So you are interested in becoming a millionaire with crypto? It’s a good thing and it is very possible. The information here can make you a millionaire in a few years. But first, you need to learn how to keep your emotions in check. There are two major emotions that drowns success. The first is fear, the second is greed. Any of them can ruin you. You must set your eyes firm always. This is important if you’re going to make millions in crypto.
I do not consider myself a crypto expert. Have I made a lot of money like that in crypto? No (I was late to the buy-and-hold party), but I’m certain I will. I can’t advise others and not put to work what I know. I have not come to load you with insider tips or smart predictions. All I have are fundamentals to build upon. The principles here are instruments that can make you rich and stay rich. It’s about building a sustainable portfolio in the crypto ecosystem. This is about building wealth.
In 2011, to become wealthy would be to buy bitcoin and hold it up till now (or 2017 at least). Now, it’s a little too late for that narrative. Not that bitcoin cannot climb to $50k like the predictions say, but what if it doesn’t. $10k is already a milestone, and I expect it to go further but I don’t depend on it going further. That is because investing prices risk. Gambling hopes.
Today, the crypto world is creating it’s own financial ecosystem and it’s still in its infancy. The key to become wealthy in crypto now is not to buy and hold, rather it is to diversify and thrive. What does that mean? It means to create a sound investment portfolio in the crypto world that produces for you and keeps on driving itself with the progress of the ecosystem. The answer here is a healthy and balanced investment portfolio within the crypto ecosystem. Is that possible as of now? Yes!
Before we go on, there is a critical instruction you must adhere to. Have wallets in (at least) 4 different places. You can start with 2 and as you deal with more money, open more wallets in other platforms and spread your holdings properly. This is very important
The following are the categories where you should spread your investments. The real deal here is the percentage you allocate each category. I will not be giving a percentage, you should work that out yourself. But I strongly advise that the low risk areas should outweigh the high risk and also there should be a bull/bear balance within the portfolio. You can be optimistic but don’t be naive. Remember, time is the real money. Here are the categories:
Mining (low risk, long term, passive income, thrives in a bull market)
The profitability of mining gets more difficult by the day but it’s never too late to get in. There are quite a number of cloud mining companies that are selling hash rates. Some are even having their ICO currently. You want to have something in your portfolio that gives you passive income. Some of the investing opportunities pay dividends, so they would pass as security tokens.
Trading (medium risk, short term, capital gains, thrives in bull market)
This is what many do and claim they are into crypto. While the profit can be substantial in a short while, the losses (when compounded) can be very critical. There are algorithms that some smart people have designed to trade crypto to minimize losses and maximize gains. Instead of competing with the machines, why not join them? Have some tokens (or a contract) with an algorithm trading platform. And if you want to do it yourself, you can but I’d rather spare myself the headache.
Highly Speculative Tokens (high risk, medium term, capital gains, thrives in a bull market)
There are tokens that climb 1000% or even more over night. You would want to put yourself in line for such a gain. This is the reason to own and hold HST. How do you know them? It’s very simple. They are tokens that are connected to companies that aims to disrupt a major industry in the world. If the team is good and well connected, at some point there will be (at least) rumours that a traditional big player is bringing them on board. Their values will spike, then you can rearrange your portfolio.
Platform Coins (Low risk, long term, capital gains, thrives in a bull market)
A lot has been said about platform coins by a number of tech savys. These are coins that enables applications to be built on its framework. Examples are ethereum, neo, stellar. They are said to be the next set of coins to shoot up to the moon. The argument is that their value will rise based on so many applications being developed on them. So, it’s good to own some of them for hodling. It is advisable to save in these coins.
Fixed Value Tokens (low risk, long term, no gains, useful in a bear market)
These are tokens whose value are attached to a certain real entity and doesn’t really jitter with the jitters in the crypto markets. Tokens whose values are based on gold prices are a good example of this. There are a number of tokens like this. It’s important to do your own research and understand how fixed the token value is before you buy into it. So that you won’t be buying HST and be thinking you have FVT. This is what you liquidate in a bear market to help with timely needs and to prepare for the next bull market.
From ICO to exchange (low risk, short term, capital gains, thrives in a flat market)
A lot of people do this already. It is the fast way for fast money. Buy into a token at the ICO stage when very early, so you get good discount. And then wait till ICO is over and when the token is listed on exchanges to sell at the last ICO price. The bonus tokens you got at the discount stage will make your profit at the sell stage. This is not advised, but it is an option and many do it. There will always be someone who wants in on the project who missed the ICO. However, the volume of this should be very reasonable.
Shorting Crypto (high risk, short term, capital gains, thrives in a bear market)
I didn’t know this was possible until recently. There are companies that will pay you if you correctly predict the price of (say) bitcoin (for example). And with such a platform you can short bitcoin or any coin. This is the friend that puts your investments under check. If the market is about to go down significantly, you can make a bet to protect the downside. Examples are www.augur.net, www.stox.com, www.gnosis.pm
- Do your own research
- Diversify your investment and thrive
- You have not made profits or losses until you sell
- Your low risk holdings must outweigh your high risk holdings
- All 3 financial market scenarios must be accounted for: bull, bear and flat
The bottom line here is that you can walk your way to wealth in the crypto world while you sleep well at night. Gambling may make you money but investing will make you wealthy.