How to Make Your Millions in the Cryptocurrency Market

Bitcoin is not the only way to get your Lamborghini

Having a million-dollar cryptocurrency account or even a large account doesn’t happen overnight. There is one secret I will reveal that you should pay attention to. If you’re not already following this plan, well maybe you should after you read this.

Remember a few years ago when people talked about the Bitcoin millionaires and their Lamborghinis? Well, the same can happen in the next bull run yet it could be with an altcoin instead.

Altcoins are cryptocurrencies that are not named Bitcoin.

Bitcoin is expensive when you look at prices today. At the time of this writing, Bitcoin is sitting at $9,713.49.

So to buy one Bitcoin is not cheap. But to have several Bitcoins is a lot more expensive to make your millions in cryptocurrency.

An alternative is to buy altcoins which are much less expensive. Several altcoins can be picked up for a relatively affordable price.

Granted I am speculating that most altcoins will rise when Bitcoins rises or around that time when altcoin season enters the cryptocurrency space.

This is what happened during the 2017 Bitcoin bull run. Most cryptocurrencies rose and hit record highs. I believe we will see the same in the next bull run.

So this brings us to how to accumulate a lot of altcoins without spending $10,000 all at once.

The secret is dollar cost averaging, which is very popular in the stock market sector. Dollar cost averaging works for a novice and experienced investor since there is no secret formula and anyone can do it.

What is Dollar Cost Averaging?

Dollar cost averaging is when the investor buys stocks or another investment at a regular interval. For example, the investor buys shares of a stock over a period of time. The investor does not try to time the market but invests consistently every month or over a set period of time.

Here is a video from Paddy Hirsch who explains buying stocks using the dollar cost average method.

In this case, Paddy uses stock to explain dollar cost average. You can use the same method for buying cryptocurrencies.

You would substitute the stock Paddy used for cryptocurrencies. You buy cryptocurrencies on a regular basis.

Trying to time the market for the lowest entry in an investment is not the best idea unless the person is a very seasoned investor. Even these investors can make mistakes and get it wrong.

By using the dollar cost averaging system the investor can build their wealth and savings over a long period of time.

You should use the dollar cost average method to buy cryptocurrencies. The method is still the same to buy the cryptocurrencies as you buy them on a regular basis.

In a retirement account, an investor can have a Self-Directed Individual Retirement Account (SDIRA) set up and you make an automatic withdrawal each month to fund your investment account. Most brokerage accounts do not sell cryptocurrencies but some SDIRAs do.

Dollar Cost Average Helps the Investor

If someone has a set monthly budget, they can use dollar cost average to make their investment. The investor should send what money they can for their investment account each month. Easy options are available as the investor can set up their automatic withdrawals for a set amount every month.

Well-known investment company Vanguard stated on their website that, “dollar cost averaging spreads the risk of investing.”

Investing a lump sum all at once is possible, but it also opens the possibility of investing the money at a high price with the chance that the investment drops. Spreading the money out over a period of time with dollar cost averaging helps reduce the risk of buying at a high price.

Many options are available for cryptocurrency investors to enter the market and the process to do this is not as hard as it looks.

Let me give you an example so you can see what I mean.

I will use the popular cryptocurrency, Cardano (ADA) as an example.

Cardano is sitting at number 11 on CoinMarket Cap out of 5,487 cryptocurrencies.

During the last bull run, Cardano reached a high of $1.14.

Cardano is currently sitting at $0.055418.

Most likely Cardano will surpass, but I will use the previous high as an example.

So if Cardano matches the previous high, you would need 877,192.9 Cardanos at the current price. Once the bull run happens, you have your million dollars. This does not include any taxes you owe of course.

So I’ll round off the number of Cardanos needed to 1 million dollars to 877,193. At today’s price of $0.055418, you need to spend $48,612.28 for 877,193 Cardanos. There may some transaction fees that I did not take into account for this investment.

Then you have to be patient. The cryptocurrency market will go up and down over the next few months until the bull run happens. Personally, I don’t believe the market will take off any time soon.

The coronavirus is affecting the economy as well as the cryptocurrency market.

So the erratic behavior we see in the stock market, we will see in the cryptocurrency market.

You can read more about one reason why the cryptocurrency market behaves this way here.

Many outside factors are affecting the cryptocurrency market so a lot of patience is required investing in this space.

Are you looking forward to the next cryptocurrency bull run?

Disclaimer — the cryptocurrency Cardano is used as an example and not meant as a buy recommendation.

The author does not own Cardano but owns several other cryptocurrencies.

Tom Handy is a top Investment and Bitcoin writer on Medium, and father of two kids. He retired from the Army and sits on several non-profit boards. Tom is the top Yelper in his community and a top Google Guide. He’s on several social media channels and you can find him on Twitter @tomhandy1 and Instagram @tomhandy1.