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

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Bitcoin, defi, crypto: Can you flip $50K to $2M?

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Bitcoin, defi, or crypto in general, is a very volatile market. Depending on how acquainted one is with the market, there are opportunities to make huge profits. This article is, in sorts, a continuation of the article that talks about risk management in crypto trading.

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.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.
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