By now, no one should doubt the authenticity of the crypto community, but it’s pretty sad that some still tag it as a scam. There are several arms of cryptocurrency, and this has made the community so huge and keeps it growing by the day. The crypto community has birthed several millionaires, irrespective of age and status quo. One of the fundamental features of cryptocurrency is decentralization, and it aims at handing over financial freedom to the masses. With decentralization, there’s no such thing as a central authority regarding how finances are being generated or spent. The money is in circulation, and everyone has an equal shot at getting wealthy.
The crypto community, as mentioned above, is large enough to hold as many millionaires and billionaires as possible. Take, for instance, the founder of Ethereum. The crypto community has not only focused its gaze on decentralization, it also made sure it stays decentralized. There are some reasons why several crypto billionaires and whales are called whales presently. Most of them are early adopters. For example, for investors that invested and bought shares in Bitcoin when it was still very affordable, say $1, they are most likely to be billionaires now if they hodl for the long term.
Bitcoin and Ethereum are the top 2 cryptocurrencies and are not looking like they’d be dropping their guard anytime soon. For those Investors that had foreseen the future of these tokens and stored a handful of them when they were still affordable, they are most likely to be the whales of now, controlling the crypto market at will. There are several means of making a fortune from cryptocurrency, and they are divided into two broad categories.
Methods of making a fortune from the cryptocurrency community
For the sake of clearer understanding and seeing the bigger picture, these methods have been divided into two broad categories, and they are
● Long-term hodl:
If you bought Ethereum in 2015 and Bitcoin in 2009, and you still have them in your possession till today, you are a seer and should probably be awarded. Long-term hodl is one effective way of becoming a billionaire in the crypto space. Although it might take years before it finally pays off, the project will inevitably boom if it has solid fundamentals. Several investors would most likely sell their holdings once they have 150% profit from entry. Yes, it’s enticing, and the crypto space is volatile, but if you can’t hodl, you can’t win. One of the key features that come with a long-term hold is portfolio diversification. Some investors don’t understand this term, hence blaming the coin or the developers when they fall victim to massive dumps or sell-offs. As an Investor or a trader, if you buy Ethereum, and you are not sure if you can hodl the token for months or years, move to portfolio diversification which entails you splitting your holdings in whatever percentage you deem feasible—hodl the first chunk in a separate wallet and the other in another wallet. So, whenever you feel the need to spend, spend from the reserve and not the other one meant for long-term hodl.
Long-term hodl takes discipline and self-control to achieve, so it might not be as easy as intended. Some investors would instead lock their holdings in a separate wallet and keep their seed phrases as far away as possible. The reason behind this is to ensure the effectiveness of the investment. Millionaires and billionaires have been made from just holding a particular token for as long as possible without having to do anything else.
This is where most individuals in the crypto community place their focus and attention. The aspect of trading cryptocurrencies is a short-term investment. The ROI is really and could be enticing giving that it’s only in a couple of days before you hit the jackpot. There are, however, several parts involved in reading, and it also has its advantages and disadvantages. One of the categories under trading is leverage trading (futures). Leverage trading encompasses the accumulation of a token as a result of increased collateral. The crypto trading platform offers you a chance of getting more than your capital for every trade you complete in leverage trading. So, your leverage could range from 10X to 100X, depending on the platform. And there are also spot trading, P2P trading, amongst others.
Trading is an active phenomenon whereby an investor engages his intelligence about the market conditions and predicts outcomes over a given period. There are several technicalities involves in trading, and several millionaires have been made from it as well.