It’s highly unlikely that with a coin that you don’t have conviction in that you will ride out the 100x let alone even a 10x. If you only put in $100, you’re not going to make anything.
In 2019, 1% of the adult population, or 51.9 million individuals, were millionaires. Today, there are 56.1 million millionaires making up 1.1% of the population. It takes the typical investor 32 years to get rich. The average age to make your first million is 50.
Millionaire stats: https://balancingeverything.com/millionaire-statistics/
This next section isn’t to discourage you from investing in crypto, but to help you be more rational in your investing and expectations. I’ll attach some sources and then speak to them.
Not everyone is getting rich from crypto: https://www.investopedia.com/news/no-everyone-not-getting-rich-bitcoin/
62% of investors believe cryptocurrency will make them rich: https://www.newsweek.com/majority-crypto-investors-believe-it-will-make-them-rich-1583964
Just like how with NFTs, distributors and artists are getting rich, in crypto investing, it’s mostly exchanges and founders making the money: https://www.fool.com/investing/2018/01/28/whos-really-getting-rich-in-bitcoin-and-cryptocurr.aspx
A lot of people are losing money investing in crypto because they get into rug pulls, scams, sh*tcoins, here are some examples of people losing tons of money: https://www.cnbc.com/2018/08/20/after-the-bitcoin-boom-hard-lessons-for-cryptocurrency-investors.html
The important thing to consider is dollar cost averaging versus lump sum investing, trying to buy dips versus buying when crypto rises, and only investing in cryptocurrencies with good fundamentals.
Here’s some startling statistics on day traders: https://tradeciety.com/24-statistics-why-most-traders-lose-money/
A few statistics that really jump out at me are:
· The average individual investor underperforms a market index by 1.5% per year.
· Active traders underperform by 6.5% annually.
· Traders with up to a 10-year negative track record continue to trade.
This article very succinctly explains the nuances of this. Crowds creates trends that continue until everyone gets on board, then it reverses. This means that only a small percentage can actually win. Also the main reason why people sell at a loss (and most do) is due to social influence.
You will more than likely succumb to the psychological behaviors that constantly affect your financial decisions, especially when investing. I will cover this in more depth in the future, but many in the space can understand the basics of how FOMO, FUD, panic buying, and panic selling can completely ruin an entire portfolio.
Approximately 60% of former NBA players go broke within 5 years of retiring while 78 percent of former NFL players have gone bankrupt or has some sort of financial stress within 2 years of retiring.
Do you agree? Are you looking to ger rich quick? How does stock investing differ from crypto investing? Are people’s expectations realistic? Let me know what you think about this in the comments below and don’t forget to subscribe!
*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*
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