Summary

An investor shares their strategy of turning a $100 investment in penny cryptocurrencies into$ 1 million, focusing on long-term gains and tax efficiency while acknowledging the high-risk nature of such investments.

Abstract

The author of the article details their approach to investing $100 in cryptocurrencies with the ambitious goal of achieving a$ 1 million return. The strategy involves purchasing large quantities of penny cryptocurrencies, such as Dent (DENT), WIN (WIN), Pundi X (NXPS), and ACAT (ACAT), with the hope that if even one of them reaches $1 in value, the investment would yield significant profits. The investor emphasizes the importance of holding onto the investments for at least a year to benefit from long-term capital gains tax rates and actively manages the portfolio by selling and repurchasing to maximize holdings and reduce tax liabilities. The article also provides a snapshot of the investor's current holdings and their respective returns, while reminding readers that this approach carries the risk of losing the entire investment.

Opinions

The investor believes in the potential of penny cryptocurrencies to yield high returns, comparing them to penny stocks.
There is a calculated approach to the investment, with the investor willing to risk only a small amount of capital that won't significantly impact their finances if lost.
The investor values tax efficiency, making sure to hold investments for over a year to qualify for long-term capital gains tax rates.
The article suggests that taking profits during market highs is prudent, diverging from the "HODL" strategy commonly followed in the cryptocurrency community.
The investor is optimistic about the future of their cryptocurrency investments and plans to provide updates on their progress.
The author advises readers to consult financial professionals before making investment decisions and clarifies that the article is for informational purposes and not financial advice.

How You Invest $100 in Cryptocurrencies Turning it to 1 Million Dollars

Revealing one of my cryptocurrency investment strategies

Cryptocurrency Photo by Alesia Kozik from Pexels

I always like to gamble some of my money and in this case, I invested about $100 and plan to turn it into 1 million dollars. That is a dream anyone would like to do. A little over a year ago, I invested some money on penny cryptos. You can compare this to investing in penny stocks. All of the cryptocurrencies were less than one penny each.

I figured if one of these penny cryptos reached $1, I would be an instant millionaire. While doing this, I wanted at least one million of the cryptocurrencies. Of course, I know taxes will take some of the earnings.

As a former planner, I look for different possibilities to make a lot of money. This is one way I am trying out.

There is the case I could lose all of my investment. This is why I made sure the investment was only a small amount of money that if I lost it all, then I would be mad but fine overall.

The majority of my investments are in Bitcoin and Ethereum but I wanted to invest some of my money on a few wildcard altcoins. Due to the available supply of the cryptocurrency, they will not go as high as Bitcoin. Most likely the price of the cryptocurrency would go higher. I used a little bit of hope and logic from other cryptocurrency investors on YouTube who did the initial research.

From there, I had to make sure I could buy the cryptocurrencies on my cryptocurrency exchange. I didn’t want to open too many exchanges because then I would have to worry about the various passwords to the exchange.

These are the cryptocurrencies that I own at least one million or more for my investment.

Dent (DENT)
WIN (WIN)
Pundi X (NXPS)
ACAT (ACAT)

The least amount I invested on the cryptocurrencies was $85 and the most I invested was $817.

Here is a snapshot of my current holdings.

The image above shows each cryptocurrency, the current price, and the current return. Each cryptocurrency has at least 1 million cryptocurrencies each.

There were other cryptocurrencies I was buying but the prices in the market started to increase. I was primarily trading Ethereum for these altcoins.

I am up positive on all of these investments. I recently sold 900,000 DENT since it appreciated so much. As I was writing this article, I repurchased DENT and gained an additional 30,000 cryptocurrencies since I bought them at a cheaper price than when I sold them.

One rule I am trying to stick with is limiting my tax consequences. I made sure that I held on to DENT for at least a year to get the long term tax rate rather than pay for short term taxes. Saving at least 5% on taxes is much better and that keeps more money in my pocket. Sometimes you have to look at the tax rules where you are to make the most of your investment.

For me to sell the other cryptocurrencies, the gain would be so small. If I were to sell today, this is my current profit.

WIN-$195.22
NXPS-$973.75
ACAT-$579.99

Over the next few days, I’ll continue to follow the progress on these to determine if I plan to sell some of the cryptocurrencies. If I do sell, I will most likely buy them back again at a cheaper price to add more cryptocurrencies.

When I started investing in cryptocurrencies close to four years ago, I primarily bought to hold (HODL) on to the cryptocurrency. Unlike the last bull run, I will take profits if it makes sense. There is always the case that the market could drop and you lose any profits you could have made.

Sometimes you have to think a little more to achieve your objectives. In the future, I will keep you updated on my progress.

See these other articles on investing in cryptocurrencies:

3 Lessons from Buying Bitcoin at the Top of the Market

Lessons to get you through the cryptocurrency bull run

medium.com

My Exclusive Playbook to Make You $10,000 Richer in Cryptocurrencies

HODL may not be the only way to make money in cryptocurrencies

medium.com

Tom Handy is a top writer on Medium, former Quora writer, and father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1 and Life is Like a Game.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.

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