The Crypto Recipe For Success
The cryptocurrency market is what I consider to be the most exciting thing happening on the planet right now. Not only does it have the potential to change the world as we know it, but it also has the potential to change your life financially forever. There is a stereotype that it is incredibly easy to get rich by investing in cryptocurrency, and while a portion of that may actually be true. I would argue that in this market is most likely more stressful than other markets, but it is also much easier to lose all of the gains that you have made. Only the strong and knowledgable survive. Far too many people end up buying high during times of peak FOMO, and then up selling at much lower prices during times of peak fear. Only to have huge regrets when prices later rebound.
I am often asked how a person can make it in this industry, and how a person can make life-changing gains financially. While this isn't financial advice, but it is my opinion and the thought-process that leads my crypto investing. The first thing that you need to know how to do, is doing your own research. For a moment, just think about all the time and effort that is required for you to wake up each day and go to work, and then to have even a little extra amount of cash leftover that you can afford to invest. Most of us don't want to go to work, but it is something that is required for us to survive. You worked extremely hard for that extra cash to invest and you should work just as hard, or give just as much care while investing it. So while investing in meme coins of the moment such as Shiba Inu, Floki or Dogecoin could potentially net you very quick profits. It could evaporate just as quickly.
That is why I prefer to build an extreme strong foundation with my crypto investing. The basis of my foundation consists of a huge majority of bitcoin and also ethereum. My thought process is this; the crypto market is already risky enough, and extremely volatile especially when compared to other asset markets, and so betting on the safer crypto plays is completely fine for me.
The main complaint that people will often say when they are recommended to invest heavily into bitcoin or ethereum is that the prices of the coins are already too expensive. That they have missed their chance with these coins, and have much better opportunities to make money with other coins. My response to that is that people are thinking too small in scope. While it may not seem like it, those of you who are reading this article are still very, very early in crypto. Think about all of the people that you know, and now think about how many of them are into crypto. I would wager that for most people, that percentage is shockingly low. That is changing.
I have said it many times during the last year, but Covid changed everything and sped up the adoption and public image of bitcoin and cryptocurrency by at least ten years in my opinion. Likely much more. Let's have a quick recap of just some of the things that have happened for bitcoin during the last 2 years. Several companies including one of the largest in the world, Tesla, put bitcoin on their balance sheet. It become legal tender in El Salvador. Countless ETF's around the world were approved. The China mining FUD has come to an end. Adoption of bitcoin's layer 2, Lightning, has increased much faster than expected which would allow bitcoin to be used easier for payments. Hedge funds, banks and credit card companies have adopted bitcoin. The list goes on and on, but one thing is for certain and that is they will not stop happening.
Looking at the current price of bitcoin ($44k) and ethereum ($3.1k), it would be silly to assume that prices will remain here forever. Especially with the increasing adoption of bitcoin and ethereum. Not even mentioning what could possibly happen after Ethereum 2.0's features are fully rolled out.
So what is the future price potential of bitcoin and ethereum? It all depends on what your time horizon is.
In the short-term of 1-3 years it is entirely possible that bitcoin and ethereum could see at least a 10x in price. This would put bitcoin at nearly $500k, and ethereum at around $30k. But, that is only in the short-term. If those above situations continue to happen and crypto continues to increase its adoption the sky is the limit. As crazy as it may seem to people at the moment, by the end of this decade I would not be surprised to see bitcoin's price surpass $1 million per coin, and ethereum's reach $75k+. Once again, that is only by the end of the decade, and the numbers just become crazier the farther out you go.
I don't think anyone of us would complain about those kinds of profits and it is definitely still possible to make life-changing wealth by investing into bitcoin and ethereum. Then also adding to your ability to accumulate by lending out or staking bitcoin and ethereum, and that will help you progress much faster towards your goals.
So, yes it is true that other coins might go up faster than ethereum or bitcoin, but it is also likely that they will drop much faster as well. What's important isn't the gains you make, but the gains that you hold on to. My advice to myself and others just getting into the market is to build a nice bitcoin and ETH position before focusing on anything else. That is truly all you need to do to be successful. Once you finally reach a point in your accumulation of these two coins that you are satisfied with, then you are finally ready to branch out to other coins if you desire. After years of accumulation, I have finally just reached that point myself, but still I prefer to buy more BTC and ETH, rather than buying other coins. Focus on building your foundation first, before trying to build your tower or sky scraper.
How about you? What has been your recipe for crypto success?
As always, thank you for reading!
thats great to see this. i like your idea.