ionicXBT
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How To Become A Millionaire in Crypto. (Part 1)
🕑 Added 2023-09-27 19:19:49 +0000 UTCThis is a no Bullshit and honest guide based on more than 6 years of deep experience in the crypto space.
Let me get straight to it.
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Fix your mindset.
The reason why you lose quickly is because you THINK you can win quickly.
That's NOT how you win in this game.
Small Steps, Long-Term Patience.
Get rid of the 'get rich quick' mindset.
Crypto success is made on PATIENCE and DISCIPLINE above all else.
Many people have seen their wealth DISAPPEAR because they lacked the patience to HOLD onto promising projects.
In fact, this previous bull market has witnessed more losses from quick decisions to sell assets that should have been held, rather than from holding onto investments that should have been sold.
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Achieving success in crypto is a TWO-WAY approach.
First, you need the SMALL steps of work – the ability to stay updated with the latest trends and narratives.
If you fall behind it can COST you the opportunity of a lifetime.
Then with that comes the Second step - Long term patience.
This is implementing a consistent and disciplined strategy, such as dollar-cost averaging and buying the dips, to secure favourable entry points.
It also means having the endurance to hold onto promising projects even as they surge 2x, 5x, 10x, 50x, or even 100x+.
Remember:
- If you can’t be bothered to research crypto, you won’t make much money. (You are lucky to have me as I will do the research for you.)
- If you can’t HODL during market corrections, you simply don’t deserve the profits of the bull run.
- If the market presents you with more AFFORDABLE prices during this bullish trend, TAKE the opportunity.
With ongoing money printing from the FED, it seems like we're on an "ONLY UP" trajectory for the foreseeable future.
Because of this, Time in the market will BEAT timing the markets.
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So now that you have a good mindset, what are the ways?
First, you need to understand making £1 million in crypto depends on 3 factors.
It is very simple.
1. How much money do you have?
2. How much risk you’re willing to take?
3. How much knowledge do you have about these projects?
You have to decide where you place your risk tolerance.
In INVESTING the earning potential you can make can be a 10% return, 50% return, 100% return, or 1000% return, but it’s CORRELATED with the risk.
So the more chance you take, the better the return you’ll get.
If you have a high-income job versus a low-income job, that will change the investments that you make and the size of your portfolio.
How?
Because if you only have £10,000 to invest, you’re going to take a lot MORE risk than someone who has £100,000.
And so, everyone has a different risk tolerance, and some people are naturally happy to take more risks. Others are very risk-averse, and they don’t want to lose money no matter what.
And everyone has a different goal.
Some people are happy to wait ten years, 20 years, or even 30 years.
In this case, we’ll take a time horizon of 3 to 5 years - one cycle
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• Scenario 1:
This is the LEAST risky option.
If the crypto market is expected to GROW by a factor of 5 over the next 3–5 years.
That means it would take £200,000 of your OWN money.
So, in general, you’re going to pay one of two ways either you invest with your own money, or you’re going to take more risk.
And so if you want the LEAST amount of risk in the crypto market, it will cost you more money,
So £200,000 is needed to get a 5x return.
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So now, what assets are you going to invest in?
So usually on the least risky option.
Most people would SOLELY focus on the top 10 crypto projects.
That's wrong - why?
Previous cycles have shown that each top 10 is replaced by a new top 10.
So instead you want to focus on strong teams that are reputable with high valuations - not just the top 10.
And so, in the first place, we find Bitcoin at almost $16,000.
In second place is Ethereum at $1,090, so generally, the higher you are, the less risk you take.
Based on the price predictions over the next 3–5 years, it’s possible to get with the least amount of risk a 5x return over 3–5 years.
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So why is it the least risky cryptocurrency?
It’s because they have one of the LARGEST market caps.
The higher the market cap the LESS risk.
Also, companies and institutions have chosen it.
And indeed, Ethereum has established itself as the most exciting crypto project for its decentralized applications; it is on Ethereum that we find the most exciting applications in decentralized finance, DeFi, and the NFT sector.
