27 October 2021
Is it possible for a commoner to be a part of the Crypto millionaires club? Yes, it is!! Even though the Crypto market is volatile, we cannot ignore the fact that it is lucrative at the same time. Investing in Cryptocurrency has potentials and risks associated. You must have come across many stories that talk about individuals becoming Crypto millionaires or about the ones who lost their Cryptos.
When you are considering turning your Cryptocurrency into 6 figures, you cannot expect returns in a day or two. In every investment approach, you need to have a strategy, goal plan, and risk management. No investment strategy is complete without understanding the basic principles and taking all necessary steps. Furthermore, you need to look out and not rush into FOMO, and other strategic traps such as by the Crypto whales. Your goal to reach 6 figures Cryptocurrency should be a safe and effective journey while following few guidelines that can help get you there.
In this blog, we are going to discuss 5 Tips To Make Six-Figures In Cryptocurrency:
1. Investment Plan
The first strategy when investing in Cryptocurrency is to have a plan. It involves thorough research and analysis, goal-plan, entry strategy, exit strategy, and risk management. Exclusive strategies involving the Crypto bull and bear market to mitigate the risks and reap benefits.
2. Cryptocurrency Investment
Money won’t grow in your bank account. Thus, every other investment or finance book talks about how crucial is investing. You need to go out there and see what investment approach works the best for you. It is important to pull out some income from your salary and invest. Even if it’s a small investment amount, eventually, it will grow large through the dollar-cost average. A Crypto portfolio works best in any situation and is considered a safe investment strategy.
3. Look out for the taxes.
A short-term trader pays comparatively heavy taxes since they buy and sell cryptos often. This could lead to unexpected tax expenses; thus, you must strategically figure out methods to save when the IRS hits. Whereas, for long-term holders (even if it’s for a year), the taxes levied are comparatively lesser.
Also Read, Meet The 10 Crypto Millionaires In The World
You should never invest in something that you don’t understand. Research helps you to study, understand and follow through with the Crypto market. Since the Crypto market fluctuates more than any financial market, it is crucial to diligently comprehend the cryptocurrency, its legitimacy, team, use-cases, features, functions, history, price chart, demand and supply, market cycle, competing Cryptos, news, and trends, updates, future of the Crypto, and so forth.
Patience is a combined approach to all the tips stated above. A finely tuned mindset and timing can do all the wonders throughout the process. Rushing into decisions of going in or out will either make you lose or be out when you could have yielded more. For instance, many did not believe in Bitcoin until it hit $1 in February 2011, which recently surged to $48, 000 in February 2021.
As a Crypto investor, especially when the market is so volatile and unpredictable, you must always stay updated with the Crypto market and follow the Crypto community. Pick a few top Crypto investors and learn from their success and mistakes.
And last but not least is to follow the golden investment key rule, “Invest what you can afford to lose.”
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.