The Best Way To Generate Wealth In Crypto

It Might Be Difficult But It’s The Most Powerful

Most people coming into the Crypto space are here to create life-changing wealth. Whether or not they manage to attain it or not is another story. If you are starting your journey with limited, or even zero funds, it can be quite challenging. I know that there are a lot of success stories out there of many who began very modestly and have gone on to create significant wealth. This is also very impressive when one considers the timeframe, as this type of success often requires a significant capital allocation, accompanied by many years of diligence and patience. At the end of the day, there are only really two ways to generate significant gains in the Crypto space. I will be focusing on what I consider the best but let’s first take a look at the alternative method.

The Audience

You would probably have noticed the “success stories” of many YouTubers who were cashiers and taxi drivers a few years ago and are now multi-millionaires! These guys didn’t start with much at all but what they did do was create a massive following over the years. Most of them provide trading technical analysis and then refer their users to trading platforms through which they have secured special exclusive bonus deals. You do the math, if you have a subscriber count of half a million or more and you are earning trading commissions from a fair amount of them, it can be rather lucrative.

That is some serious income potential by any standards. This is how many try to create and generate wealth in the Crypto space but very few actually reach any meaningful success utilizing this approach.

The Better Way – Future Gems

This might be the better way in my opinion but it is still rather difficult. What makes it superior is that knowledge replaces the massive task of creating a strong following. This approach is not really applicable to noobs, as they don’t really have the grounding that is necessary to spot a gem, which is why many turn to creating an audience. Most of the big names in YouTube only arrived in 2017, they are in essence still noobs themselves.

However, even with experience, it can be very tricky. Experience and time in the market are not necessarily a guarantee that you will make a good call. It does offer a much higher likelihood though, especially as more seasoned investors are for the most part, less prone to FOMO.

Multiple Factors On Your Side

Unlike the massive task of building a large audience, the process of building positions in new and emerging blockchains and blockchain-based projects is a lot easier. You have time on your side in most cases, whereas building an audience is a desperate race against time. Building altcoin positions is something that can be done when there is spare cash or specifically generated cash for altcoin investments available. Creating passive income is like creating your own legal money printer. This is my preferred approach. This way I can continuously build positions without allocating or putting my own funds on the line.

Yes, this is in essence my own money but I have not had to work or exchange my time in order to gain it. This also makes it a lot easier to stomach if a particular pick does not perform as expected.

Great For Dips

An unrecognized altcoin is very likely to dump hard when the market corrects and makes for a great accumulation zone. If you really have conviction in regards to a certain project then you will jump at the opportunity to increase your holding at discounted prices. Something that needs to be remembered in regards to this approach is that it is typically an approach that will require between 2 to 5 years to experience any significant gains. It can sometimes happen a lot faster but investors need to be prepared to endure this time frame.

It is really good to experience a 400% or 500% return but in all honesty, these returns will not generate any meaningful wealth. You have to be committed rather long-term with continuous contributions if you wish to experience significant returns.

An Approach Seen On Hive

This is an approach that seems to be quite prevalent in the Hive community, as well as Leofinance. The community is motivated to continuously increase their accounts and build up their voting weight. There is an expectation, though nobody necessarily knows when that growth will come. There is a strong conviction that at some point, the ecosystem will be recognized and receive value from the market. I firmly believe that there will be a number of community members who will indeed create significant wealth via Hive. Whether this takes three years, or even five, I am not sure.

I do however have quite a strong conviction that there will be significant growth and value being created within the Hive ecosystem over the next decade. Some are deterred by longer timeframes, which is why they often don’t experience significant gains. Even in the Crypto space, time is the ingredient that separates decent gains from amazing gains.

It’s A Numbers Game

Whether you look to grow your own community on YouTube or some other platform, it is still all about the numbers. You will not get very far, even with a few thousand followers. The multiplication factor is too limited. In the same way, accumulating a coin that goes on to perform 500% will also miss the bar. Once again the multiplication factor is too small. However, finding a coin prior to recognition will hold the multiplication factor needed to experience significant returns. A quote by Dale Carnegie comes to mind.

The person who goes farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.

Conclusion

This is very true, especially in the Crypto world. Remaining with the leaders is good for portfolio stability and growth but significant growth will require risk and will only be experienced by those who are prepared to take calculated risks.

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.