Everyone is looking for a way to make millions of dollars. That’s a one followed by six zeroes.
First, you can invest in the stock market. But if you’ve been following this market, you can see they are having their own issues because of the coronavirus as well as the oil crisis. These two outside factors have caused worldwide issues.
Second, you could go play the lottery. You know the odds winning here is slim to none unless you know the exact second when the next solar eclipse is going to happen, which happens very infrequently.
For instance, the odds of winning the Powerball lottery are 1 in 292 million.
Third, advertisements talk about the next gold run that is going to happen any day now and that you don’t want to miss out. This metals market does have its day from time to time. But do you really want to have hundreds of pounds of gold bricks lying around your house? Probably not. The logistics of maintaining this metal is not the easiest to make.
So now that leaves us with this currency, investment, fake money, or whatever you want to call it. The money you can’t see, touch, or taste.
Bitcoin is the first and one of the thousands of cryptocurrencies that entered our vocabulary after the last financial crisis of 2008. The whole idea was to have a decentralized currency that was not affected by governments and the banking system, and so far this has proven true.
A person or group of people known as Satoshi Nakamoto created Bitcoin. Satoshi has never revealed him or herself, and this person could be a group of people using this cover name.
On May 22, 2010, Laszlo Hanyecz, a programmer bought a pizza for 10,000 Bitcoin, which was worth $30 at the time. He wanted to prove this could be used as a form of payment.
Little did he know, the price of Bitcoin continued to rise and fall over the years. In the last cryptocurrency bull run, Bitcoin reached a high of $19,783.21.
After that Bitcoin went through a huge fall and continues to trade sideways, with prices moving up and down since then.
Like many people, I couldn’t understand Bitcoin and cryptocurrencies that you couldn’t see, taste or touch. To me, it didn’t make sense.
I was far from a techie and had a tough time grasping this.
Also, I had invested for years in stocks and real estate, so I had a hard time understanding this investment.
After much research, I finally grasped the true meaning of this currency when someone sent me a video that really broke down what Bitcoin was. See this short video to get a good understanding of what is Bitcoin.
Finally, I bought my first Bitcoin just before the market high. At this point, I was just learning about what this market is. It was very different than the stock and real estate market, but a lot of the principles were the same. Buy low, sell high.
So I began my journey to make millions in Bitcoin.
I started buying Bitcoin but then added a few other cryptocurrencies.
At the time, Bitcoin had hit its peak, and then slowly the price was coming down. I really didn’t want to buy any more Bitcoin when it was over $10,000. I did buy about 1 to 2% of one Bitcoin before I started to think I would need a lot of money to buy even one Bitcoin, which I didn’t have. Then to reach a million, that might take years, and I didn’t want to wait that long. I could be receiving social security by then or maybe even later than that. So I began my journey buying other cryptocurrencies or altcoins to reach my millions.
Altcoins are short for alternative currencies. These are other cryptocurrencies that don’t have the name Bitcoin, the original cryptocurrency.
Some altcoins had similar uses to Bitcoin, while others had different purposes. A few cryptocurrencies were created as a joke with no real value. Many altcoins don’t have any real value as many have failed for various reasons.
This market is unique. In many cases, as Bitcoin rises, other cryptocurrencies rise a well. When Bitcoin goes down, many cryptocurrencies go down as well. This system does not happen with all cryptocurrencies, but it does with many.
All altcoins are priced less than Bitcoin. If this remains true in the future is anyone’s guess. Some believe another cryptocurrency will overtake Bitcoin and become the dominant cryptocurrency, but that hasn’t happened yet. Maybe it will one day.
As for the other cryptocurrencies, I have bought cryptocurrencies worth less than Bitcoin, such as Litecoin and Ethereum, which are all over $40 as of this writing.
For me to reach a million, I would need to invest a lot of money even with these altcoins to reach a million dollars.
So I started researching other cryptocurrencies that didn’t cost as much. Maybe I could reach a million a different way.
I started buying Tron (TRX), Cardano (ADA), Ripple (XRP), and Stellar (XLM). These are all projects that are in the top 20 on CoinMarket Cap, which lists all of the cryptocurrencies on the market. These cryptocurrencies have floated around 1 to 38 cents over the past three years.
So I was looking for an even faster way to reach my millions by spending less of my own money.
Since I don’t consider myself a cryptocurrency expert who was knowledgeable on the exact purpose and makeup for many cryptocurrencies, I took my advice from a few cryptocurrency Youtubers I came to respect for their no-nonsense approach.
Many of these cryptocurrencies that were recommended are under a penny or one cent. So yes, this sounds too much like a penny stock.
If you have invested before, you know penny stocks are an even harder way to predict the movement on these investments that have cost people a lot of money as the real experts make off with their gains.
I tried to trade penny stocks before, and it was a costly experience that I vowed I wouldn’t try again. But with cryptocurrencies, I could see this market was a little different and didn’t move exactly like penny stocks. Many of these penny stock like cryptocurrencies still moved whenever Bitcoin moved.
This may sound a lot like speculating and it probably is.
This is how Investopedia defines speculate:
In the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. With speculation, the risk of loss is more than offset by the possibility of a substantial gain or another recompense.
An investor who purchases a speculative investment is likely focused on price fluctuations. While the risk associated with the investment is high, the investor is typically more concerned about generating a profit based on market value changes for that investment than on long-term investing.
Because there is some hope involved and no true fact that the cryptocurrency will increase, I try not to invest too much of my money in cryptocurrencies in general.
Forbes published a story last year that an investor should have between 1% to 10% in their portfolio. Some true experts or fans may even more cryptocurrencies in their portfolio.
I won’t go into the exact number but will reveal the top altcoins I have money invested in. Also, I will not give any hard number on the exact amount of cryptocurrencies I own. This is not a recommendation for you to buy them since cryptocurrencies are considered an investment by the US financial systems. I recommend that you conduct your own research and make your own decision to buy these or not.
Cryptocurrencies I previously mentioned were Tron and XLM. Other cryptocurrencies I own are DENT (DENT), Alphacat (ACAT), Digibyte (DGB), IOST (IOST), DxChain Token (DX), and BitTorrent (BTT).
Hopefully one or some of these cryptocurrencies turn into millions.
For some of these cryptocurrencies, I own a million of each.
So imagine if these below penny cryptocurrencies reach one cent. That’s a million dollars right there.
Of course, the taxman will get their portion.
Cryptocurrencies are considered taxable when you trade or buy them.
Find out more about how Bitcoin is thriving during the coronavirus crisis here.