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Building wealth is possible through cryptocurrency -- but so is losing a lot of money.
Key points
- Cryptocurrencies are volatile, and timing investments is difficult.
- There's potential to make a lot of money, but it's also likely you could lose your investment.
- Time-tested strategies are more predictable.
There are plenty of stories about cryptocurrencies that have turned small amounts of money into huge sums over a short period of time. There's even lots of news about crypto millionaires who got started young with a small investment, then ended up with huge bank accounts.
After hearing about big price increases in virtual currencies, you may wonder if it's possible to get rich via crypto investing alone. If you're considering this strategy, here's what to know.
You could get rich with crypto investing -- but you may also lose everything
If you get lucky with your crypto investment, you could make a fortune -- even if you haven't invested a lot, and even if you've only owned the assets a short time.
The reason this is possible with cryptocurrencies is that they can be very volatile. It's possible that a particular coin will capture the attention of the right celebrity or will catch on as a social media sensation, and its price will rise quickly and dramatically.
Since the prices of cryptocurrencies are speculative, and since virtual coins are a newer and less time-tested asset class that appeals to investors willing to take on more risk, it's more likely that crypto investments will see rapid -- and often unjustified -- price increases compared to assets that attract more cautious investors.
The catch, however, is that you need to pick the right coin and buy at the right time to get rich through your investment. And it's really difficult to do that -- often, the factors that drive up the price of a coin are completely unpredictable. People aren't necessarily attracted to a cryptocurrency for investment because of the technology behind it, or its adoption among merchants as a real-world currency.
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If you jump on the bandwagon too late, or you pick a currency that doesn't get the right kind of attention, it's just as likely that you'll lose a fortune as make one. That's why even crypto enthusiasts such as Elon Musk warn not to "bet the farm" on crypto.
What should you do instead if you want to get rich?
If you hope to make a profit through investing, it's best to follow a time-tested approach: Regularly buy assets with a proven track record, such as an S&P 500 index fund that tracks the performance of around 500 or so of the largest U.S. companies.
You might include some cryptocurrencies in your portfolio if you believe that they have potential for growth. But you want them to be part of a diversified portfolio so you can maximize the chance of earning generous returns and reduce the risk of outsized losses.
You'll also want to research virtual currencies carefully to buy them for the right reasons and be comfortable holding them for a long time. This maximizes the chance that your investment pays off in the long run, and helps you build wealth over time.
FAQs
This means that it's possible to generate life-changing gains with crypto, but that many crypto projects have also failed. To minimize the risk of losses and maximize your chances of getting rich with crypto, research each project thoroughly and ensure your portfolio is well diversified.
Which crypto coin can make me millionaire? ›
Top 10 Cryptos to Hold Become a Millionaire in 2025💥
- Bitcoin: Bitcoin needs no introduction as the pioneer of cryptocurrencies and the flagship digital asset. ...
- Ethereum: ...
- Binance Coin: ...
- Cardano: ...
- Solana: ...
- XRP: ...
- Polkadot: ...
- Chainlink:
Cryptocurrency can help you earn interest on your investments. It is done through a " yield farming process," where you lend your cryptocurrency to a platform in exchange for interest. The amount of interest you gain will solely depend on the platform and the type of cryptocurrency you are lending.
Can you still make money off crypto? ›
Crypto Lending
You can generate passive income by lending your cryptocurrency to borrowers through platforms like BlockFi, Celsius, or Nexo. The main advantage is the ability to retain ownership of your assets while still earning returns. But this method comes with its own set of risks.
Can you make $100 a day with crypto? ›
Can you earn $100 a day trading cryptocurrency? Absolutely! If you're new to crypto day trading, here's what you need to know to make money. The most effective way to make $100 a day with cryptocurrency is to invest approximately $1000 and monitor a 10% increase on a single pair.
How long does it take to become rich from crypto? ›
While this is a lower-bound scenario, we can use it as a baseline to show what it takes for investors to become Bitcoin millionaires. Assuming an annualized return of 30%, one would need to invest roughly $85,500 annually for five years to hit millionaire status. Over 10 years, this number falls to around $18,250.
How much will 1 Bitcoin be worth in 2025? ›
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 67,697.84 |
| 2026 | $ 71,082.73 |
| 2027 | $ 74,636.86 |
| 2030 | $ 86,401.50 |
1 more rowConclusion. In the dynamic landscape of cryptocurrency, these ten coins, including TRON, Shiba Inu, Astar, Kaspa, Dogecoin, Stellar, Kava, Polygon, Cronos, and VeChain, present diverse potentials for reaching the $1 milestone in 2024. Investors keen on penny cryptos have a spectrum of options to explore.
Which coin will reach $1 in 2025? ›
By the time 2025 rolls around, Ripple tokens should be worth at least $1 each, revisiting a price level last seen in the fall of 2011.
How fast can you make money in crypto? ›
Day trading Bitcoin may offer the possibility of making $100 a day, but it comes with high risks. Bitcoin's price can be unpredictable, and successful day trading requires extensive knowledge, experience, and constant market monitoring.
Making $1000 a month with crypto is possible, but it's important to understand the significant risks involved. Here's a breakdown: The Potential: Yes, some people do achieve consistent profits in crypto, but it's not guaranteed.
Which crypto for quick profit? ›
What is the best crypto for a quick profit? Altcoins like Pepe Unchained and WienerAI may provide higher returns for investors seeking quick profits, but thorough research is crucial before investing.
Can you still become rich with crypto? ›
The truth is that you can get rich by investing in crypto, but making money in crypto is the same as making money with any type of investment. To become rich, you have to do your research, work with a financial advisor, follow specific markets and make trades at the right time.
Should I just cash out my crypto? ›
Reasons for cashing out crypto or Bitcoin
The decision to cash out crypto or Bitcoin depends on your financial goals and market conditions. You may want to lock in gains, cut or harvest losses for taxes, or simply use your digital assets in the real world. It's crucial to consider tax implications and market timing.
How to get 1 Bitcoin for free? ›
How to earn free cryptocurrency: 11 easy ways
- Sign up with an exchange. ...
- Crypto staking. ...
- Free NFTs. ...
- Learn and earn. ...
- Crypto savings account. ...
- Crypto lending. ...
- Get cash from a brokerage. ...
- Participate in an airdrop.
But some seem to have found more success with crypto, and now have holdings worth millions or even billions of U.S. dollars, according to Henley & Partners. The firm's report on Tuesday says says 88,200 people have crypto assets worth at least $1 million — less than 1% of overall crypto users.
Is it too late to get rich from cryptocurrency? ›
No, it is not too late to buy cryptos. There's still time to potentially strike it rich in this crypto boom cycle. That's why we just issued new Buy Alerts on several cryptos that we feel are prepared to soar in the Fourth Crypto Boom Cycle's second half. You didn't miss the boat.
What will Bitcoin be worth in 20 years? ›
Fidelity Predicts: $1B per 1 BTC by 2038 — 2040
It claims the value of Bitcoin will grow steadily to about $1 million per full Bitcoin by 2030.
Will 1 BTC make you rich? ›
If you are hoping to become rich by owning 1 Bitcoin in the short term, it probably won't happen. Even if Bitcoin went to $1 million tomorrow, due to inflation that might not be enough to make you rich. However, on a long enough timeframe owning 1 full Bitcoin certainly could be enough to make you rich.
