Can crypto make you rich? (2024)

Report this article

BitOasis

The MENA regions first, and largest exchange platform pioneering the cryptocurrency ecosystem.

Published Feb 3, 2023

+ Follow

In 2009, Norwegian student Kristoffer Koch was writing his master’s thesis on encryption and read Satoshi Nakamoto’s white paper on Bitcoin, which made him see the potentials this new technology has, leading him to invest $26.60 to buy 5,000 Bitcoins. In 2013, Koch cashed out 1,000 Bitcoins and bought an apartment, and the other 4,000 Bitcoins he had, whether he still holds them or not, are now worth tens of millions of dollars.

Stories like this have for years inspired people to invest in crypto, hoping to get rich easily by being present early in the game, especially when it comes to new cryptocurrencies that they believe will explode in value the same way Bitcoin did. But can crypto make you rich for real?

The big shift

The answer to this question is a bit complicated. But if we rephrase it as “Can crypto make you rich the same way early adopters got really rich?”, then the answer would be “probably not”. For those early investors, the amounts they’ve put got doubled by 20, 30, and 100 times. For some early adopters, the value of their investment doubled even by 1,000 or 10,000 times at the time they cashed out.

The main change that happened since the time early crypto millionaires made their initial investments is the economical status shift for cryptocurrencies. When these investments were made, Bitcoin was frowned upon as a scam, or an imaginary idea that can fail and disappear without much effect on the global economy.

Today it’s different, with many major financial and tech companies, and even governments, being involved in the cryptocurrency economy. And while the early millionaires made their profits from the shift of cryptocurrencies from being a niche choice to popular investment assets, those who entered the market after this shift still can make good profits but are unlikely to add zeros to the value of their investment.

Still, cryptocurrencies represent an attractive investment opportunity for those willing to take a risk in exchange for high potential profits, due to their high volatility compared to other conventional assets such as stocks, forex, and real estate.

Recommended next reads

Bitcoin’s Halving Frenzy: The Countdown to Crypto Gold Norm Bond 5 months ago

Confused about Bitcoin? Volkan Halilov 6 years ago

The Best Articles to Learn about Bitcoin, Ethereum… Nat Eliason 6 years ago

So… how to get rich?

You can absolutely make money through crypto, just as you would trading any other type of asset. But with the extra volatility, there is a higher risk and higher potential profits. Generally speaking, there are two ways to financially benefit from crypto:

Investment: There are many styles of crypto trading, mostly lying under three main categories. First is long-term investments, where you buy the assets you believe would have greater value in the far future – 3 to 5 years – and keep them until the value you hope for is achieved. There’s also swing trading, where you buy an asset and wait for a couple of days or weeks before selling it back to make some profit. And finally, there’s scalping or daily trading. In this case, you’re not actually betting on the increase in value, but on the natural price movements that happen every day to make minor but continuous profits.
Utility: When cryptocurrencies were first created, the goal wasn’t to provide an investment asset, but an alternative financial system that benefits from the convenience of the internet and the latest technologies. Cryptocurrencies and blockchain technology in general can help save a lot of money. That’s especially true if you make a lot of cross-border transactions, whether it’s for your business or for personal purposes. Making international transfers using blockchain technology can save you a lot of time and money. Also, hundreds of decentralized apps and blockchains perform the same functions the software you pay for does, like cloud services and supply chain tracking and record management, and usually for much less than what you pay for centralized services.

Unfortunately, the crypto industry has attracted a lot of fraudsters and scammers. These are the ones that promise you to get crazy rich if you invest in one crypto project or another. One common way they do that is by creating new cryptocurrency projects and encouraging people to buy the coins – from them – before stopping their support of the project and leaving investors with assets that have zero value.

Here at BitOasis, we always run any coins we’re willing to list through a rigorous review process to make sure it complies with our criteria. And even after listing the coins, we run a regular review to make sure they’re still valuable and safe projects. But this is not the case for many other exchanges, and it’s essential to do your own research before investing in any cryptocurrency and to take all the necessary safety measures to protect yourself from any unbearable risks, starting with investing only the funds you can afford to lose.

Help improve contributions

Mark contributions as unhelpful if you find them irrelevant or not valuable to the article. This feedback is private to you and won’t be shared publicly.

Contribution hidden for you

This feedback is never shared publicly, we’ll use it to show better contributions to everyone.

