Experts Say There’s 1 Big Crypto No-No, but 3 Brilliant Ways You Might Just Strike It Rich
Written by
Adam Palasciano
Edited by
Amen Oyiboke
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Unless you’ve been living under a rock, you’ve probably heard about cryptocurrency, otherwise known as crypto.
According to Investopedia, crypto is “a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.” The majority of cryptocurrencies exist on decentralized networks using blockchain technology, which is a distributed ledger enforced by a diverse network of computers. Crypto is what’s known as decentralized finance (DeFI) because transactions occur without third parties like banks.
The most notorious (and most valuable) crypto out there is Bitcoin (BTC). It’s famous for being extremely volatile–it peaked at over $72K in March 2024, only to fall to less than $60K by August 2024. That’s a significant 17% decrease in just five months.
While investing in cryptos like Bitcoin can seem enticing given the potential for huge profit, there’s one thing experts say you should never do when it comes to crypto investing.
Don’t Rely on Crypto for Long-Term Wealth
CNBC reported that there’s one thing about crypto that you need to keep in mind at all times: it’s extremely volatile. It’s important to treat crypto as a discretionary investment and not to rely on its long-term growth when it comes to your retirement funds.
“It’s important to distinguish between essential and discretionary investments,” explained R.J. Weiss, a certified financial planner and founder of The Ways to Wealth to CNBC. “Bitcoin or other cryptocurrencies should not be the cornerstone of your retirement plan.”
Here are three other ways you might just get rich, according to according to GOBankingRates:
1. Start a Side Hustle
Starting a side hustle to supplement your income is a smart way to get ahead financially. Consider becoming a rideshare driver, delivery person, dog walker, pet sitter, or babysitter. The extra income earned from picking up side jobs here and there will allow you to save and invest more money over time, which can lead to long-term wealth.
2. Invest Early and Often
Investing early and often is crucial if you’re looking to get rich. With consistent investing over time, your money will grow thanks to the magic of compounding. The earlier you start investing, the more time your money will have to grow. While it’s okay to dabble in crypto investing, consider investing most of your money in low-cost index and mutual funds with a track record of steady growth over many years.
3. Build an Emergency Fund
If you don’t have one already, starting and building a solid emergency fund is important in order to be prepared for financial emergencies, and to avoid unnecessary debt. Whether it’s a surprise medical bill or an unexpected car repair, you never know what life might throw at you. As a general rule of thumb, it’s advisable to have at least six to nine months’ worth of monthly expenses saved in cash, more if you can. A solid emergency fund can mean the difference between staying rich in the event of an emergency or becoming poor because you can’t cope with the expense.
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