Bitcoin was introduced in 2008-09 during the midst of the 2008 financial crisis, back then it was a revolutionary technology and it didn`t have the necessary infrastructure or awareness to capture the market all of a sudden.
However over a decade later, we are in 2020 going through yet another financial crisis, perhaps the worst modern world has seen and bitcoin is going through its litmus test. So far bitcoin has shown that it is worthy to be termed as the “digital gold” because it can hold its value during the financial crisis just as well as gold.
However bitcoin is different from gold because its value is far more volatile than gold. Bitcoin is characterized by extreme day to day price volatility and this volatility isn`t necessarily bad but we`ll come to this point later. Let`s cut to the chase right away, you came to this page looking for ways to become a bitcoin millionaire, that`s what you searched for and this is what you are here for right.
Yes, it is possible to become a millionaire. Right so now that you have got rid of the doubt form your mind, let`s talk about the strategy. Yes there are many block chain millionaires out there, most of them were those lucky and shrewd investors who took advantage of the 2017 boom and cashed out at the right time. 2017 can be called as a once in a life time fluke that worked for many, it can also be called as coming of the age for bitcoin.
The year 2017 wasn`t at all negative for bitcoin, it ended the mass awareness phase for bitcoin and pushed the cryptocurrency towards mass adoption phase and the bitcoin crash in 2018 in many ways made bitcoin more stable. Will a boom like that one ever happen again? Probably not, that was a once in a generation boom. Alright so how will you become a millionaire then? By following a proper strategy!
I`ll be clear. There are two ways through which you can become a bitcoin millionaire.
- Mining bitcoins
- Trading bitcoins
I`ll be honest, unless you are an institutional investor, mining bitcoins is out of the question and if you are already rich enough to afford proper mining equipment to mine bitcoins with efficiency then you must already be a millionaire because nowadays it simply isn`t possible to set up a mining rig at home and expect it to mine coins. The competition has increased so much that there are mining farms all over the world competing with each other and the thing about the blockchain system is that the more competition there is the more difficult it gets to mine bitcoins.
So mining is a no go, however you can try your luck with cloud mining but cloud mining is still in its infancy and no one can guarantee you that you`ll become a millionaire through it. The risk reward relationship for cloud mining just isn`t feasible enough to become a millionaire. So this leaves us with one option.
It is possible to become a bitcoin millionaire through trading but you will need to get your strategy in order. Firstly you will need to determine your risk appetite. How much risk are you willing to take? This is very important as this will determine the time that you are going to give to our strategy. If you go for a high risk approach then you will need to develop a very high risk and high return strategy.
A very high risk strategy is not advisable, although if done right it can make you a millionaire in a relatively short amount of time but you also risk losing a lot of your capital if it goes wrong. Individuals, who have got pro level information about the market and understanding of bitcoin and how its value fluctuates, are perhaps the only ones who can undertake a high risk strategy, as they have got sufficient knowledge to pull it off. In addition to this, you may need to take help of AI programs as well because your strategy will need to be based on both qualitative and quantitative input. Remember with a high risk strategy your margin of error will be so low that you cannot afford to go wrong.
A better way would be to go for a low risk strategy. This strategy will take a longer time, yes but it will have a greater probability of making you a millionaire. The time, will depend on how much capital you are willing to invest. The more capital you have the faster it will be.
For this strategy too you will need to know how the market works and how the bitcoin value changes but the risk profile will be lower. You won`t be making high stakes trades every day no. Once again it will be wise to use a program that uses AI to help you with your trading. The key is going to understand how the bitcoin price moves and when to buy and sell.
If you are not in any hurry to become a millionaire then perhaps you can set yourself the target of next ten years. Let`s break it down now.
1 bitcoin at present costs almost $9400. In order to have a million dollars in bitcoins you will need to have at least 10.6 bitcoins. There is no need to round it off as bitcoins are also available in fractions. So you need 10.6 bitcoins in order to become a bitcoin millionaire. Now if you divide this over the next ten years then each year you will need to earn approximately 1.6 bitcoins through your trading.
This should be your annual target if you have set yourself a target of next ten years. If we simplify it further, 1.6 bitcoins per year mean that you will need to earn $15000 approximately through your trading annually and if we further break it down then per month you will need to earn approximately $1250.
This graph shows the value of bitcoins on 15 June 2020. You can see that at 12 pm the value of bitcoins fell below $9000 for the day. $8971 to be exact and at 6 am the value of bitcoins is at $9392. This shows a rise in price in just 6 hours by $421.
A shrewd bitcoin trader could have made a sizeable amount of money by taking advantage of this volatility. The thing to remember is that these volatility cycles are very common for bitcoin and with the right amount of knowledge an investor can make safe bets and gain on trades. If you look at the monthly target of $1250 then it looks quite achievable if you see the volatility.
In light of this discussion, it can be concluded that it is absolutely possible to become a bitcoin millionaire if you follow the right strategy. For obvious reasons it isn`t possible to explain the trading strategy here, for this you will need to enroll in a bitcoin trading course but once you have got your trading strategy figured out, it is very possible to become a bitcoin millionaire.