It’s Not Easy… But This Is How Real Wealth Is Built Over Time
The most sustainable way to generate wealth in crypto is through long-term accumulation and disciplined investing. Dollar-cost averaging strategies are vital. A very small portion of capital should also go to high-risk investments such as micro-cap projects showing signs of future breakthrough and significance. Essentially, Bitcoin is a long-term investment vehicle.
Most people coming into the crypto space are here to create life-changing wealth. Whether or not they manage to attain it is another story. If you are starting your journey with limited or even zero funds, it can be quite challenging. I know there are many success stories of people who began very modestly and have gone on to create significant wealth.
This is also very impressive when one considers the timeframe, as such success often requires significant capital allocation and many years of diligence and patience. At the end of the day, there are only really two ways to generate significant gains in the crypto space. I will focus on what I consider the best, but let’s first look at the alternative method.
How Crypto YouTubers Built Massive Wealth From Scratch
You would probably have noticed the “success stories” of many YouTubers who were cashiers and taxi drivers a few years ago and are now multi-millionaires! These guys didn’t start with much, but they did create a massive following over the years. Most of them provide technical analysis for trading and then refer their users to trading platforms where they have secured special, exclusive bonus deals.
You do the math; if you have a subscriber count of half a million or more and you are earning trading commissions from a fair amount of them, it can be rather lucrative. That is some serious income potential by any standards. This is how many try to generate wealth in the crypto space, but very few actually achieve meaningful success using this approach.
The Better Way Is To Find Hidden Crypto Gems
This might be the better way, in my opinion, but it is still rather difficult. What makes it superior is that knowledge replaces the massive task of creating a strong following. This approach isn’t really applicable to newcomers, as they don’t have the grounding necessary to spot a gem, which is why many turn to building an audience. Most of the big names on YouTube only arrived in 2017; they are, in essence, still newcomers themselves.
However, even with experience, it can be very tricky. Experience and time in the market are not necessarily a guarantee of making a good call. It does offer a much higher likelihood, though, especially as more seasoned investors are, for the most part, less prone to FOMO. Inexperienced investors tend to think they can make ill-informed investment decisions and still prosper. This is a common deception.
When Multiple Factors Are On Your Side, Wealth Becomes Inevitable
Unlike the massive task of building a large audience, building positions in new and emerging blockchains and blockchain-based projects is much easier. You have time on your side in most cases, whereas building an audience is a desperate race against time. Building altcoin positions can be done with spare cash or with cash specifically set aside for altcoin investments. Creating passive income is like creating your own legal money printer.
This is my preferred approach. This way, I can continuously build positions without allocating or risking my own funds. Yes, this is, in essence, my own money, but I have not had to work or exchange my time to earn it. This also makes it much easier to stomach when a particular pick does not perform as expected.
Why Market Dips Are Actually The Best Opportunities In Crypto
An unrecognized altcoin is very likely to dump hard during a market correction, making for a great accumulation zone. If you are truly convinced about a certain project, you will jump at the opportunity to increase your holdings at a discount. One thing to remember about this approach is that it typically takes 2 to 5 years to see significant gains.
It can sometimes happen much faster, but investors need to be prepared to endure this timeframe. It is really good to experience a 400% or 500% return, but in all honesty, these returns will not generate any meaningful wealth. You have to be committed to a long-term approach with continuous contributions if you wish to experience significant returns.
What People On Hive Are Doing Differently (And Why It Works)
This approach seems to be quite prevalent in the Hive community and on Leofinance. The community is motivated to continually increase its number of accounts and build up its voting weight. There is an expectation, though nobody necessarily knows when that growth will come. There is a strong conviction that the ecosystem will be recognized and valued by the market at some point. I firmly believe that many community members will create significant wealth through Hive.
Whether this takes three years or even five, I am not sure. I do, however, have a strong conviction that there will be significant growth and value creation within the Hive ecosystem over the next decade. Some are deterred by longer timeframes, which is why they often don’t experience significant gains. Even in the crypto space, time is the ingredient that separates decent gains from amazing gains.
Why Success In Crypto Is Really Just A Numbers Game
Whether you look to grow your own community on YouTube or some other platform, it is still all about the numbers. You will not get very far, even with a few thousand followers. The multiplication factor is too limited. In the same way, accumulating a coin that goes on to perform 500% will also miss the bar. Once again, the multiplication factor is too small.
However, finding a coin before recognition will provide the multiplication factor needed to achieve significant returns. This approach will, however, require diligent research and time in the trenches. A quote by Dale Carnegie comes to mind.
The person who goes farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.
Conclusion
This is very true, especially in the crypto world. Remaining with the leaders is good for portfolio stability and growth, but significant growth will require taking calculated risks and will be experienced only by those prepared to do so. Big wins are usually backed by extensive research. If you want to profit in crypto, you have to put in the time and effort!
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