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Is it attainable to attain monetary freedom with Bitcoin?

During the last 14 years, buyers bought interested in Bitcoin (BTC) for a lot of causes— from fixing a flawed fiat financial system and reaching the unbanked to diversifying portfolios. Nevertheless, a big portion of most of the people sees Bitcoin as a gateway to monetary freedom amid rising fiat inflation and geopolitical uncertainties.

Conventional banking programs have, again and again, served as a device for centralized governments to dictate monetary entry, particularly throughout dire conditions. Most not too long ago, the Ukraine-Russian struggle served as a case examine for how cryptocurrencies helped the displaced and the unbanked entry funds for primary requirements.

As supposed by the creator Satoshi Nakamoto, Bitcoin goals to deliver energy again to the folks. Which means that no quantity of rules, sanctions or bans can cease one from utilizing Bitcoin as cash. Past that, a calculated funding in Bitcoin has the potential to deliver one nearer to attaining their dream of economic freedom. However how does one try this?


The large volatility of cryptocurrencies coupled with the restlessness of an investor is a recipe for an prompt loss. What many fail to know is that Bitcoin — not like cryptocurrencies — is a long-term funding. Therefore, Bitcoin veterans advocate holding the asset throughout bull markets and shopping for the dips throughout bear markets.

Setting apart a number of off years, Bitcoin holders witnessed a imply annual return of 93.8%, which at its best-performing yr, spiked to 302.8%, reveals data from UpMyInterest.

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Historic abstract of Bitcoin annual returns. Supply: UpMyInterest

So simple as it sounds, hodling (a crypto lingo for holding belongings) has proved to be a troublesome feat for buyers. A number of the components that set off abrupt Bitcoin promoting embrace an ongoing FUD (worry, uncertainty and doubt) and value actions.

Whereas it is smart within the short-term to earn earnings off Bitcoin’s volatility, zooming out the worth chart reveals there’s a long-term higher incentive in holding. Furthermore, buyers proudly owning Bitcoin will at all times have the choice to make the most of this spending throughout geographical boundaries with out dropping worth.

Greenback-Price Averaging (DCA)

Contemplating Bitcoin as a viable long-term funding choice, many buyers are inclined to implement the dollar-cost averaging (DCA) technique. This includes setting apart a predetermined greenback quantity from a daily earnings to be reinvested in Bitcoin each month.

Whereas El Salvador was initially criticized for adopting Bitcoin as a authorized tender amid crippling inflation, the nation may repurpose the resultant unrealized features to fund social initiatives comparable to building hospitals and schools, amongst others.

With the Bitcoin bull run working out by 2022, El Salvador President Nayib Bukele adopted a technique much like DCA, whereby the nation would buy 1 BTC daily.

Again when Bukele announced his plan for a Bitcoin prescription, Bitcoin was priced roughly at $16,600, exhibits knowledge from Cointelegraph Markets Professional and TradingView.

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Bitcoin value motion ever since Nayib Bukele introduced plans to buy 1 BTC daily. Supply: TradingView

Since then, the Bitcoin value has surged 40.46%, offering much-needed reduction to Salvadoreans. Traders on the lookout for monetary freedom should delve into an analogous technique whereas being reactive to market modifications and general public sentiment.


In relation to the long-term holding of Bitcoin, the secret is to not belief another third-party entity with the personal keys of the belongings. Traders who retailer Bitcoin on crypto exchanges unknowingly give away complete control of their assets.

Ever because the FTX fraud got here to mild, the case of self-custody grew stronger. Traders that suffered losses owing to the alleged misappropriation of funds realized the significance of self-custody. Sustaining possession of the personal key — by way of wallets ({hardware}/software program/bodily) — turns into paramount for those who search monetary freedom in its truest sense.

The FTX fallout additionally compelled crypto exchanges to show the existence and security of customers’ funds as a way to keep away from a low liquidity scenario.

Though {hardware} alternate options for crypto self-custody require an upfront funding, it’s as much as the customers to decide on a super methodology of storing the personal keys — even when it means writing down the private keys on a piece of paper.

The three practices talked about above — hodl, DCA and self-custody — type the principle pillars of economic freedom. Nevertheless, customers usually are not restricted from attempting out another methods that may go well with their distinctive wants.

Lastly, to reply the query — sure, reaching monetary freedom with Bitcoin is feasible. Given the nascency of the crypto ecosystem, buyers are suggested to give attention to the long-term advantages of Bitcoin whereas reaping short-term features within the course of.