And so, for scenario number one, you would theoretically only need LARGE CAPS.
Today, bitcoin is around $26,000. We had a peak of $67,000 on Bitcoin during the 2021 Bull Run.
So we could easily project bitcoin at $100,000 over the next 3 to 5 years.
And so, the LEAST risky option in the current environment and with the data we have today is investing in Bitcoin only.
And if you want to make $1 million, you must invest at least $200,000 in Bitcoin minimum.
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• Scenario 2 :
This is the BEST option for most people.
Why?
Because it’s the most attractive scenario between RISK and REWARD.
And it’s based on the assumption that you can get an x10 to x20 return over the next 3-5 years in crypto - (With me that is NOT a lot.)
Meaning you only need £50,000 to £100,000 of your OWN money.
And so it’s POSSIBLE to turn £50,000 into £1 million.
And it’s also more feasible for a lot more people.
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So which crypto currencies should you invest in?
Not Bitcoin.
Why?
It already has a market cap of almost $400 BILLION.
And to get a return of x20 and even x10, it’s going to require a lot more MONEY.
So you’re going to have to go LOWER on the risk curve.
And so that means you’re NOT just going to invest in Ethereum.
YES indeed, Ethereum in the next 3 to 5 years will do a 10x which is entirely possible.
But, we can diversify with other more SPECULATIVE crypto projects.
And so we’re going to look for cryptocurrencies in the top 10 and the top 20.
For example, CHAINLINK project, which I REALLY like.
Also projects with higher valuations like POLKADOT, MATIC, SOLANA, and CARDANO.
You see how in this second scenario, I would STILL stay in the top 20.
You see a project like COSMOS, which is at about 2.5 billion dollars in valuation, we only have to reach 80 billion dollars in valuation over the next 3 to 5 years, which is half of the valuation of Ethereum today.
So you would go for coins such as $SOL, $ADA, $LINK, $MATIC, $XMR, $RNDR, $IMX.
These are at the top of the list with high valuations that will stay STRONG next cycle and not be EASILY replaced.
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• Scenario 3:
The RISKIEST option is based on the assumption that your crypto will grow 50X over the next 3–5 years.
I have done this before.
This was me in the previous cycles so I will show you how to do it this cycle - STAY WITH ME.
The most significant ADVANTAGE of this option is that it requires the LEAST amount of money to turn less than £20,000 into £1 million over 3–5 years.
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Now, this time, in just 3–5 years, it’s NOT going to happen in the top 10.
You'll have to go WAY down the risk curve and drop below the top 20.
And the sweet spot here is to look at a cryptocurrency with LESS than a $500 million MARKET CAP.
And so that means looking at projects like:
- ALEPH ZERO, symbol AZERO, has a valuation of $200 Million.
- IMMUTABLE X of symbol IMX today has a valuation of $500 Million.
- CONSTELLATION with the symbol DAG, has a valuation today of $30 Million.
- VECTORSPACE with the symbol VXV has a valuation of $10 Million.
You see below the $500 Million market cap, it’s still risky, but that's where the MONEY is.
And so what you need to do in scenario number 3 is look for projects that are in between the Top 40 and the Top 100.
Anything below is either through insider information from hedge funds or Venture capital.
That is where I got information from for ENJINSTARTER.
Keep in mind the assumption that cryptos will be adopted over the next few years.
The ETF will be approved.
The Bitcoin HALVING is coming close.
This means some cryptos will grow way over 50x over the next 3.5 years.
And so they say that bull markets make you money, but bear markets can make you RICH because the prices are collapsing, so you have more upside potential in the current market.
So YES, you CAN make £1 million investing in projects, especially over the next 3 to 5 years.
Just stay with me.
Part 2 is where we will go more technical.
See you then.
@ionicXBT
Comments
Thanks again! I have been in the patreon and discord for a longer time and starting to align with your thinking. I literally was thinking of the projects before I even read them in scenario 3. Azero, DAG, EJS which I am all DCAing in. This is all due to your teachings and I really appreciate this from my heart!
Good read . Thanks.
