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Bitcoin, Ethereum, Litecoin, Ripple, Dogecoin, Binance Coin – these are just some of the countless in-demand cryptocurrencies you could invest in today. While the initial crypto craze that started with the first big Bitcoin Bubble in 2017 has largely settled down, crypto has never been as popular as it is right now.
In all likelihood, you’ve probably experienced this popularity yourself – there isn’t a social media platform that isn’t filled with “crypto investors” promising to help you get rich quickly with Bitcoin.
Though everyone knows that heeding financial advice from random internet strangers is rarely your best course of action, this does beg the question – is it still possible to build wealth with crypto? Let’s find out.
Are there actually any crypto millionaires and billionaires?
By all accounts, it seems as though every other person on platforms like Instagram, YouTube, and TikTok is a multi-millionaire crypto influencer who can help you achieve your wildest crypto dreams.
If you take a closer look, or worse yet, if you take some of these influencers up on their “make-your-dreams-come-true” offer, you’ll need a cryptocurrency lawyer much sooner than you may think.
So, if these influencers aren’t as successful as they make it sound, and if cryptocurrency investing is as risky as everyone says it is, are there really any real self-made cryptocurrency investors?
The short answer is yes – but not nearly as many as you may think.
Even though there are over 425 million cryptocurrency users globally, with over half the Gen Z population investing in crypto, over 45% claim their investments haven’t been as lucrative as they’d hoped.
Only 1% of all crypto users have reached the $1 million mark. From that, only 182 investors have made more than $100 million with their cryptocurrency investments, and only 22 have made over $1 billion.
So, while there certainly are crypto millionaires and billionaires, their numbers aren’t as strong as social media would lead you to believe.
Top ways to build wealth with crypto
Although becoming a millionaire with cryptocurrency isn’t quite as easy as you might’ve hoped, you can still build wealth with it. You just need to find a cryptocurrency that can make it worth your while and choose the best approach to earning an income through crypto that suits your preferences.
Due to BTC dominance, Bitcoin is still one of the safest cryptocurrencies to use, and the following are some of the top ways you can earn with it.
Investing is the simplest, most straightforward way of making crypto more profitable. It’s a long-term strategy that doesn’t guarantee success but can pay off nicely if you know when to buy and when to sell.
It simply requires you to buy a cryptocurrency coin of your choice (preferably at a lower price) and then hold it and sell it when it increases in value.
Trading is another great option, but one that requires less amount of time than investing to become profitable. Trading is all about taking advantage of short-time fluctuations in the value of different cryptocurrencies. Considering how volatile most cryptos are, it can generate quick profits without much fuss.
The only downside is that trading requires a lot of skill and expertise.
Yield-farming is essentially lending crypto to others. Becoming a cryptocurrency lender is largely similar to becoming a traditional Fiat currency lender. You must choose a reliable lending platform, deposit your crypto, and start lending to others.
Multiple cryptocurrency owners commonly connect their wallets to create a larger lending pool. In the process, you can collect interest on the amount you’ve added to the pool and earn a nice passive income.
Of course, to be able to lend crypto, you first need to invest quite a bit in it.
Mining cryptocurrency is how it all started. In a nutshell, it involves committing your computer resources to verifying transactions on the blockchain by solving complex math problems. You can be awarded a crypto coin if your computer successfully solves a problem.
The problem here is that you can’t be very successful at crypto mining without a powerful machine, especially considering how many mining operations there are across the world. So, while it is possible to collect crypto coins through mining, it isn’t very probable.
Though not usually very profitable, it is possible to start to build wealth with crypto through airdrops. In a nutshell, a crypto airdrop is a marketing strategy. It involves new platforms sending a small amount of new cryptocurrency to a user’s wallet for free in exchange for completing a certain task – such as joining a new crypto community, sharing information about the crypto project on social media, etc.
While it’s not a reliable strategy, it could be profitable, especially if the new currency takes off.
Building wealth with cryptocurrency is challenging but not impossible. While there aren’t as many cryptocurrency millionaires as you might’ve thought, and while crypto success rarely happens overnight, it’s still possible to make it big in the crypto world by investing smartly and adopting well-thought-out strategies.