How Much Crypto Do You Need?

The question that everyone in this market wants to know is; How much crypto do you need? Nearly all of us in this market are striving for the same goal. Hoping to change our lives financially and possibly even become rich. Thankfully; this is very possible in this market. Once we have that goal in mind, we then need to make a plan and work hard to make that dream a reality. But how much do we need to make this happen?

The answer to that question is something that most people won’t like hearing. Simply, we will need more and also less crypto than you think. Let me explain this thought in more detail.

You’ll Need More Crypto Than You Think

In the cryptocurrency market, there is a stereotype that anyone can become rich overnight by simply investing a few hundred dollars in the correct coins. While it is possible, we must be realistic and admit that most of us will never be that lucky. This will never happen to us.

This brings us to the age-old famous phrase in investing, “It takes money, to make money.”

At the moment there are only two cryptocurrencies that I would consider to be blue chips; Bitcoin and Ethereum. They both have the potential to change the world and still see great price increases in the future. However; you will not become rich by just investing a few hundred or thousands of dollars into them. You’ll see great gains but won’t become rich.

As time goes on; it can be your greatest tool to help the value of your assets increase. But it can be your biggest adversary as well. As the years go by, inflation will eat at the value of your assets. Twenty years ago, 1 million dollars would have been considered a lot of money and would be enough to retire comfortably. Fast-forward to today, and the same amount of money isn’t considered to be as large and maybe isn’t enough to retire early.

For example, if you invested $1k in Bitcoin or Ethereum and they went up by 100x. You’d have $100,000. If they went up by 200x, you’d have $200,000. This is a lot of money and would be life-changing for many people. But, it wouldn’t be enough to make you rich.

But, You’ll Also Need Less Than You Think

With that said, you’ll actually need much less crypto than you might think to become rich. In most financial markets you’ll need several hundreds of thousands of dollars invested and then also see great gains in these markets to become wealthy. However, in real estate or stocks, seeing a 2x in your portfolio can take several years. However, during the crypto bull market, that would be a slow month.

What this all means is that your portfolio could potentially grow at a much faster rate in this market compared to others. Cryptocurrency as a whole is very young and has yet to discover its full potential.

The golden standard for accumulating goals has always been to own either 1 full Bitcoin, or enough Ethereum to run your own validator, which is currently 32 ETH. However, this is a number that is likely to decrease over time. So let’s move that goal down to accumulating 16 ETH. Currently, 1 Bitcoin would cost you nearly $22k, and 16 ETH would be about $24k.

The thought is that these are the only two must-own assets in this market. Bitcoin is what started this whole market. It is the most decentralized, secure, has a set issuance, and is the strongest form of money. Ethereum has the largest adoption of any of the smart contract blockchains. By running your own ETH staking validator, you’ll be able to earn great passive income for years to come. It’s thought that achieving the golden standard and owning one of these will be enough to make you rich in the cryptocurrency market. If you can accomplish both goals, you’ll have an even better chance.

While owning as much Bitcoin and Ethereum is the name of the game in the cryptocurrency industry. There are ways to speed up your progress. Many people like to invest in lower-cap altcoins which often appreciate in value must faster, and then trade those for more ETH or BTC. During bull runs, it can be a great strategy to increase your portfolio size. However, always remember that altcoins will also drop in value at a must faster rate and opens you up to even more risk.

You can become very rich by investing in cryptocurrency if you can work hard, have patience and stay in the market. It will require more money than most have to spend initially, but also a lot less than what is required in other financial markets. At the end of the day when people ask me how much Bitcoin or Ethereum they should own. I always tell them, “As much as you possibly can.”

How about you? How much crypto do you think we need to have?

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