Can you create and preserve wealth with cryptocurrencies?

Cryptocurrencies are a relatively new addition to the financial world, at least when compared with traditional assets and forms of investment.

An ever-growing number of people have begun looking into how to buy crypto, when are the best times to sell, purchase, or trade, and which retailers and companies allow paying with crypto coins. After all, the original purpose of digital money was for it to act the exact same way as fiat currencies, but that ultimately never became a reality. Instead, crypto is widely used and regarded as a store of value. Most investors are focused on the long-term when it comes to crypto, holding on to their assets for years and letting them accumulate value.

This increasingly common strategy has led many to wonder if cryptocurrencies can be considered a valid and reliable method of acquiring and maintaining wealth. While they haven’t been around for long, it only makes sense that investors would become more interested in them if there is a possibility that they could bring significant gains.

The overview

When it comes to crypto and wealth, the opinions you will see can almost be polar opposites. While some are convinced that crypto coins can make traders rich if they are dealt with correctly and responsibly, others believe that they are one step away from being scams. But while there are many holding negative views about cyber assets, the truth is that many investors have shown that amassing wealth through cryptocurrencies is possible. It just requires patience, discipline, and a good strategy. In this sense, this makes cryptocurrencies not at all different from their more traditional counterparts, as all investments require caution and comprehensive knowledge in order to be successful.

Cryptocurrencies first entered the market when Bitcoin was officially launched in 2009 by its still-anonymous creator, who is known to the general public as Satoshi Nakamoto. While in the very beginning, BTC was a meager $0.08, it skyrocketed to $69,000 in 2021, then achieved a new, short-lived all-time high in 2024 when it broke its own records and surpassed the $70,000 level. In this sense, it has shown more robust performance overall during this time period, but that doesn’t mean that the majority of investors will trust it just as much. Bitcoin’s journey wasn’t a straight line, though; in fact, the coin has become popular for its numerous ups and downs.

Several more developers followed in its footsteps, resulting in the development of a huge number of altcoins, as well as other tokens and assets associated with the crypto world. These are typically considered to be even more volatile than Bitcoin, on top of being less valuable due to their lack of scarcity. Nonetheless, some altcoins have achieved tremendous popularity and sizable market capitalization levels as a result of the novelty they brought to the marketplace. Ethereum is the leading example in this regard, as a platform that ushered in the concepts of decentralized finance and applications, concepts that are expected to enter the mainstream at some point in the future.

Crypto and wealth

Crypto can seem like a very attractive and accessible way of acquiring wealth for regular people who don’t have a large amount of funds at their disposal. But how exactly does that work? On the one hand, crypto can be used as a money reserve, while on the other, it is also useful as a way of preventing inflation and its negative outcomes. Decentralisation is another characteristic of the crypto space that allows users to preserve their funds and maintain their capital steady. Cyber coins are also not limited by considerations of geographical boundaries, meaning that you can send or receive crypto from any part of the globe, regardless of the day or time, and without additional costs as well.

And while some are reluctant, if not downright opposed, to considering it their main investment, they are still willing to see BTC as a reliable backup plan. In the event of a financial disaster, such as a very strong recession, cryptocurrencies would be safe as they aren’t dependent on standard systems. In fact, it is quite likely that the value of cryptocurrencies would increase significantly during such an event. In countries badly impacted by sky-high inflation rates, many have started using cryptocurrencies, even going as far as to convert all the assets they had purchased in the past to crypto.

Enhancing wealth

Typically, the formula to build wealth in the crypto space is quite simple. All you need to do is wait for the prices to dip and use that opportunity to buy. The general consensus in the community is that you need to buy low and sell high in order to increase your likelihood of success. All cryptocurrencies operate based on this simple idea, but you must keep in mind that you won’t achieve immense wealth overnight. The get-rich-quick schemes that are often associated with cryptocurrencies are more likely than not to be scams whose purpose is to drain your digital wallet completely.

All things that promise you considerable gains with minimal effort and in virtually no time should rightfully be regarded with suspicion. The slow and steady approach is definitely much less glamorous, but it is the best way to go if you’re looking to actually build wealth and truly change your financial outlook. Stablecoins can also be used to improve wealth, with lending being one of the most common processes. In a sense, it resembles conventional banking, allowing investors to earn passive interest.

Staking has become increasingly popular in recent years and is used by those who want to earn money steadily and grow their wealth step by step. Yield farming is a technique centered on locking assets into liquidity pools and which has the potential to generate very high returns. Liquidity mining adds liquidity to protocols, and as long as the users maintain tokens within the pool, native ones are minted at each block.

Building wealth with cryptocurrencies is possible, but it is not a venture that should be treated lightly. You must remember that assets tend to be quite volatile, and you shouldn’t be erratic and impulsive when investing. The slow and cautious approach is the only way to go if you’re looking to gain capital.

Author Profile

Adam Regan

Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com