BitOasis Blog

12,224 followers

+ Subscribe

Comment

1 Comment

generationX weeenie

IT Specialist at generationxween

5mo

Report this comment

it may take time for policymakers to establish clear, consistent guidelines in making money ,depends on what price you buy and sell an asset for. If you sell when its price is higher than you bought it for, you will make money.If you sell for a lower price than you bought it for, you will lose money.This are the basics lesson leant when I started my investment plan with (Generationxweenie@gmail.com) Their unparalleled expertise, dedication, and unwavering commitment to helping people in dire situations like mine are beyond commendable.i just bought my wife the 2023 Lamborghini with the ROI, the more you study the more convinced you are that it will go up in the future.

Like Reply

1Reaction

To view or add a comment, sign in

Insights from the community

Financial Technology What are the best ways to manage cryptocurrency volatility and uncertainty?
Blockchain How does the Bitcoin halving affect the network's incentives and dynamics?
Blockchain What are the benefits and challenges of implementing proof of burn in a public blockchain?
Blockchain How do you communicate and collaborate with other Bitcoin stakeholders during forks and updates?
Mechanics How can you evaluate the credibility of a cryptocurrency investment?
Financial Technology What are the key factors to evaluate a new cryptocurrency project?
Technical Analysis What are the most effective ways to use TA data for cryptocurrency trading?
Blockchain What is the Proof of Work consensus algorithm, and how does it work?
Blockchain How can blockchain consensus algorithms achieve finality?
Financial Technology How do you teach blockchain and cryptocurrency solutions to customers and stakeholders?

Others also viewed

The Best Articles to Learn about Bitcoin, Ethereum, and Cryptocurrency Nat Eliason 6y
Adit: A Crypto Pioneer's Journey from Bitcoin's Birth to Building Bitwyre Bitwyre 7mo
TOP TEN BITCOIN BILLIONAIRES – BEST CRYPTOCURRENCY TO INVEST IN Richard Baker 4y
A first journey to Cryptocurrency investments Sudesh Tirumalasetty 6y
Mid Week Crypto News Update Eugene Tay 5y
Weekly Update – Week 96 Philippe Jetté 4y
What is Cryptocurrency? A Complete Guide for 2023 and Beyond Dhiman Bhattacharyya 1y
Why is Bitcoin Going Down in January 2022? Michael Spencer 2y
Bitcoin is (once again) stirring up cryptoverse excitement Ron Evans 6mo
The 31 People You Meet In Crypto Benjamin Joffe 6y

Explore topics

Sales
Marketing
Business Administration
HR Management
Content Management
Engineering
Soft Skills
See All

FAQs

Can crypto make you rich? ›

The truth is that you can get rich by investing in crypto, but making money in crypto is the same as making money with any type of investment. To become rich, you have to do your research, work with a financial advisor, follow specific markets and make trades at the right time.

View Details ›

Can you be a millionaire from crypto? ›

Bitcoin has made many millionaires already, and you could be one, too. Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires. In fact, data from the blockchain analytics platform Glassnode shows roughly 115,000 wallet addresses with a balance of more than $1 million today.

Is it easy to get rich in crypto? ›

Well, this all depends on the amount of capital that an investor has access to. If the day trader is entering positions with a small amount of money, then getting rich with cryptocurrency will be challenging. The only way around this barrier is to day trade crypto with leverage.

Discover More ›

Can crypto make you a lot of money? ›

It is possible to make $100 per day, but there is no guarantee or specific technique you can use to ensure it happens. Cryptocurrency trading, lending, staking, and investing all come with significant risks because it is such a volatile and unpredictable asset.

Discover More ›

Is crypto a good investment? ›

Crypto is considered a high-risk asset class. Limiting allocation helps manage overall volatility and risk. Those new to crypto investing may start with 1% to 2% as an introduction. Only risk capital you can afford to lose should be exposed to crypto price swings.

Know More ›

How many people actually get rich from crypto? ›

But some seem to have found more success with crypto, and now have holdings worth millions or even billions of U.S. dollars, according to Henley & Partners. The firm's report on Tuesday says says 88,200 people have crypto assets worth at least $1 million — less than 1% of overall crypto users.

Find Out More ›

Can Bitcoin be worth 1 million? ›

Bitcoin's Price History

Notably, Cathie Wood, CEO of Ark Invest, predicted that bitcoin could reach an astounding $1.48 million by 2030. Obviously, the world's oldest cryptocurrency has come a long way since its first recorded price of less than a cent.

	Annual Salary	Monthly Pay
Top Earners	$71,500	$5,958
75th Percentile	$66,000	$5,500
Average	$48,666	$4,055
25th Percentile	$20,000	$1,666

How much will I get if I put $1 dollar in Bitcoin? ›

1 USD equals 0.000015 BTC. The current value of 1 United States Dollar is +1.04% against the exchange rate to BTC in the last 24 hours. The current Bitcoin market cap is $1.36T. Create a free Kraken account to instantly convert USD to BTC today.