Why Crypto Investing Is a Great Income Stream for Digital Nomads
Having that liberal streak and desire to live freely is what makes digital nomads early adopters of new technology and some of the most responsible people out there financially wise.
However, to be able to travel the world extensively, you need to have solid income streams. So, no matter if you have a remote job, a side business, or you do affiliate marketing, there’s another great way you can support your travel-friendly lifestyle —crypto investing.
1. What Problems Can Crypto Investing Solve
Living around the world makes banking, transferring money, getting paid, or paying taxes more challenging. The two main financial issues that digital nomads have to deal with are:
- Reconciling international taxation
- Accepting payments in international currencies
Cryptocurrencies are a simple solution to these problems because they are borderless. However, they are risky, volatile, and are still fairly new investment opportunities. But if you believe in diversification and like the idea of decentralized currencies, then crypto investing makes perfect sense.
2. Why Crypto Investing Is a Great Income Stream
The crypto gold rush craze may have toned down, and the uncertainty surrounding cryptocurrencies still makes investing a challenge. But despite all that, the crypto space will get more exciting by the day as new investment opportunities are created that disrupt the monetary system as you know it.
Currently, there are 5982 cryptocurrencies, according to CoinLore. And although coins like Bitcoin and Ethereum take center stage in headlines, there are plenty of other investment options.
More and more people join the crypto community every year, attracted by the possibility of anonymous transactions. If you check out the statistics on blockchain wallet users, you'll notice that the number of users grew from 0 to over 70 million in just 10 years.
The fact that so many people have found good reasons to invest in cryptocurrency, and believe in the usefulness of blockchain technology, shows that the financial system as we know it today is likely to look quite different in a decade or two. So it’s better to go with the change rather than resisting.
Here are other great reasons to invest in cryptocurrency:
- Having a borderless tool that allows you to trade peer to peer
- Benefiting from the deflationary quality of Bitcoin and other digital assets. Because their supply is limited, the coins you have today will likely appreciate in the long run as new people join the network
- Enjoying financial protection from political instability and governmental decisions
- Owning a censorship-resistant currency gives you financial control —you decide how you spend your money without government oversight
- Having the chance to influence how the crypto space evolves over time
These are benefits that fiat currencies don’t offer, so the value of cryptocurrency investing is very apparent, especially for people like you who live internationally.
3. How to Build Crypto Investing Into Your Digital Nomad Life
When it comes to crypto investing, taking small steps and creating good habits is key to success. To start integrating crypto investing into your digital nomad life, here’s a handful of useful advice to help you out:
1. Accept Digital Assets in Return for Your Services
If you have a remote job or a side gig, tell your clients that you'll start to accept payment in cryptos. This is a good way to learn how digital assets work in real life and show your clients that you’re up-to-date with technology trends.
To receive cryptos, you only need to have a wallet that generates a personal QR code. This code is the public address to which your clients can send you the payment.
2. Learn How to Evaluate Crypto Tokens
Luckily, the information about new crypto tokens is available online for you to read and evaluate. But it’s important to take time and learn how to research a token.
Read everything about the crypto tokens —white papers, patents, holders, technology, adoption, etc. Essentially, you want to pick up the skill of knowing how to find value in a digital asset. But be patient, this is a continuous practice and a skill that comes in time.
3. Don’t Worry When You Get It Wrong
Cryptos have become an important income stream for many people, and even the ones who constantly win can sometimes fail. This is because stakes are high, and emotions can trick you. So, when you start investing in cryptocurrency, don't set high expectations for yourself. And when you make a mistake, learn from it, and keep going.
4. Inform Yourself but Keep It Simple
When you start investing in cryptocurrency, instead of getting lost in the crypto advice out there, make a habit out of visiting a few good sources that show you what’s happening in the cryptocurrency market. This way, you know where it's headed, and then you adjust your strategy accordingly. Here’s a few things that you should regularly check:
- On-chain data —when you get an objective view of what happens in the crypto community, you are better prepared for the upcoming events. These are the best indicators of where the cryptocurrency market will go:
- Whale activity refers to what people who own a large amount of cryptos do. Notice if they take money off their cold storage into the exchanges in preparation to sell the coins, or if they are doing the opposite
- Wallet creation reflects the overall growth of the network and how many users a cryptocurrency has. More wallets mean that new users enter the cryptocurrency market, increasing the value of a coin
- Historical price points give you an idea about what are the good entry and exit points for a particular coin
2. Online media data —the crypto space is not just about statistics and numbers, it’s also about how people respond to events. So it’s a good idea to look at the topics trending on social media accounts or Reddit. This way you gain insights into what topics are gaining popularity, and what new tokens are created.
It’s Never Too Late to Get Started
We hope that, after reading this blog post, you’ve gained more confidence, and you are ready to start investing in cryptocurrency and create another income stream. This activity requires you to put some thought and time into it, but the result is gaining more financial freedom and greater flexibility in your travel-friendly life.
If you stumble along the way, don’t hesitate to seek help. It’s better to ask a naive question than getting stuck or investing money only to lose it quickly. So find reliable mentors and courses to guide you in your journey with Bitcoin & Digital assets.
