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                                        Crypto Success Stories and How You Can Start Investing Today

Crypto Success Stories and How You Can Start Investing Today

28 Jan 2022
Reading Time: 16 minutes

Cryptocurrency has evolved throughout the years and has brought in profits for investors that never saw it coming. For most people, the idea of investing in cryptocurrency is terrifying. The price of Bitcoin has crashed time and time again, it has grown almost 1000% in value in one year only to crash in the next. Then, it soars high for the next years just after whales stop short-selling. Cryptocurrency is unpredictable at best, providing no annual returns after you invest before exploding into a new all-time high seemingly overnight. It's an extremely risky investment, and there are tales all over the internet of people who have lost their life savings through bad investments or simply due to theft.

However, it doesn't need to be this way. There are ways you can invest in cryptocurrency and not lose everything if the worst were to happen. This article is going to talk about the examples of crypto success stories from individuals who invested just for fun, to those who truly believe in the fundamentals of Bitcoin and the rest of the blockchain technology. We will also give you the basic tips you need to invest in Bitcoin and altcoins and not be taken advantage of by hackers, scammers, or just people who don't know what they're doing.

Disclaimer: This is not financial advice

How Do You Make Millions from Investing in Cryptocurrency?

There are two types of investors: the newbie investor and the experienced investor. 

The newbie investor can be defined as someone who has just recently heard about cryptocurrencies and is interested in investing a small amount of money to see what happens. 

The experienced investor, on the other hand, has been involved with cryptocurrency for a long time and knows what they're doing. These definitions are not concrete – you might be a newbie investor who has been studying up for years or an experienced investor who wants to take a risk and invest more than they should.

That being said, the advice for both types of investors is almost exactly the same. There are two methods you can use: trading cryptocurrency and investing in companies that release their own tokens. 

Most people know about trading – it's where you buy low and sell high to make a profit off of a cryptocurrency's price. However, this is not a good method to use unless you have a lot of experience and it requires timing the market correctly – even if you do time the market correctly, it would be far too risky to risk investing all your money in one place. There's also another way for new investors: investing in tokens that companies release during an ICO (Initial Coin Offering). 

Most of these tokens are extremely risky, but there are a few that offer massive returns. The key to investing in cryptocurrency is knowing which ones will rise exponentially and which ones will drop like flies after the first day.

The advice for trading cryptocurrency has already been mentioned – you need to know what you're doing in order to invest your money in cryptocurrency. 

Even if you do know what you're doing, the risk is too high for most people. On the other hand, investing in token sales is a much better option. This requires no experience and no knowledge of the market whatsoever – all you need to know is which companies are worth investing in and which ones aren't. If you invest in a company early on, those who invested late will be stuck with the scraps and you can make a massive return.

There's no way to give one single piece of advice that works for everyone – it all depends on how much money you're willing to lose and if you're willing to put time into learning about cryptocurrency. If you're okay losing everything, trading cryptocurrency is not quite the worst way to invest in cryptocurrency but it's still pretty risky. You could also spend months studying up on cryptocurrency and investing in ICOs which are extremely risky themselves. However, if you have a lot of money to invest and can stomach high risk with possibly high returns, cryptocurrency is the way to go.

The one thing you should know about investing in cryptocurrency, whether it's trading or ICOs, is that it can be very addicting. If you start making a lot of money and see your investment rise exponentially overnight, there's a good chance you'll be hooked on watching it rise over time while trying to make even more money. Just remember not to invest any more money than you are willing to lose!

Top 7 Crypto Success Stories

Top 7 Crypto Success Stories

Javed Khan

Javed Khan began using cryptocurrency in 2018, when Bitcoin was around $3,000. But every time he let a Bitcoin sit, its price would rise. As a result, he saw an opportunity here. When the price of Bitcoin was low, Khan cautiously started buying it when there was no news regarding it. He sold his Bitcoins and bought himself a new car, a house and a few other things he always wanted.

As soon as Khan set up his new business, he faced a string of bad luck. People who invested in cryptocurrencies were starting to lose faith and panic selling began. As people started selling en masse, the prices dropped and kept dropping for three months until they hit rock bottom.

Everyone seemed to be losing their minds during these frantic trading days. Javed Khan is a cool-headed man and he waited patiently for the market to stabilize. When it did, he started buying again. And his timing was perfect—the value of Bitcoin has been rising ever since January 2019, when President Trump announced a trade war with China. The war caused global markets to drop and many people turned their heads towards cryptocurrencies.

As a result, Khan saw the prices of Bitcoin rise from $4,000 to well over $7,000 in just a few weeks. When asked if he was going to sell his bitcoins again and make even more money this time around, Khan smiled and said that he's not selling any time soon.

"I'm going to be a millionaire soon," he said. "Who doesn't want to spend the rest of their life in luxury?"

Jeremy Gardner

When Gartner discovered that anybody with an internet connection may send money to someone else, he saw a chance in bitcoin. In 2013, he began investing in bitcoin. He turned his savings and stock holdings into cryptocurrencies. As the prices rose, so did his stock brokerage commission income, making him a millionaire by the age of 30.

"People will understand that this is a secure way to transact business," Gartner said. "I think it could be as big as the internet. I hope to god it's going to be."

Many people also invested in bitcoin, buying up nearly 120,000 bitcoins, which have been valued at more than $1 billion. But Gartner did not invest in the digital currency to make a profit. "I did it as a super nerd investment," he said. "The intention was never to get rich. I don't care about getting rich."

