There's no denying that some cryptocurrency traders have become millionaires thanks to their successful investments. What's not as often discussed is the great number of people who have lost significant sums trying to become rich by investing in crypto.
Many people have become crypto millionaires because they've, well, bought low and sold high. But there are also various kinds of crypto millionaires, the crypto entrepreneurs who have the necessary business acumen to create world-changing solutions.
The owner of a cryptocurrency holds his or her assets in a virtual wallet or on a storage device, such as a USB drive. So, while stocks provide stability; cryptocurrencies are riskier investments that while they offer the potential for great rewards, they also represent greater risk.
Whether you should invest in cryptocurrencies depends on your goals and preferences as an investor, as it does with any asset or security. We suggest that clients approach it as a speculative investment and consider the high volatility and risks involved.
The question, “Is it too late to invest in crypto?” conjures 29,800,000 results in Google. And many of these results offer the same response: It's never too late to get invested.
Buy and HODL. This is the most common way of earning money from cryptocurrencies. Most investors buy coins such as Bitcoin, Litecoin, Ethereum, Ripple, and more and wait until their value rise. Once their market prices rise, they sell at a profit.
Trade It. The easiest way to potentially earn lots in crypto is to simply trade it. Exchanges like Coinbase offer a wide variety of cryptocurrencies that you can trade, from “OG” cryptos like Bitcoin and Ethereum to up-and-comers, like Solana and Polygon.
Research shows that the average day trader salary is around $109,000 per year. On the other hand, the highest-earning day traders make up to $180,000 per year while the lowest-earning traders make $63,000 per year.
It depends on your rate of return. To generate 4000 a month at a 5% annual yield, you'd need to invest $960,000. At a 10% return, you'd need $480,000. And at a 20% return, you'd need $240,000 invested.
By the time you are 35, you should have at least 4X your annual expenses saved up. Alternatively, you should have at least 4X your annual expenses as your net worth. In other words, if you spend $60,000 a year to live at age 35, you should have at least $240,000 in savings or have at least a $240,000 net worth.
It's Too Late: Crypto Is Going To Zero
Skeptics believe that cryptocurrency is an asset class with no store of value, no barrier to entry and no value as an exchange currency. As such, skeptics view crypto as simply a speculative asset class with no long-term viability as a true asset class.
You should invest in Bitcoin somewhere around 5% to 30% of your investment capital. I consider 5% to be very safe and 30% to be pretty risky. Personally, I sit most of the time between 15% and 50%.
Investing in crypto assets is risky but also potentially extremely profitable. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. A safer but potentially less lucrative alternative is buying the stocks of companies with exposure to cryptocurrency.
Another option for investing 100K for passive income is to invest in real estate crowdfunding. With this option, you allow a company to pool your money with other investors to purchase a property. The company will then rent the property out to tenants and return the profits to you.
If you want to know if it's possible to make a living trading cryptocurrencies, the answer is easy: Yes, it is absolutely possible. More than that, there are a lot of guys making an excellent living by crypto trading.