They say living a life with no risk means you haven’t lived well enough, so does that mean living an all-risk life is the way to go? That sounds good enough if you answer your first question, which is:
“What if I Fail?”
Failure is inevitable, but you reduce your chances of failing at something if you take a calculated risk. So talking about Crypto, is it a calculated risk or a wild one? Let’s evaluate.
Cryptocurrency is tempting, especially for the latest generation, but is it worth it? Is it worth risking a setting that can protect your future? At this point, you can either live with your 9-5 job or take a risk, retire early, and invest in Crypto.
Investing in Crypto and keeping it as the only source of income would mean that all profits are yours and all losses are yours as well. This would also mean that it cannot be seen as a risk anymore because it is your only income mode. You could, however, take a calculated risk with Crypto and retire early.
See, retiring early and keeping Crypto as the only source of income is fundamentally playing with fire. Two things happen when you play with fire:
- Either you crash and burn
- Or you bring in another hoop of fire.
Humans are destined to live. We know the keys to survival, but once we realize that life is more about creating ways to enjoy life rather than endure, the consequences of taking risks suddenly feel a lot less.
Let’s have a look at the repercussions that can happen if Crypto’s all you have and what might happen if even that slips out of your fingers.
The Deal With Crypto
Crypto’s the up-and-coming jazz! Yes, sure, it is good money. It can also be a substantial source because you invest in it now and years later; when you’re settled and require money, you can pat your past on the back, take that money out, and use it. But there is one problem, how can you be sure that this amount will sustain till then? And more so, will it be as beneficial as you think it might be?
Volatility
Cryptocurrency works on impression. The impression of Crypto is directly proportional to its market value. Crypto is volatile and what is volatile is a risk, provided you have a backup. This is how it works: you buy your bitcoin in dollars, and dollar crashes, you will not be able to trade your bitcoin. Your bitcoin value will subsequently drop as the dollar rate collapses.
These factors can be either on your side or against you because you can’t tell what’s going to happen when.
Let’s say you retire early after investing everything in Crypto. You take a full-fledged vacation and party like there’s no tomorrow. Two days after you come back, you realize your cryptocurrency has crashed. What do you do? Can you handle the outcome? Can you still put as much faith in it again? Will you be able to start from scratch?
Fraud!
Traditional theft
Traditional Theft regarding cryptocurrency means crypto criminals can potentially hack into their investors’ crypto wallets and steal their currency. Crypto criminals then set up fake wallets to bilk counterparties and fraudulent crypto exchanges to steal money from customers smartly.
Tech-preneur
Elon Musk recently gave a statement saying that Tesla was up for purchase via bitcoin. This made the public think that Bitcoin is gaining value and its worth is increasing. Sometime later, Musk took back his statement and dumped a percentage of his shares.
Reality
Preferably, invest in Crypto. It does have its benefits, but the risk is only good enough if it’s an intelligent risk. Every decision in life, big or small, is based on consequences, the understanding of handling potential repercussions, and the acceptance that at any given point in time, it can take a wrong turn because the results are beyond your control.
Playing with fire is tempting, but you ought to make sure that you don’t get burnt.
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