James Saye

In May of 2018, James was hesitant to invest in cryptocurrency since it had just started but he took the chance and invested £500. The price rose by 500%, and he made a profit of £2500 by cashing out his gains. 

Erik Finman

Erik Finman was just 12 years old when his grandmother gave him a $1,000 gift in 2011. All of it went toward bitcoin mining. Because bitcoin was valued at $1,200 a few years later, it paid off. Botangle is an online education firm founded by Erik using the money he made from bitcoin investments.

Investors were interested in buying the company for $100,000 or 300 bitcoins. Erik went with bitcoin again. Why? Because he'd made a bet with his folks that if he was a billionaire by the age of 18, he wouldn't have to go to college. In a nutshell, Erik refuses to attend college.

According to Erik, college is a waste of time and money. He won't be going anytime soon. In the meantime, he'll continue his work as a bitcoin entrepreneur.

Kristoffer Koch

In 2009, Kristoffer was working on his master's degree in encryption at his University in Norway, where he became aware of bitcoin. Intrigued to see what it was all about, he spent around $26 and acquired himself 5,000 bitcoins. It sure was affordable when it came to pricing.

He discovered he was essentially a millionaire after cashing in some of the bonds while listening to news reports about bitcoin. He still has 4,000 bitcoin left in his account.

Kristoffer sold 200 bitcoins to get enough money for a new house in Toyen, one of the wealthiest areas in Norway.

He did not purchase the property with cash, but only used the profit he made from his bitcoin investments to make this move possible.

Today, Kristoffer has no regrets about investing big at such an early stage and thus, becoming wealthy.

Daniel Crocker

Daniel was an apprentice at an IT firm in 2012 when he began discussing with his coworkers about making some additional money. As a result of hearing about Bitcoin, Daniel decided to invest.

He kept those coins for eight years, as the value of each rose. He sold portions of his holdings last year in order to finance the purchase of a new home.

"I was fortunate enough to be part of the community when it wasn't worth much," he said. "I mined some back in late 2010 and kept them for a couple of years without really caring about its value."

The Anonymous Mr. Smith

No one knows who Mr. Smith is, but his tale is legendary. Mr. Smith invested $3,000 while working in Silicon Valley in 2010. That means he had almost 20,000 bitcoins back then when the price of bitcoin was just US 15 cents.

3 years later, with the price rising by 10% or more every day, he sold 2,000 coins when the price hit $350. When the price hit $800 a few days later, he sold another 2,000 coins. He’d already netted $2.3 million. Today, he is a legit major investor and traveler. He’s still anonymous, but those who know him say he is as responsible as anyone for the rise in bitcoin price.

More Companies Now Support Crypto

With the likes of Google, Meta, Mozilla and gaming companies showing interest in cryptocurrency, the crypto success stories of these small-time individuals made it clear that this was an opportunity for big-wigs to grab a slice of the pie. At the same time, people who have no prior knowledge of investing suddenly want to get into the crypto craze as well.

That’s why financial companies like Visa and Mastercard now allow the purchase of crypto directly from their apps, although the fees are quite high. Newer companies like Paysail makes it easier for B2B payments transfer faster and cheaper than PayPal or any other major name that involves online transactions. 

More Companies Now Support Crypto

Other industries such as sports, agriculture and e-commerce also now want to add in the blockchain technology to help improve the infrastructure of their businesses and bank on the crypto market too.

The Risks that Involve Crypto

If you're new to investing in cryptocurrencies, there are some risks that might get your attention.

The risk is inherent in all forms of investing - be it stocks, real estate, or even "traditional" currencies like the Australian Dollar (AUD). When you invest via cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), you are taking on the risk that the value of your investment can go down, which means it could be worth less than what you paid for.

There are other factors that could affect one's investments - governments can decide to ban cryptocurrencies, hackers can get into cryptocurrency exchanges and steal private keys leading to theft of invested funds, or a better and cheaper cryptocurrency can be developed overnight.

How to Take Profit and Prevent Losses

Do your research before you buy, and try to invest with a plan. This means figuring out how much money you want to invest and what is the expected holding period for that investment. For example, if you're an investor looking at putting $200 worth of Bitcoins into your investment portfolio, you may want to invest only as much as you can afford to lose (so maybe $100).

On the other hand, if you're looking at investing for 10 years' time and want to hold one BTC as your "base", then you'll need to think about how much volatility could affect the value of your BTC.

Another way to minimize risk is by not investing all in one cryptocurrency, even you think it's the best. This means splitting up your investment portfolio so that if one aspect fails - whichever cryptocurrency or UITF you invest in - at least the rest will survive and mitigate losses.

Investing responsibly and knowing what you're getting into when you invest in cryptocurrencies is the best way to minimize risk.

Bottom Line

Cryptocurrencies are becoming more popular as an investment vehicle, with Bitcoin leading the way in terms of market capitalization (current market cap stands at almost $200 billion), but there still remains some volatility. The creation and proliferation of cryptocurrencies lead to an increase in their market cap, which means that prices could sink below the values of investments.

So while there are great gains to be had in cryptocurrencies, you should always think of them as extremely volatile instruments - more like your money in the stock market than cash in your wallet. Read on for some tips on investing responsibly and minimizing risk.

Who knows? Maybe one day, the news will come flocking at your door to interview you on how you invested in the right project and made millions of dollars out of it. 

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