should never, under any circumstance, venture into an investing adventure with money that you absolutely need for your survival. Investing is something that should only be done with the money that you are not afraid of losing.
Ideally, you should perceive your first investments as a learning experience, especially when it comes to cryptocurrencies. Also, it is well known that they are becoming an incredible way of long-term investments, which is the reason why some people are using them as a form of investment for their retirement plans.
Of course, they can still be used for short-term transactions, and in fact, it is possibly the way in which most people engage them, seeking profit, and being afraid of loss. But, because of the history behind Bitcoin, a lot of people concluded that investing in cryptocurrencies is something better done for the long term run.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.