Will cryptocurrency make you rich?
Be honest… this quintessential cryptocurrency question has popped into your head at least once (definitely more than once).
You’ve probably heard that your brother’s friend’s friend made a fortune on the hottest new crypto!
If it happened to that lucky son of a gun, why not you?
Let’s consider whether cryptocurrency will make you rich.
Afterwards, be sure to check out the best cryptocurrency to invest in 2022.
Plan Of Action
How To Get Rich From Cryptocurrency.
Making a quick buck on cryptocurrency certainly sounds nice!
Whether you’re a crypto newbie or a bitcoin veteran – everyone wonders if cryptocurrency could one day make them rich.
The short answer is that, yes – it could. However, it’ll be hard work, and there are some strategies that you should definitely follow.
Of course, before discussing these cryptocurrency investment strategies, remember that I’m not your financial advisor. Any strategies and investments that I mention are my educated opinions.
Anyone online who doesn’t admit this when talking about crypto should simply not be trusted – especially if they describe themselves as a cryptocurrency wizard or guru!
So, before you jump feet first into the crazy world of crypto, make sure you also do your own research.
“Will Swing Trading Cryptocurrency Make You Rich?”
Swing trading cryptocurrency basically means buying low and selling high – quickly.
Sounds pretty easy right?
The strategy takes advantage of the crazy volatility of many cryptocurrencies.
By volatility, I mean how quickly a crypto rises or falls in value. Bitcoin can literally vary by $1000’s within a few hours!
To make swing trades work, you must place a buy order and a sell order. Make sure the orders are within the volatility range of one another. When movement happens in the crypto market, you can be reasonably assured that you will come out with more money than you had before.
The downside to this is that since crypto is so volatile, you may have only one (or neither) of your orders actually go through. This happens if the prices rocket in the opposite direction. This is a risk whether you are swing trading just one currency, or swing trading between two.
Nevertheless, make sure you practice swing trading before doing it with large sums of money. There are apps for that!
To start trading for real, we recommend using Coinbase – it’s a safe and easy platform. Plus you get $10 FREE bitcoin if you sign up using our link and purchase $100 of any crypto.
Buy And HODL!
“Will HODLing Cryptocurrency Make You Rich?”
Another way of making money with cryptocurrency is to just Buy and HODL. This is almost the exact opposite of swing trading.
If you’re not familiar with crypto lingo, HODL means “Hold On for Dear Life”. This translates quite literally into buying crypto and then enduring the hellish rollercoaster of inevitable market volatility.
At the outset this sounds like the easy option. It’s not.
I’ve ridden the depressing downward trend of a crypto bear market. Let me tell you – not fun.
Imagine watching your previously profitable crypto portfolio fall over 90% in a week!
Now imagine trying to sit calmly and wait for everything to just blow over. And to even buy more whilst it’s crashing!
It’s the equivalent of buying a new house and standing watching peacefully whilst 90% of it burns to the ground. Then buying some of the immediately adjacent house… despite the flames continuing to roar!
IF you decide to HODL, please read this guide on how to keep your crypto safe.
This takes a special type of person, however….
Examples of HODLing
Take, for example, Bitcoin. If you had spent $100 when Bitcoin was a mere 10 cents (USD) you would own 1,000 Bitcoin. As of September 2021, Bitcoin is valued over $42,000 USD for one Bitcoin.
This means that had you invested $100 and “HODL-ed” you’d be the proud owner of over $42 Million dollars. All because you weathered the storm and held on. Congrats hypothetical you!
Obviously today this is a potentially less profitable strategy on the larger and more popular coins. Nonetheless, with some up-and-coming coins like MATIC, Cardano and Solana, the HODL strategy is still alive and kicking in the crypto community.
A cool HODL fact is that multiple times in this year alone, cryptocurrencies have hit their all time highs (ATH). At these precise moments in time, every person to ever buy that cryptocurrency would be in profit. Cool huh?
That is, unless you sold before that point? (you got those paper-hands)
With that in mind, I’d personally opt to always HODL at least some of my cryptocurrency portfolio.
Many cryptocurrency advocates would suggest always having key cryptocurrencies like Bitcoin and Ethereum in their portfolio.
Dollar-cost averaging provides the answer for most people – buying a set amount of a coin on a set date each month. This avoids trying to time the market (which you cannot do) and provides a “set it and forget it” strategy. Basically, it’s like an automated savings account.
As you can see, HODLing can most certainly make you rich with cryptocurrency, but it’s all about your choice of coin and just how long you’re willing to wait.
“Can You Get Rich Day Trading Cryptocurrency?”
Another strategy is to consider Day Trading your cryptocurrencies. This requires significantly more technical knowledge of trading and crypto.
If you possess the technical know-how, the analytical skills, and the patience (rather, nerves of steel) then you may be able to day trade cryptocurrencies. You could then capitalize on short-term swings in small or large currencies.
According to many traders, day trading is one of the best ways to get rich off of crypto. However, just remember that you really need to know what you’re doing. You need to be plugged into the right software and platforms —because even missing the peak by a couple of minutes could cost you big time.
Dividends And Staking
“Can You Get Rich From Cryptocurrency Dividends And Staking?”
Another way to make money from crypto is to earn dividends from high-paying coins.
It’s important to note that not all coins pay dividends. Some of the best dividend-paying coins include:
- NAV Coin
All these coins have annual returns ranging between 2% and 10% and can pay dividends on your investments, which can be a great way to boost your returns.
Similar to this is a process called Staking. Staking involves holding coins in a live wallet, which can up to double your earning potential. These secured in that particular network.
This can be thought of as placing the coins you bought back into a wallet to help fund a currency, which can then lead to a double pay out later when the currency rises. Only some coins offer staking, so make sure to do your research to see which are available.
Other Ways Cryptocurrency Can Make You Rich?
Another one of the most common forms of earning money through cryptocurrency is NFTs. NFTs are relatively new facets of cryptocurrencies, involving the purchase, creation, and sale of non-fungible tokens (NFTs).
An NFT is simply a unique digital asset that cannot be traded for something else. Rather, they are auctioned off, bought, and sold on NFT marketplaces (like OpenSea) using a cryptocurrency.
So, if you are creative and have a knack for digital art, memes, or music; or, want to sell digital assets like trading cards, domain names, and collectibles—then NFTs could be a way for you to earn some crypto on the side.
One of the last ways to get rich off of crypto is to incorporate it into a larger portfolio of ETFs, Stocks, and Bonds.
This give you the opportunity to realize some of the great gains of crypto, while being less exposed to its negative volatility.
Having high risk, high return investments at a young age is much more palatable/sensible than as you get older.
Summarising Whether We'll All Get Rich From Cryptocurrency
At the end of the day, it is important to always invest wisely. Cryptocurrency is a volatile market that is still new, and still misunderstood. Poor Crypto.
To come back to our question of will cryptocurrency make you rich? — the answer could still be yes. The most prolific rises in cryptocurrency wealth may have already happened (think buying Bitcoin for a few cents and holding until $40k). However crypto remains a huge market with opportunities around every corner.
Use and combine the strategies above and always make sure to do your research before you invest.
Just please remember that without lots of money and lots of practice, it won’t be a “get rich quick” scheme. It will take time and patience. If you do invest properly, crypto is indeed a viable option to drastically increase your net worth. But it comes with risks.
What do you think? Is there still scope to get rich from cryptocurrency?
Now it’s time to check out the best cryptocurrency to invest in 2022!