Can Crypto Make You a Millionaire?

Whether you’ve been investing in crypto for a while, or are just considering your first investment, you may be wondering whether cryptocurrency has the potential to make you a millionaire.

The short answer is yes, but the real answer is much more complicated. To be clear, just buying crypto won’t make you a millionaire, but it does have the potential to do so. Confused? Keep reading as we dive into the details.

Can You Get Rich From Crypto?

Yes, it is possible to get rich from crypto, and NBC recently posted an article discussing a survey that revealed that cryptocurrency makes 84,000 millionaires each year. That being said, just buying some crypto will not, in fact, make you rich.

Cryptocurrency is just like any other type of investing, and a well-thought-out purchase order combined with some luck does have the potential to make you rich. But this is not a guaranteed result, meaning if your only goal in life is to be rich, we actually recommend not buying crypto.

Investing in cryptocurrency is extremely risky, and those with precarious financial situations should focus on a more certain and less variable form of investing first. Then, once they have some extra money to invest, that’s when they should consider crypto.

How Can You Become a Millionaire?

The truth is, while it is possible to become a millionaire when you invest in cryptocurrency, it is too risky to depend on. If you truly want to live the high life, there are so many other ways of becoming a millionaire that are much more likely to lead to results. Some of the most famous include starting a company, inventing a needed invention, and investing in the stock market.

Now, before you get too excited, know that there are many people and businesses out there just waiting to scam you with their get-rich-quick schemes. Truly becoming a millionaire will take time, money, and quite a bit of skill.

Want to learn more about the best ways to become a millionaire? We go into detail in the next section.

The 6 Best Ways to Become a Millionaire

1. Invest in the Stock Market

The number one way most millionaires are made in America is via stock market investments. But, before you start signing up for a trading account, it’s important to know that the secret to becoming a millionaire via investment is to diversify and invest regularly.

It is extremely unlikely that if you invest one time in one stock, it will go anywhere. In fact, this is how you lose money. Instead, set up regular investments that come out of your paycheck automatically each month (like a 401k) and direct the funds into 3-5 investments. We recommend choosing at least one bond and sticking to a variety of ETFs for the rest.

We also recommend doing your research and compounding any interest you make (especially at first). This will help increase your bottom line and keep your money growing.

Related: Ways to Earn With Crypto

2. Buy Real Estate

The real estate market is another common ay American millionaires are made, but it is slightly riskier than the stock market. We say this because when you buy real estate you have homes to maintain, which can be affected by fires, floods, or tornadoes. While insurance does bridge the gap, it may not be enough in the case of a disaster.

If you do decide to go the real estate route, we recommend starting small, with maybe just an additional apartment near your home. You could also buy a second home and rent out the first. Then, when you start to get enough for a substantial down payment, buy a third, and so on.

Eventually, you will have several homes and several streams of income, possibly earning you the millionaire status!

3. Start a Business

Unfortunately, for many of the above options, you need good credit and some initial capital. For those who have neither, your best bet to becoming a millionaire is to start your own business.

While many businesses need initial capital and overhead, these aren’t the ones that have made millionaires in the past few years. What do we mean by that? Just look at Airbnb, Uber, and Postmates, all businesses that started with an idea, friends, and an app—no buildings, vehicles, or massive amounts of capital needed.

4. Design a Needed Product

Another way to become a millionaire is by designing a product that fills a need. This often takes time and a little capital, but once you have a viable product, you can present it to an investor without needing to invest yourself.

Of course, you need an idea for this, so if you don’t have one, move on.

5. Invest in Crypto

As we mentioned, you can become a millionaire by investing in crypto, BUT you need to do so correctly. You’ll need to start by learning about cryptocurrency, so you know which projects are good and which are scams.

Then, you’ll need to diversify, investing in high-yield and farming options whenever possible to increase your capital without needing to invest more. For this option, you will need initial capital, but we find you’ll need less than traditional stock investing.

Once you have invested, you’ll have to sit back and hope for the best, meaning it may take years before your investment comes to fruition—something many people aren’t willing to wait for.

Related: The 8 Best Ways to Protect Your Crypto Investment

6. Improve Your Skills

The last and final way to become a millionaire is to improve your skills and look for a higher-income position.

We do need to note, however, that a high-income position rarely pays enough for you to become a millionaire on your own. However, you will have more to invest, allowing you to use some of the methods mentioned above—hopefully multiple—to truly turn you into a millionaire.

Overall, if becoming a millionaire is your goal, don’t give up! But know that it won’t be easy, and it won’t be quick—you have to work to get there!

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