How to make millions through crypto investment? Everyone wants to be a millionaire and that too overnight!
If that is to happen, then there will be no need to do those regular jobs any more since there will be ‘never ending’ cash with you.
It sounds too good to be true and can only happen in Utopia but few people have found it to be true by trying their luck in the crypto world, though not overnight literally.
You can become a millionaire overnight in crypto if, and only if, there is a technical glitch and not due to your fortune.
However, with some strategic approaches, achieving this feat is not entirely impossible, and of course via legal means.
And, there are lots of people who really have made millions through crypto.
If you only follow their footsteps and strategies, things will start falling into the right places.
If you are clueless about how to go ahead with it, this, fortunately, is the right place for you to be.
This article will cover everything that you need to know and follow in order to make millions from crypto investments.
In this article, you will find the right approach to take to make it big in crypto along with some expert opinions that will help you to move ahead.
In addition to that, you will also come to know about the amount you need to invest and the importance of being abreast with the latest developments in the crypto circuit.
And, with additional knowledge such as the common type of coins to invest in as well as the tax consequences of making money from crypto, you will surely find this article to be absolutely helpful to you.
How to Make Millions Through the Crypto Investment?
There are lots of things to do and to consider if you want to make millions from crypto but, first and foremost, you should understand and be ready to take some calculated risks.
Without this it is not possible to make millions through crypto even in a year, unless you inherit it from your family member.
There is another practical thing to consider for that matter which is the availability of adequate amounts of capital.
Remember, crypto coins can be expensive with the price of some major coins being tens of thousands of dollars.
Therefore, make sure that you do not miss out on any investment opportunity simply due to lack of funds.
And, most importantly, make sure that you get into the act as early as possible because there are millions of aspiring crypto investors out there looking to make millions from crypto just like you.
You must also choose the right option to make more money from crypto, and Altcoins and ICO are not the only options.
In fact, these options are long gone and there is little chance that these will ever return.
Swing trading, as of now, seems to be a good option which will allow you to make the best out of the extremely volatile nature of crypto coins.
If you can do it correctly and follow the right approach, you can make lots of profit and gain wealth in a short period of time that may change your life and savings significantly.
There are lots of exchanges out there that can provide leverage anywhere from 20x and up to 50x.
However, be cautious with your trade because there is a high risk of losing it all as well.
Choosing the right type of coin to invest in is also a very important factor to consider.
Though Bitcoin happens to be the choice for many by default, investing in other coins such as Ethereum and Cardano are also quite productive, especially if this is your first time.
Irrespective of the type of coin you invest in, the key to success is being faithful to your coins and not selling them off quickly.
In fact, holding onto your coins for a long time will give them a chance to grow in their value quite notably in the near future to provide you with more profits and returns on your investment.
You must be able to judge the economic dips if you really want to cash out your money so that you do not take on more risks than you are currently.
If you fail in that, you will fail to reach even closer to a mil.
Since investing in crypto is more of a speculation game, you will make money only if you speculate rightly, and this may not happen every time you do so.
Therefore, be patient and continue repeating a specific cycle over and over again instead of skipping and hopping from one to the other.
You will not be able to make any sustainable passive income that way from crypto especially.
If you want to do it in that way then crypto is not your cup of tea to invest in.
You can try real estate and stocks instead, both of which do not need a lot of money as in crypto.
You must also do what the experienced crypto traders and investors do which is to ‘buy low and sell high.’
According to the experts, the best time to buy or invest is when you ‘see blood in the streets’ – meaning when people are panic-selling because the price of the coin has fallen down.
And, alternatively, you should sell when the prices are high. Rest assured it will happen because the crypto market and prices are highly volatile.
The crypto market will provide you with lots of opportunities to invest and make it big whether it is a direct investment in crypto coins or Non-Fungible Tokens or any DeFi project, and lose them as well if you are not careful.
However, you can definitely become a crypto millionaire by investing little money at the initial starting stages.
And, most importantly, you must do your research thoroughly before, during, and after you make your investment both about the particular crypto project as well as the people behind it.
There are two particular questions that you should try to find the answer to before you make your investment. These are:
- Does the particular project really need a blockchain and a crypto token for it or can it do without them?
- Will the particular project continue to grow and exist 10 or 20 years down the lane?
Remember, opportunities offered by the crypto space are enormous but it all depends on whether or not you are willing to hold onto your coins for a long time and how great a risk appetite you have.
There are many who do not have these attributes in them and do not do proper research before investing.
They think it is very easy and need very little involvement which ideally is far, far away from the truth.
It is for this reason you will not find everybody getting rich by investing in crypto even though it is so exciting and great.
They simply do not research well and put in their hard work and time, a lot of them.
Here are a few essential opinions of the experts for those who want to invest in crypto and make millions from it.
First, they suggest that you should invest in Bitcoin or any other crypto coin for that matter with a firm belief that even if it is an exciting venture and has huge potential for growth, it is almost a certainty that it will have a bad ending.
This is what Warren Buffet, the billionaire investor, had to say to CNBC.
Like Warren Buffet, there are several other Bitcoin millionaires who also warn people, especially the young generation, to sink their money into Bitcoin. Arguably, crypto is not secure and does not have any real value, they opine.
However, several other Bitcoin millionaires refute this claim and are kind enough to share their experiences and tips to invest and manage this ‘unreal’ money that are actually just numbers that you can see on your computer screen!
But then, these millionaires say that the dollars in the bank accounts are also merely numbers shown on the computer screen.
Therefore, they believe that Bitcoin or any other crypto coin is just as real as traditional paper money with the only difference that these coins typically cannot be printed endlessly.
