Would you like to be a millionaire? Dumb question. Of course, you would. Unfortunately, not everyone can be a genius like Elon Musk, Jeff Bezos, or Bill Gates. Don’t worry, though. There are many different ways of making a fortune.
One of them is trading on the emerging cryptocurrency market. Many people have significantly raised their wealth and became crypto-millionaires since Bitcoin’s 2009 breakthrough. That probably raises the question in your head. Can you do the same?
Well, it won’t be easy, but it doesn’t mean it’s impossible. There are a few rules you need to follow if you want to become a millionaire with cryptocurrency. What are they? Let’s dig in.
To Mine or Not to Mine
When it comes to the most popular cryptocurrency, Bitcoin, you have two primary ways of getting your hands on it. Mine and trade. Let’s take a look at both of them.
When it comes to mining Bitcoin, you should know one thing – it’s tough. All thanks to its pioneers who engineered it to make mining more difficult as time goes by. And unless you are an IT genius with professional equipment, you have no chance of finding even a single Bitcoin.
That’s why the only option you’re left with is trading. To learn more about the cryptocurrency market, you can click here, but the first thing you should know is that it’s a risky business. Still, it’s your best chance of making some real money.
Also, when it comes to investing in cryptocurrencies, you have nearly 1600 options ahead of you. The best one, though, is Bitcoin. It’s not only the most famous one, but it’s also the most stable.
The vast majority of other cryptocurrencies have a short life span, whereas Bitcoin has been around since 2009. Moreover, it’s still going strong. In 2011, 1 token was worth $10. Now? $10,299.
Picking the Right Strategy
When it comes to trading on the cryptocurrencies market, the rules are similar to the traditional bonds and stocks. That means you can apply the same investing strategies. If you’re new to the trading world, you should know there are four main types. More on them below.
Dollar-Cost Averaging (DCA)
Known as the “safe haven” for traders, dollar-cost averaging strategy means regular buying of a particular cryptocurrency. You can do it every other day, every week, or month. DCA is regarded as the safest because it doesn’t require too much emotional connection from investors.
This particular strategy allows you to use leverage or margin your trading. You can achieve that by borrowing funds to increase your position. Each percentage point you earn is multiplied by the number of times you leverage your holdings. For example, your 10X leverage will equal 10% of every 1% change.
Buying the Dip
When you’re buying the dip, it means you purchase the asset after its price has declined. In essence, you buy a certain cryptocurrency that you believe will increase in worth shortly.
You have to be extremely careful when it comes to that method, and keep monitoring the market situation to buy and sell at the right time.
Short trading means betting against the asset. Traders apply this strategy when they believe the prices are about to go down. When it comes to the world of cryptocurrencies, this particular method can be tricky since they’re very volatile.
But mining and trading are not the only options for you to make money on cryptocurrencies. If you like gambling, you can try your luck in crypto casinos. In the past few years, the number of online bitcoin casinos has increased significantly and has become extremely popular among gamblers.
Why? Because cryptocurrencies are tax-free and completely anonymous. What’s more, such casinos are user-friendly and are continuously adding something new, making the gambling experience much more exciting.
Bitcoin gambling can allow you to make a lot of money in a short time. Well, only if you play your cards right, of course.
The Bottom Line
And here it is, the main three ways you can implement to become a millionaire with cryptocurrencies. Each one has its pros and cons, so it’s entirely up to you to choose what suits you best. Nevertheless, trading is probably your best option.
But before you invest in Bitcoin or any other cryptocurrency, you need to know how to do it properly. The best way to do it is to pick your exit strategy and focus on the long term. With a bit of luck and skill, you’ll get your first million in no time.