Recently, someone asked me how people are making it big with crypto and what they do differently to achieve their success.
Here are some insights into what successful crypto investors do and how you can replicate their success.
What successful crypto investors do right
1. Have a long-term perspective
Most crypto success stories you hear about are long-term holders who held onto their crypto assets even when it didn’t make sense to do so.
For example, in 2013, the Winklevoss twins used a portion of their settlement funds from a lawsuit against Mark Zuckerberg to buy $11 million worth of Bitcoin at $120 per coin.
They’re speculated to have cashed out in 2017 and used a part of the proceeds to open the Gemini exchange.
That’s about 5 years of holding onto their Bitcoin through the good and bad years until it went mainstream in 2017.
There have been many similar stories of long-time Bitcoin investors or HODLers who have made tens and hundreds of millions or even billions of dollars from relatively small investments held over an extended period.
Therefore, if you want to make it big in crypto, you need to learn to buy, HODL, and wait patiently.
And as CZ rightly puts it:
2. They made sizeable investments
Most, if not all of the successful crypto investors you hear about in the news invested sizable amounts, to begin with. From a few thousand to millions of dollars.
So, if you’re starting with $50 or $100, you can’t expect to make as much money as someone who invests $10,000 or $1 million.
For example, a 100x on your $50 will give you $5,000. But a 100x on $50,000 is $5 million.
Clearly, the bigger the amount you invest, the greater your potential return if your bet plays out right.
3. They invested in solid projects with a high risk/reward ratio after doing thorough research.
Smart and successful crypto investors do not blindly dump their hard-earned money on just any trending coin or token.
They take the time to do their research and fundamental analysis of a project they’re interested in to ensure it has good potential.
Look for solid projects with a high potential for growth, and a good risk/reward ratio and invest as much as you can, then wait.
It’s that simple.
4. They invested in some meme coins early enough and got lucky
There’s a story of a guy who invested $8,000 in Shiba Inu in August 2020 which turned into $5.7 billion after just one year in October 2021.
There are many more who have invested some big or small amount in a meme coin that became mainstream and made significant gains.
However, these success stories are very difficult to consistently replicate as it’s almost impossible to tell which new meme coin will gain traction.
And as you can see, the guy dumped $8,000 into a shitcoin just 3 weeks into its launch.
If you don’t have some insider info or a lot of money to throw around, it’s not possible to make such bets and reap such rewards.
5. They took profit when the price reached their target
Successful crypto investors know that the only profit you make is the one you take.
The crypto market is extremely volatile and a coin can make you rich overnight and poor again the next day.
So, when you reach your profit target, realise some of that profit into stablecoins and lend it out to generate interest.
Or consider cashing out and investing in a crypto or traditional business that can generate some regular income which you can use to further grow your portfolio or DCA into your favourite coins.
What you choose to do with your profits is left to you. The point is to secure some profits and take them off the market.
For example, the Winklevoss twins cashed out their Bitcoin and invested it in Gemini and other ventures which further grow their wealth.
That’s what smart investors do.
6. They developed a system that can help them predictably replicate their success.
Successful crypto investors have a strategy for everything, from identifying new tokens to invest in, to taking profits, and everything in between.
And you should too because investing without a strategy is the same thing as gambling.
Even if you want to invest in shitcoins, have a shitcoins investment strategy.
Some good questions you can ask yourself in this regard can include:
- Where do I find the information I want?
- What token I’m I buying?
- Why I’m I buying it?
- When I’m buying it?
- How I’m I buying?
- When would I sell?
- Why I’m I selling?
- How will I sell?
Answering these questions and more will help you define your strategy and invest with clarity.
This way, you can tell what works and what doesn’t so that you can continue to refine and optimise or focus for better results in the future.
Conclusion
There’s no single formula for success in crypto investing, but there’re common traits that most successful investors share, such as:
- having a long-term perspective,
- making sizable investments,
- investing in solid projects after thorough research, and
- having a system for replicating success.
Additionally, taking profits when the price reaches a target and developing a clear strategy are essential elements for success in the crypto market.
And while investing in crypto can be risky, it can also be highly rewarding for those who take a calculated approach and invest wisely.
Ultimately, the key to success in crypto investing is to stay informed, be patient, and continuously adapt your strategy to navigate the ever-evolving market.
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