Can you be a millionaire investing in cryptocurrencies?

Much has been speculated on this issue. Some believe that cryptocurrencies have only been a spiral of speculation in recent years that has allowed those who already have it to concentrate wealth. In Crypto slang, they are known as ‘Whales’.

 

Although the chances of making a fortune overnight – as if it were to win the jackpot of a lottery – are very remote, it is no less true that throughout history many business opportunities They have been presented to ordinary people to make their fortune with a little luck and hard work: the era of motorsport, the Internet revolution and its “dot coms”, and more recently, the case of cryptocurrencies.

And we comment on cryptocurrencies, because as we have mentioned in other articles by this means, the possibilities with respect to the traditional stock market for the common user to make ‘good money’ not to mention fortunes, is higher and not to say feasible.

If you think that the ‘wave’ has passed and that you have already lost your chance, you are wrong. Let’s review the reason for this statement, but first let’s take a look at what happened with projects like Ethereum, NEM, Binance Coin, not to mention Bitcoin.

If we study the cases of Ethereum and NEM, the behavior is similar. In the first case, Ethereum achieved x10 capitalization and NEM x1000 in its short years of existence. Not even Amazon achieved similar returns.

As we can see, cryptocurrencies in the past have created opportunities to become millionaires, if we follow the example of celebrities like Warren Buffett, for example; Starting from the principle of multiplying your investment by x1000 and never sell an investment until you achieve the final objective.

There are several recommendations to make the right investment decision how to get rich investing in cryptocurrency South Africa?, and more so when it comes to cryptocurrencies, due to their high market volatility and documented cases of scams. Based on this, it is important to recognize and differentiate undervalued but solid projects that are long-term promises and not synonymous with wasted time and capital invested.

In past opportunities we have warned about how to avoid projects of this fraudulent type, but it would be interesting if you are looking for a new opportunity in this incipient changing market for digital assets, about which profitable project to invest to achieve the goal in the best Warren Buffett style: become a millionaire.

For this, there are three fundamental recommendations, which every experienced investor or not, must take into account when betting any type of capital in cryptocurrency projects in general.

1- Find a good project

Perhaps it is the tip of the spear and the most difficult thing for every investor. Not all of us are born with the ability to differentiate a good project from a scam, otherwise there would be no multiple cases of scams throughout the history of investments.

The key here is to educate yourself: to be well documented and informed about the project to invest. According to investcryptocurrency there are currently more than 2000 projects currently listed, many of which hardly move a significant volume of capital, not counting their little or no activity.

For this reason, it is important that when selecting a crypto project about which we have learned <generally through advertising> we must look at certain fundamental parameters in order to know that our capital will be at least recovered: relatively tight capitalization of half a million onwards and up to $ 4 millions, experts recommend.

Additionally, we must follow your roadmap very closely, make sure that your whitepaper is original and attractive, its evolution in the market, its development team and its activity must be very high, since only in this way will it ensure that it will not die in the attempt once they achieve their original investment.

2- long-term HODL

It is common for many investors to take early withdrawals from projects to guarantee relatively low returns due to fears of market instability given its high volatility.

The key for every investor who wants to be a millionaire is to be patient and if the documentation and activity of the project is good and solid enough, then to maintain your investment in the long term to ensure profits of x1000 onwards, since lower margins are only used to speculate short term.

As an example we can see the token of the Binance platform , BNB; which has been developing in its price and use, which gives an even greater potential for the long term to the investors of this project who acquired their token at an early age, to be able to make some fortune in a period of 5-10 years plus; given what the roadmap of this asset promises.

Similarly, it is important in any cryptocurrency investment, to maintain a stop loss in case the trend and projections are not met, in order to ensure return on capital, especially in those projects with little financial support.

3- Diversify

This is the key of every investor. You should never invest all your capital in a single asset and in a single branch. As an example, let’s look at the case of the “dot com” bubbles, those shares in the industry that cost pennies, inflated and then many of which disappeared, generating millionaire losses for many investors, who bet on their success but whose portfolio did not. it was diversified.

You should always try to generate liquidity, in case you need it at any time, to invest in long-term and short-term projects. In this way, if one of the two scenarios is disadvantaged, you can compensate for losses between both.

In addition, the option of having large shares of various projects in different sectors is a guarantee of being able to recover the invested capital in the worst case. That is why you should not bet everything on a single item or less on a single project in particular. The cryptocurrency business is highly volatile, but also very broad given the number of use cases that are being generated.

Finally, it is worth mentioning that this 2021 is expected to be the year of the consolidation of the technology imposed by cryptocurrencies, and therefore the large number of regulated and new projects to come out; as well as the improvement of many existing ones, they promise a good opportunity to invest thinking in the long term to be able to achieve the desired objective for many. It all comes down to studying, patience and diversification of a good portfolio.


Source link