Therefore, these millionaires are not against the people, even the teenagers, taking part in the crypto craze.
They say that this craze allows crypto to extend its reach over and beyond a few of the old folks on Wall Street to the young and poor people thereby offering them an opportunity to become rich as well.
The young crypto or Bitcoin millionaires also believe that investing in crypto and following a proper and diligent strategy is one of the fastest ways that people can have today to attain wealth and make millions.
It proves to be a useful launch pad for the aspiring crypto users to transfer wealth and transform their economic classes very quickly. And, they give their own examples as proof of it.
However, with things changing fast, these millionaires think that this is just the beginning of crypto.
There will be a lot more good news to come down the way.
This is because they believe that deep down inside everybody today knows that crypto is the future and it includes even Wall Street and the bankers.
It is just a matter of time that it will take over and until then the young investors should ‘make hay while the sun shines,’ they opine.
However, at this point they also mention that investors should not focus only on Bitcoin but also make smaller investments in other promising crypto coins such as Ethereum and Litecoin.
A few of these self-made millionaires along with some billionaires believe that people typically create the hindrances to their success on their own.
One of the biggest behavioral aspects that hinder their success is their tendency to throw the towel a bit too quickly.
Typically, if you are impatient or too slow, it will kill your dream to make millions from crypto. Endurance is the key to success in crypto, says a lot of crypto millionaires and experts.
Ideally, making and following a 5 year plan and changing it after that period of time is a good way to go ahead with your crypto investment to ensure success in the long term, experts suggest.
Also, you should focus on those crypto coins to invest in those features among the top 20 of an authentic list.
This is because these coins will have a proven track record to analyze and follow and will also be comparatively safer to put your money on.
However, if you want to invest in lesser known coins then make sure that you invest only a small percentage of your money on them.
You will also need to do some technical analysis continually to find the better coins, to know the market trends, and identify the best times to buy or sell your crypto coins.
And, sell coins or take out your money only when you are certain that your financial objectives are met well and truly.
If you fail to do these, you will end up losing a huge amount of money.
Remember, this is not an easy way to make money but the rewards offered in lieu of your efforts are much, much higher.
If you put in 5 to 6 hours every day on research and to read about the market, have more than the basic understanding and follow the right approach you can really expect to make more than 1000% gains.
And, if the market is good, the return on your investment in just one year could be anywhere between 2000 to 3000%, making you a crypto millionaire in a relatively quick time.
As it is noticed in the crypto surrounding of late, it is becoming more and more popular and a commonplace.
Not many years ago, trading with and investing in cryptocurrencies were done by only a few people. It was more like a hobby or a fringe thing.
This was the playing field for those people who have a high risk tolerance and are aware of the cutting edge technology used in this form of investments.
Today, with the development in technology and increased knowledge about crypto, along with several other external factors as well, a wide range and a large number of people are stepping into the exciting crypto space.
Now you will not only find large organizations and manufacturing plants but also average individuals showing their interest in crypto.
At this point, it is important to know what particular type of holdings you should focus on to make money quickly for crypto.
Typically, it should be mostly Bitcoin. This is not because this is the first crypto but due to the fact that it, as of now, has a reasonably high market cap.
Other crypto coins and projects may be interesting but typically these avenues should not be ventured if a person is not extremely tech-savvy and not very young.
Therefore, Bitcoin is great to invest in if you really want to make big money from crypto.
Period! Of course, as said earlier, the current prices of Bitcoin may be quite high which is why you should have an adequate amount of capital to invest in.
Now, how much you should invest in crypto coins is another significant aspect to consider.
According to the basic rule of crypto investment, you should never invest more than you can afford to lose.
However, according to this canon, it means you should afford to lose millions if you want to make millions from crypto, but then you are not a millionaire right now and want to be one.
Then what is the point?
Ideally, the norm signifies that you should invest only that much money at a time that will not weaken your financial health.
It is better to invest small at the initial stages and gradually increase it as you move ahead and start making profits.
However, according to some professional crypto investors and those who have already made millions from crypto, you should follow the 5% Rule while investing in crypto.
This means that your investment amount should never increase more than 5% of your net liquid asset: in fact, the less of your play money invested the better.
Remember, crypto investments with its current scenario are still not considered to be as good as traditional savings and wealth building tactics.
This will save you from the adverse effects and losses you may incur due to sharp drop in the prices of the crypto coins, which, by nature, are extremely volatile and prone to wild price swings.
Now, you may think that this way it will take years to become a millionaire, but then, as said earlier, nothing can happen overnight unless there are any technical glitches.
Finally now, assuming that you are following the right path and are seeing a considerable amount of wealth rolling into your crypto account, it is time to consider the tax consequences.
This point may not seem to be relevant to the topic but then what is the use of making millions from crypto if you have to pay large amounts in penalties due to tax violation charges.
Therefore, you should know what you should report to the IRS or the Internal Revenue Service when you make capital gains or losses from crypto.
Remember, you may receive a Form 1099 for traditional investments but the crypto exchanges are not legally bound to send any such forms because these exchanges are typically unregulated.
To make sure you do not violate the tax laws, you should keep a proper track of your money as well as ensure that you do not miss anything that you should certainly mention in your form.
You may take help from an expert tax consultant to stay out of trouble and avoid headaches when the year draws to a close.
Therefore, you should know what is taxable and not taxable in crypto and their difference when you buy, hold, or sell your crypto irrespective of making a gain or a loss. And, always pay your taxes on time.
It may not be easy to make millions from crypto but it is not entirely impossible. Going through this article now you know why it is so and what you should do to make it big through crypto investments but do not expect it to happen overnight.