Thread by @TheCryptoLark

How to retire with #crypto, a thread for those wanting to escape the rat race!

1 First you need to determine how much you need to retire. Classic calculation is 25 X your annual expenses based on withdrawing 4% annually. IE your expenses are $50,000 a year then you'll need 1.25 million. Just 1.25 million, I'm sure you all have that laying around right?

I do want to point out though that this total amount saved could be a lot less since rates of return are so high in crypto. IE 250k in Anchor would give your 50k a year passive. Still though the more the better.

2 Here's the thing though. Getting enough for retirement whether early or later is not an overnight endeavour. It requires time and patience.

2.1 The most common way to save enough is by cutting the fat.

example:
Buying takeaway coffee every day for $5? Stop, you will save $4.80 a day making your own at home. Take that savings and invest it! 4.80 may not sound like a lot, but that is $1,200 a year!

2.2 Take spending optimization seriously. Review your budget and ask yourself the hard questions. The more you can invest sooner the more likely it will be that you can "retire early".

3 Now that you have saved more money you need to invest more money!

The simples way to do this is to dollar cost average into safer cryptocurrencies like Bitcoin, Ethereum, Chainlink, Aave, ETC. This is the time in the market versus timing the market approach.

3.1 The younger you are the more risk you can take. But don't take on too much risk no matter your age, you can flush a year of home brewed coffee savings down the drain in minutes on leverage trading, meme coins, and degen defi.

3.2 That being said altcoins represent the best chance to see massive returns on your investment. I'm talking 100X gains here.

BUT, you must remember that many altcoins will not make it long term.

3.3 Quick tips.
1 - Keep position sizing low on high risk plays. 1 to 5% of your crypto portfolio is enough.
2 - Take profits when high risk plays pump. Get your capital out. Move high risk money into low risk plays like BTC.
3 - Keep a moon bag, just in case ;)

4 Create passive income! We are spoiled with choice in crypto, there are so many good ways to earn a passive income it is crazy.

4.1 Lending via centralized services is one of the easiest ways to build passive income with your crypto. Basically just set it and forget it. Blockfi and Celsius are the most popular providers.

4.2 Yield farming is "passive" income. The rates can be really really good. But often you need to move from farm to farm as rates constantly change. Some more solid defi plays are Bancor, Yearn, and Thorchain.

4.3 Staking can generate some good annual returns as well. BUT in order to make this really work for you remember the following.
1 - Get in early
2 - Always be staking
3 - Only stake quality coins
4 - Compound as long as you can
5 - Understand the long tail rewards curve

4.4 Stablecoins are your friend. APY on stablecoins can range from 7% to 30 or 40% depending on the platform. At 7% it takes 10 years to double your money. Anchor is currently offering 19.5%. This doubles your money every 4 years!

5 Realistically you probably don't want to depend 100% on crypto. Blasphemy for some I know. But I am building a big and diverse stock portfolio. Any sane investor will also consider stocks and real estate for a retirement fund.

6 You may not know this, but if you're rich you can go and live anywhere. Thus, you may want to explore if your retirement whether early or late is best done in your home country. You may get a better quality of life, for much cheaper, and incur a much lower tax burden elsewhere.

6.1 This goes back to our first point. Because while you may have $50,000 in expenses now, you could have half that in another country. Here is an interesting article about tax free or low zones where you can potentially buy a passport. cointelegraph.com/news/former-pr…

7 Final thoughts. "retiring" on crypto in your 20's or 30's or 40's or whenever is indeed possible. And you can do it, just be aware that risks remain and you need to keep a calm rational investor focused mind set to make it happen.