The year 2023 is promising to be one full of not only surprises, but also horrors and cataclysms on a global scale that were not witnessed within the last hundred years. The reasons behind such forecasts given by experts and analysts reside in the fact that the existing system of international affairs has decayed and collapsed under the weight of its own imperfections. The systemic flaws that have plagued the international financial system are becoming apparent at frightening pace as hundreds of banks are going bankrupt and financial systems that were deemed perfect and unshakable are starting to beg governments for bailout money.
Many average people are wondering whether the reasons for such a condition in which the global economy is currently languishing started in 2008 with the crushing mortgage crisis. But the reality goes much deeper, since the crisis actually started when the United States Dollar was adopted as a global reserve currency. Given the fact that the Dollar is not backed by any collateral, other than its self-appointed status, the currency can be printed without any supply cap, making inflation and even hyperinflation a reality. The ensuing consequence is devaluation, which is currently affecting the United States Dollar and is resulting in the collapse of numerous banks.
With such a dreary forecast arrayed against average people, the question they are begging to have answered is how they can make money in such an economic environment. The answer lies in the alternative global economy – the digital economy established on the basis of blockchain technologies that have given people access to cryptocurrencies.
How to Make Money With Cryptocurrency in 2023
The cryptocurrency space offers many opportunities for making passive income and direct trading, just as it had since its inception in 2017 with the ICO boom. And though since then the ICO phenomenon went downhill, new opportunities have arisen that given users ample options for making money with digital assets, namely:
- Decentralized Finance platforms;
- Liquidity pools;
- Non-Fungible Tokens;
- Trading.
One important way to make money with crypto is accepting their volatility. It is true that volatility means high risks, but if you are among those who are afraid of losing funds, you can always stake your cryptocurrency on any of the myriad platforms that inhabit the industry. This way of making money with crypto is relatively safe and does not require a high entry threshold, allowing users with any amount of capital to enter platforms and stake in return for passive income.
Platforms that offer decentralized finance services are very popular in the cryptocurrency space for their relatively high returns. However, users must remember that such ways to invest are connected with risks that can extend far beyond volatility. Hackers routinely attack such platforms and disconnect buy and sell options as they infiltrate funds storage wallets and steal the assets there. If users are afraid of leaving their assets unguarded on decentralized finance platforms, they can always exchange for other options.
Trading is an important type of investment that relies on leverages volatility instead of avoiding it. If users have decided to invest in cryptocurrency, they will have to start learning about fundamental and technical analysis to make the most of trading, instead of just relying on the banal buy low and sell high approach. Crypto is far more than just buying and selling, since it can be used within Web3 space. Any app worth its salt in decentralized space will offer users the chance to buy some form of cryptocurrency and leverage the possibility of using it as a means of payment or investment.
Key Takeaways
The world is changing and the traditional system of finance we have all grown used to will collapse, it is inevitable, since the systemic flaws have finally reached a breaking point. Analysts believe that the resulting world will leverage new financial and technological opportunities, such as blockchain-based transaction processing, which will allow users to make entry into new platforms and instruments that will give broader opportunities for investment without the tethering to the United States Dollar. With that in mind, we should prepare for a world where cryptocurrencies are a norm, not an exotic investment that many still regard as a dangerous game with volatility and depreciation risks.
