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

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.

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.

1/ If you have a $50k portfolio and your goal is to “make it” to $2-5m. You can’t go 2-5k into 25-10 projects. You need to make concentrated bets and unfortunately will have to flip 2-3 of those winners into something that wins again.— DeFiGod (@DeFiGod1) September 26, 2020

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

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,

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.

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

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.