How Much I Need To Invest To Become A Millionaire in Cryptocurrency
Should you go ahead with cryptocurrency investment? What are the views of experts about it?
People are looking at options to increase their wealth considering the current inflation scenario. With the interest rates of banks decreasing day by day and inflation surging rapidly, it’s important for you to save money for your future uses. That’s is the reason why people are searching for investment avenues for saving their money for the future.
They are analyzing which investment would give them good returns so that they can lead a peaceful life during retirement. Some of them are investing in stock markets with the hope that their investment would increase rapidly in the future. Some of them are depending on pension plans and insurance for securing their future.
Some smart investors are diversifying their investments with the hope that they could survive the onslaught even if one of their investment strategies failed. They believe that with diversification they stand a better change to stay afloat during retirement.
And there are some investors, who want to take a risk and increase their potential to become a millionaire in future. They believe by investing in cryptocurrencies, they can become a millionaire one day. There are several successful stories of people turning millionaire by investing in crypto. Let’s find out how is it possible for you to become a millionaire with an investment in cryptocurrencies.
Let’s take the case of 19-year-old bitcoin millionaire Erik Finman to understand the enormous possibilities to make money by investing in crypto. According to him, $1,000 is a good enough investment in cryptocurrency.
He started investing with an amount of $1200 that was gifted by his grandmother when he was a 12-year old boy. He used that $1000 to buy his first bit coin and became a millionaire six years later. Incredible, isn’t it? It took only six years for a teenager to become a millionaire! Amazing indeed!
Finman now has around 401 bitcoins and his worth is more than $3 million when calculating the current price. He is of the view that youngsters should invest 10 per cent of their income in top cryptocurrencies, especially bitcoin. “I’d just put it into bitcoin. I think bitcoin is the safest cryptocurrency right now,” he was quoted as saying in a CNBC interview.
Reason for caution
Well, you might have read several success stories like that of Finman but you have to be careful while investing your hard-earned money in new technologies. You might have a chance to increase your wealth substantially but there is also the possibility that you could lose your entire money. Many economic experts have cautioned people from investing in bitcoin, especially considering it volatility. It could go up to $16,000 one day and can drop to $8,000 in another week. That much volatility could not be good music for all investors.
According to JPMorgan Chase CEO Jamie Dimon, the cryptocurrency is “a fraud.” “It’s just not a real thing, eventually it will be closed,” he was quoted as saying in a report. Some experts are of the view that cryptocurrency is equivalent to gambling.
However Finman, who tasted success within six years with his investment in bitcoin is bullish about the coin’s future. “Putting money into bitcoin right now is good. That may change because there may be a better solution. But I think that better solution will be very obvious and will be a long time coming so you can make that switch. Cryptocurrency represents the largest transfer of wealth our generation has ever seen,” he wrote on Twitter. “Never before have young people been able to change economic classes so quickly,” he said.
What are your chances?
Again, you have to understand the timing of your investment. If you have invested at the right time in crypto, chances are there to be a millionaire. For example, imagine that you had invested $1,000 in Bitcoin 10 years ago. In that case, you would have earned around $15 million today.
So would you like to go for this investment now? You have to follow the same policies of investment here also. You have to assess the risk potential in investment and analyze whether you could afford a loss if some of your investment decisions go wrong. If you can take risks in investment, you can try new technologies as well.