The Blueprint to Becoming Rich in Crypto
While the technology of cryptocurrency is incredibly exciting and has the potential to change the world. The truth is that most of us likely originally entered the crypto market with hopes of changing our lives financially. This could mean different things to different people. For some, this would mean finally paying off their debt and no longer living paycheck to paycheck. For others, this could mean finally having a nest egg in their savings that finally gives them a financial cushion. And for others, it could mean finally being able to retire and go after their true passion. Whichever goal you have in mind, if you are investing in the crypto market it is likely that you are hoping crypto will be a tool to allow that dream to come true.
There is a general stereotype that becoming rich via cryptocurrency is easy. All you need to do is pick any random coin, and wait for the money to roll in. But as you can imagine, nothing in life is that simple. In fact, investing in the cryptocurrency market will likely be one of the most difficult things you ever do. Testing you mentally like nothing you have experienced before. Those who can survive and stay in the market have a much better chance of being successful in crypto, but even then it isn’t guaranteed.
So what should we do?
Everything would be much easier if there was a crypto blueprint that we could follow that would show us the correct path to take, what we need, and also what we need to be careful of. You are in luck, today’s article is that blueprint that will tell you the general ideas and things you need to do to have success in cryptocurrency.
Time
Many people want to invest in crypto and become rich quickly. They are short-term traders who will often take extreme risks and invest in questionable projects. We are not those people. Instead, we must have a long-term timeline of at least 10 to 15 years. We will be growing our wealth in the best way possible, slowly and steadily. Everyone always hates to hear it, but the best way to build wealth that lasts is to do it slowly. Boring investing is typically the best method.
Time in the crypto market is your best friend. You will be able to live through many cycles and begin to see how this market truly operates. You will begin to understand that you need to be more reserved while the market is in FOMO mode when prices are skyrocketing. You will also learn that you need to be more aggressive when the market is down deeply. There is a way of thinking in crypto that I have become fond of over the years:
You can see great gains during your first bull cycle. During your second bull cycle, you can become rich. During your third bull cycle, you can become wealthy. Always be building your portfolio.
Investing in the Quality Projects
As I mentioned before, we need to have a long-term timeline and therefore we should only be investing in high-quality projects. We are not traders, and likely won’t have good timing therefore it is better to avoid those questionable projects. Which likely either won’t be around in 15 years, or its value will have greatly decreased when compared to Bitcoin or Ethereum.
The fact is that crypto is an incredibly young market and we have no idea which projects will be around for the long haul, or even what the market will look like in the future. There are currently only two blue-chip cryptocurrencies, Bitcoin and Ethereum, and everyone needs to have a significant portion of these in their portfolio. They are the name of the game in crypto. After you have built a position that you are happy with, then it is okay to begin trying to find other up-and-coming crypto projects to begin investing in.
Many people feel that perhaps Bitcoin or Ethereum don’t have much future price potential. But if crypto adoption continues to increase, the sky is the limit for both of these assets.
Invest as Much as You Can
Many view crypto as the lottery ticket that can make you rich. That you can invest a very small amount of money and become wealthy. For 99.9% of people that is a fictional dream that will never come true. As in all investing, it takes money to make money. The more that you invest, the better chance you will have to see higher gains. With this in mind, you need to be investing as much as you possibly can.
This is a dangerous path to go down, however. You should never be investing money that you cannot afford to lose. Always pay your rent, food, and bills before you put a dollar into crypto. After you have done all of that, then you can have free rein to invest heavily in crypto.
Passive Income
Albert Einstein pinned compound interest as the 8th wonder of the world and it will be one of the greatest tools to help you become wealthy from crypto. Especially with our long-term investing approach.
The best way to earn passive income in crypto is by staking. Nearly every proof-of-work blockchain allows you to “stake” your crypto to help strengthen the security of the network or for voting on protocols. Ethereum, Polkadot, Solana, Cosmos, Internet Computer, and many more offer staking opportunities.
In the past, lending out your Bitcoin and other crypto to 3rd parties was a great way to earn a passive income. However, due to everything that happened last year, I can no longer recommend that method. However, it might improve and be an area to look into years in the future.
Be Active
One of the best things you can do in the cryptocurrency market is to simply be active. By reading all of the current news, participating, and experimenting with many of the new projects. This is one of the best ways to become eligible to receive airdrops. Personally, I have received thousands of dollars worth of airdrops during the last crypto cycle and it could have been much more if I would have been more active.
Avoid Self-Inflicted Mistakes
It takes a very long time to build a great portfolio, a passive income stream, and finally be on the path towards becoming rich with crypto. However, it can all be lost in an instant.
With crypto, you are responsible for your own actions and decisions. No one will be holding your hand to help you make correct decisions, or refund you if you make mistakes. This means you need to always be focused and careful each time you are doing anything in crypto.
Some of the common mistakes people make in the crypto market include:
Being liquidated from leverage trading Losing funds on 3rd party lending services Sending crypto to the wrong address Having your wallet hacked Losing your keys and access to your crypto And many more.
**Patience **
It sounds like incredibly basic advice, but one of the keys to having success in crypto is having never-ending patience that cannot be shaken. Being patient when your portfolio rises during the bull run and not selling. Being patient during the bear market when your portfolio has dropped by 80% or more. The patience to hold on and live through many crypto cycles while continuing to invest. Always remembering that this is a long-term play. That today’s price movements aren’t important. That is a skill that you must learn to survive in the crypto market.
By these mindsets and doing all of these things you will have perfected the blueprint to becoming rich in crypto and will be well on your way to having success in this market.
*How about you? What is your blueprint to having success in crypto?
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