beginingBlockchainAnalyzesThe crypto recipe for success

    The crypto recipe for success

    The cryptocurrency market is what I believe to be the most exciting thing happening on the planet right now. Not only does it have the potential to change the world as we know it, but it also has the potential to change your life financially forever. There is a stereotype that it is incredibly easy to get rich by investing in cryptocurrency, and while some of that may be true. I would say that this market is probably more stressful than other markets, but it is also much easier to lose all the profits you have made. Only the strong and knowledgeable survive. Too many people end up buying high during peak FOMO and then selling much lower during peak fear. Only to be sorry when the prices later go up.

    I am often asked how one can succeed in this industry and how one can make life changing financial gains. Although this is not financial advice, but this is my opinion and the thought process that drives my crypto investing. The first thing you need to know how to do is do your own research. For a moment, just think about all the time and effort it takes to wake up every day and go to work, and then have even a little extra cash that you can afford to invest. Most of us do not want to go to work, but it is something that is necessary to survive. You have worked extremely hard to invest that extra money and you should work just as hard or take just as much care while investing it. So while investing in meme coins of the moment like Shiba Inu, Floki or Dogecoin can potentially bring you very quick profits. It can evaporate just as quickly.  


    This is why I prefer to build an extremely strong foundation with my crypto investing. The foundation of my foundation consists of a vast majority of bitcoins and also ethereum. My thought process is this; The crypto market is already risky enough and extremely volatile, especially compared to other asset markets, so betting on safer crypto plays is perfectly fine with me.  

    The main complaint that people often say when they are advised to invest heavily in Bitcoin or Ethereum is that the prices of the coins are already too expensive. That they missed their chance with these coins and have much better opportunities to make money with other coins. My response to this is that people think too narrowly. Although it may not seem like it, those of you reading this article are still very, very early in crypto. Think about all the people you know, and now think about how many of them are involved in cryptocurrency. I would bet that for most people that percentage is shockingly low. That is changing.

    I've said it many times over the last year, but Covid changed everything and accelerated the adoption and public image of Bitcoin and cryptocurrency by at least ten years in my opinion. Probably a lot more. Let's do a quick recap of just some of the things that have happened with Bitcoin in the last 2 years. Several companies, including one of the world's largest, Tesla, have put Bitcoin on their balance sheets. It became legal tender in El Salvador. Countless ETFs have been approved worldwide. Chinese mining FUD is over. The adoption of Bitcoin's layer 2, Lightning, has increased much faster than expected, which would allow Bitcoin to be used more easily for payments. Hedge funds, banks and credit card companies have accepted Bitcoin. The list goes on and on, but one thing's for sure, and that's that they won't stop happening.

    Looking at the current price of bitcoin ($44k) and ethereum ($3.1k), it would be foolish to assume that the prices will stay here forever. Especially with the growing adoption of bitcoin and ethereum. We're not even mentioning what could happen after Ethereum 2.0 features are fully implemented.

    So what is the future price potential of bitcoin and ethereum? It all depends on what your time horizon is.

    In the short term of 1-3 years, it is quite possible that Bitcoin and Ethereum will appreciate at least 10 times. That would put Bitcoin at nearly $500,000 and Ethereum at around $30,000. But this is only in the short term. If these above situations continue to happen and crypto continues to increase its adoption, the sky is the limit. As crazy as it may seem to people right now, by the end of this decade I wouldn't be surprised to see the price of Bitcoin surpass $1 million per coin and Ethereum reach $75k+. Once again, this is only until the end of the decade, and the numbers get crazier the further you go. 

    I don't think any of us would complain about those kind of profits and it's definitely still possible to make a life-changing fortune investing in bitcoin and ethereum. Then also add to your ability to accumulate by giving away or staking bitcoins and ethereum, and this will help you progress much faster towards your goals.

    So yes, it is true that other coins can go up faster than ethereum or bitcoin, but they are also likely to go down much faster too. It's not the profits you make, it's the profits you keep that matter. My advice to myself and others just entering the market is to build a good position in Bitcoin and ETH before focusing on anything else. That's really all you need to do to be successful. Once you finally reach a point in your accumulation of these two coins that you are happy with, then you are finally ready to branch out into other coins if you wish. After years of hoarding, I finally got to this point myself, but I still prefer to buy more BTC and ETH instead of buying other coins. Focus on building your base first before trying to build your tower or skyscraper.

    What about you? What was your recipe for crypto success?

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