So You Want to be a Bitcoin Millionaire?

So you want to be a Bitcoin or crypto millionaire?  For many of us, that is our ultimate dream.  The ability to finally get ahead in life.  No longer getting caught up in the rat race of going to your 9 to 5 job that you hate. Finally paying off that debt that had been a huge weight on your shoulders. No longer living paycheck to paycheck and having constant stress about money.  Checking prices before making purchases is something that you don't need to do anymore. Money is something that we don't need to worry about anymore.  We now have the option to retire if we wish, but most importantly, we now have the freedom to live the life that we want.

For many of us, that is what we are striving for each and every day.  To finally achieve financial freedom and take back control of our lives.  It's this motivation that keeps us going to work and trying to improve our lives.  Unfortunately for most of us, many of us are realizing that it is becoming nearly impossible to make that dream a reality while working our current jobs.  Always remember the fact that when you're working for someone else, you are making other people rich.  Only when you begin working for yourself, can you begin your journey toward growing wealth.  But for many of us, that isn't an option.

And so we turn towards investing.  If you're reading this article, it is likely that when you found cryptocurrency.  At least in my own situation, the moment I found cryptocurrency, it felt almost like an epiphany. That I had found my greatest chance for escaping financial hardships and completely change my life financially.  It felt like I was being included in on an incredible secret, that most people have been able to hear or see yet.  It was our chance to be early on one of the best investing opportunities of our lifetimes.  It was also an opportunity to be so early that the typical big players in the financial world hadn't even discovered this market yet either.  After falling completely down the rabbit hole of Bitcoin, Ethereum and crypto, I had come to one conclusion.  There were only two possible outcomes from investing in this market. Once the market had decided if crypto would be a viable market for the future, I was either going to become incredibly rich, or I would lose all the money that I had invested into this market.  There would be nothing in-between.  It was an incredibly high-risk, high-reward investment that I was entering.

This scenario might sound very similar to many of yours as well.  Once you really begin investing in crypto, it becomes increasingly hard to go back to other investing markets. 

The Volatility

While many of us looked at Bitcoin and crypto as our big opportunity to finally change our lives, a high percentage of us thought it would be incredibly easy.  Perhaps the reason for this is that a large percentage of us joined the market during bull cycles.  During those periods, it seems like there were green price candles day after day.  You could pick nearly any coin and it would go up.  If you had a decent amount invested in the market, it was possible to make a fortune.

That was a good strategy until it wasn't.  Crypto is known for its extreme volatility.  We love that volatility when it works in our favor making us a lot of money.  We also cheer on that volatility as we want to see crypto reach those incredible price predictions that we have all been dreaming about.  But, there are two sides to every coin.  In order to have volatility to the upside, we must also have volatility to the downside.  Prices do not go up forever, and it is healthy to see prices go both up and down.

In the past, we have seen this downward volatility flush the market clean of people who don't really believe in crypto. This is what causes bear markets to begin.  However, it is arguable that this cycle could be much worse.  The world is going through intense macro factors that have caused even those with the most conviction to capitulate and go into survival mode.  It is hard to blame them, as it appears that the world is collapsing around them.  In the span of fewer than two years, we saw the price of Bitcoin go from $7k to $3.5k, then up to $64k, and back to $28k.  We then saw BTC rise back up to $69k, and eventually drop down to $18k.  These are incredibly volatile price movements that we have been seeing.  For anyone that has a significant amount of money invested into crypto, it can be far too much to handle.  If you have invested too much of your wealth into crypto, it would make these price movements almost too stressful to handle.  

While many of us want to put as much money as we possibly can into this market to hopefully become wealthy.  The truth of the matter is that many of the people who do this won't survive through several market cycles.  The stress of the market alone might cause them to capitulate and sell.  If the stress doesn't get to them, it could be that they chose coins that just didn't end up being successful.  Always remember to protect your sanity in the market and also your assets.

Long-term Time-Frame

For some, getting rich in the crypto market could happen overnight if they choose the correct coin.  The odds of that happening are similar to winning the lottery.  For most of us, the better option is to try to play the safer option. In the crypto market, those safer options are Bitcoin and Ethereum.  It's easy to forget, but in the general investing world, these two assets are still extremely risky.  It would be best for many of us to dollar cost average into Bitcoin and Ethereum over the years and enjoy their continual increase in value. 

With how the market has been acting recently it may be hard to stay positive about the price potential for crypto in the future.  Due to the macro events taking place currently, this is happening to all financial markets.  But when you doubt crypto's price action, "just zoom out."  While the last year has felt like prices have only been moving downward, and that would be enough to make many of us sour on the market.  The truth of the matter is that upon zooming out, prices are still upward and to the right. Once this whole macro situation finally is resolved, prices will likely explode upward again.

What all this means is that when investing in Bitcoin, you need to have a long-term timeline.  We have all heard that we need to have timelines of at least 5-10 years when it comes to Bitcoin. Anyone who holds BTC and continues to hold long-term has typically done very well.  It is only those who had shorter timeframes that bought and sold quickly that lost money.

The Unquestioned Conviction

We have now reached the third thing you need to have to become a crypto millionaire, having unquestioned conviction.  The intense downward volatility can be strong enough to make many people leave the market.  Having short-term timeframes amplifies that stress from price movements even further.  Having unquestioned conviction is the hardest trait to have in this market.  While the news is throwing constant FUD attacks towards crypto, threats of being deemed illegal by governments around the world, hacks, and companies becoming insolvent causing thousands of people to lose their money. The macro world around us continues to collapse and prices are in the red nearly every day.  This is enough to make nearly anyone lose their confidence in the market and decide to sell.  For those of us who have "diamond hands," refusing to sell.  And also in the wake of everyone else losing confidence in the market, continue to buy as much as they possibly can.  Those are the people who will become millionaires in this market once it finally does recover.  We all imagine that we would be able to maintain our conviction and continue to buy while others are selling.  But, as many of us found out recently, it is much easier said than done.

There is a stereotype that getting rich with Bitcoin, Ethereum or crypto is incredibly easy.  For those of us who have been in the market, we disagree with that statement.  While this market may be the best opportunity that many of us have ever had to change our lives financially.  It by no means is easy.  The market will test you mentally as you have never been tested before.  If you can handle the volatility, keep a long-term timeframe, and maintain conviction, then you will have a very good chance to become a crypto millionaire in the future.

How about you? What do you think the most important things are to become a crypto millionaire?

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As always, thank you for reading!