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29 March 2024
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Bitcoin, DeFi, crypto: Can you flip $50K to $2M?


Bitcoin and bubbles

The crypto market serves a wide variety of people – to some, this is a speculative haven, and a potential portfolio diversifier, to others, the ethos, and ideas behind the ecosystem could be alluring.

This article is basically for the investors – be it traders, or long term hodlers.

The above tweet by DefiGod, recieved a lot of traction – a lot of users disagreed and said that it is impossible to do so. However, it isn’t true, it is possible to flip $50,000 into $2 million but it isn’t simple.

$2 million is basically 40x of $50,000, ie., one would have to 40x their initial capital to do so. 40x isn’t a big deal, especially in the land of crypto. With bubbles like ICOs, IEOs, STOs, defi, etc, 40x doesn’t seem a daunting goal to reach.

The tough part is, however, finding a diamond in the rough

Diamond in the rough

To find that one token or multiple tokens that would help hit the target is a complex thing and is different for everyone. Investing, in general, isn’t the same for everyone and depends on the character of a person. Based on this, investing can be classified into 3 types,

  1. Active Investing
  2. Passive Investing
  3. Semi-active Investing

Hence, investing based on one’s style would help reach the goal much easier.

Take, for example, bitcoin – although a lot of people missed the initial rally, a lot of people still did more than 40x on their investment and are still profiting. These are long-term hodlers and look mostly for fundamentals and belong to the passive investing camp.

Traders belonging to the active investing group, where they can choose assets on a much shorter time frame, disregarding the fundamentals. While selecting coins for traders is a different task, a common example is shared below.

Altcoins and their ROI

Approximately, form 2019 to the present time, these altcoins performed the best and could easily help reach their $2 million goal.

  1. Chainlink has seen a 6826% surge since 2017. From 2019 it is still above 6000%.
  2. Aave’s Lend token has surged more than 9000% since 2019.
  3. Synthetix token has seen more than 10,000% since 2019.

Hence, it all boils down to finding the right gem and doing the initial and fundamental research. However, investing all the money in one project does come with a high risk.

News source

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