Step 1: A large profit cannot be achieved without a substantial investment.
If I said to you that you could start investing in cryptocurrency with just one thousand dollars and become wealthy, I would be lying. The truth is that with such a small amount of money, your probability of achieving success is almost non-existent. Even though it is true that some people have managed to take a thousand dollars and turn it into a significant amount of money, it is extremely unlikely and there is no guarantee that you would be able to replicate their success.
Let’s do some calculations. For instance, if I am aiming to make one million dollars with cryptocurrencies:
If I have $10,000, I will need a multiple of 100x to be a millionaire. On the other hand, if I invest $50,000, I only need a 20x multiple, which seems more achievable. The bigger your investments, the easier it is for you to attain higher numbers. It is easy to comprehend, yet keep in mind that it is much simpler to make an additional 10x someplace else than to wait for an additional 20x on your money.
Step 2: Select an area of cryptocurrency that you wish to concentrate on
As the crypto industry develops, the potential for gain increases. Thus, it is always beneficial to concentrate on innovation with groundbreaking ideas and the potential for future usage. Nonetheless, the complication for many is that they acquire 20 projects without taking the time to investigate them thoroughly. Therefore, it would be more advantageous to select only one or two projects and spend all of your effort and concentration getting a deep understanding of them.
Step 3: Devise a plan which is certain to succeed
A lot of people in the cryptocurrency world think that they can just randomly pick a coin, be told when to purchase it from Twitter, and then when to sell it, without having a detailed plan. But if the goal is to make a good profit, it is essential to have a sound strategy in place to make sure you’re making the right decisions when entering and exiting the market. So, what should this plan look like?
You should determine what field you are going to concentrate on. (Will you be dealing with L1s, L2s, non-fungible tokens from an exchange or something different?)
It is necessary to conduct a thorough investigation to locate three to eight coins that you have confidence in, and then develop a method of staying informed about them.
Creating a strategy for entering the market is critical. What will be the standards for making an investment? Will it be based on fundamental or technical analysis? What charting signals will be taken into consideration when making the selection?
Step 4: It is essential to have an exit plan
It is essential to identify when you are planning to sell. Are you going to dollar cost average over time? Or maybe you intend to sell half when the value doubles. You need an approach for this. The exit strategy is the most disregarded element of crypto. Everyone is always inquiring about when to buy, however, no one wants to know when to sell. That is the issue, as during a bull market, crypto values are going up, everyone is buying, and the cost keeps increasing. So we all have a gain, but it is only on paper, implying that we have not realized any benefit since we have not sold anything.
Consequently, the challenge is that when the bear market materializes, most people never cash out since the digital asset they acquired drops by 50% – 90%. Therefore, the gains they had are now lost since they never liquidated them, and this is what we desperately want to avert.
Ultimately, it is your decision what goals you establish for yourself, and of course, you can acquire income through airdrops or DeFi. However, if we are referring to considerable wealth in crypto, you shouldn’t expect a miracle to occur and depend on fortune. Your primary assignment is to construct a thoroughly considered approach.