Passive income is really trending among millennials as it allows them to afford more than what living paycheck-to-paycheck generally does. And lately, a lot of people have been trying to understand passive income and make a hefty amount of it themselves.
Among such a passive income perspective, one of the most glaring examples of passive income in the recent past has been cryptocurrencies and its fame seems to grow increasingly.
What are cryptocurrencies?
Cryptocurrency basically is an internet-based medium of exchange that uses cryptographical functionalities to conduct financial transactions over the internet. They are considered to be better than its rivals – blockchain – as cryptocurrency is decentralized, transparent and quite more stable.
How Cryptocurrency helps you make money?
When you venture into cryptocurrency you would be familiarised with buying and holding cryptocurrency as it is the most reliable form of investing in cryptocurrency. The idea is the same behind cryptocurrencies; you buy them like some kind of an asset (like when you buy stocks), you let it sit and let interest build up and when the time is right, you cash them out.
A glaring example of this was in 2018 when people who purchased bitcoins in 2013 for merely $13 reached a peak price of nearly $20,000. There was roughly a 1500× increase in return on investment.
And on the other hand, if the cryptocurrency seems to underperform, you are under no obligation to sell them off. You can hold onto them longer until you see a price range that benefits you.
Millennials are holding day jobs and living paycheck-to-paycheck is not considered fun anymore. With cryptocurrency by your side, you are more likely to live better.