Anatomy of a crypto millionaire

The cryptocurrency markets have been good to many investors and traders, producing crypto millionaires and billionaires. Did you know there were as many as 100,000 Bitcoin millionaires in the world prior to the 2021 bear market? Now there are closer to 24,000 wallets worth more than a million. It’s impossible to quantify how many lives the crypto sector has changed for the better. To this day, there are people all around the world learning about the crypto markets for the first time, eager to jump in and make some money.

If you want to succeed, you’ll obviously want to know what successful cryptocurrency investors and traders have already done. How did they know what to invest in, and when? Is there any general advice a successful crypto investor can offer?

What are some common traits that can help you get your start in the crypto markets?  Here, we examine four traits of a crypto millionaire to help you understand the way that they think, strategize, and invest.

They think for themselves

You may think that a successful crypto investor would never say anything negative about crypto, but that’s not the truth. Several well-known investors often comment when they think a cryptocurrency is overvalued, or irrelevant. They all might research differently, but they all think for themselves.

Some crypto millionaires believe in one cryptocurrency or another, and it obviously may reflect what they invested in. Some might be more bullish on particular projects and trends, but they all have defined opinions about a project’s potential/opportunity. They don’t blindly follow one analyst, but think independently about cryptocurrencies. While newbies are screaming out to HODL all your coins, many crypto millionaires are figuring out when to take profit or cut their losses.

It’s important to take their opinion with a grain of salt. A crypto millionaire might be a success story, but he or she won’t always be right. John McAfee, the famous computer programmer, entrepreneur, and crypto influencer, famously predicted that Bitcoin would reach $500K by 2020. While this never happened, the point is that McAfee believed that it was worth much higher than its current price. He has since passed away.

They’re patient

Look, it’s highly unlikely  that someone becomes a millionaire overnight. (It’s nearly impossible.) However, many new crypto traders and investors think that they can find a DeFi project or cryptocurrency that can change their net worth within a couple of days, or weeks. For the vast majority of crypto millionaires, they were able to wait some time before their decisions paid off.

Erik Finman made headlines all across the world for becoming a crypto millionaire as a teenager. However, he only became a millionaire down the line, around the time that he became 18. This is actually six years after Finman FIRST invested in Bitcoin in 2011 – when he was 12 – thanks to a gift from his grandmother.

They truly believe in crypto

It’s easy to understand why someone who has made a lot of money with Bitcoin or other cryptocurrencies might enjoy researching the space. However, some of the most successful people in the cryptocurrency space actually BELIEVE in blockchain technology and how it can change the world.

We often see them eager to appear on crypto podcasts to help spread the word about what they are doing, or why blockchain is the future. Some of them are busy building their own companies, as well. Regardless, there’s no question: they’re all in on crypto, and it isn’t just a “trend” to them. If you invest in Ethereum one day but are losing your mind at a 10% dip, then it’s safe to say that you might be too emotional to end up a successful crypto investor.

Many of them end up working for major cryptocurrency startups, while others build companies of their own. Regardless, it’s clear that many of the successful crypto investors believe in crypto to the point where they become “crypto ambassadors,” even if they can afford to do something else with their money. For example, Cooper Turley, a crypto millionaire, regularly writes about cryptocurrency news at DeFiRate.

They invest what they can lose

There’s one very central rule to any and all investing, including cryptocurrency investing: only invest what you can afford to lose completely. Mark Cuban, a billionaire entrepreneur, may not be someone who gained most of his wealth from crypto, but has in the past commented that you should treat crypto like a bet because of its volatility.

Cuban suggests that you invest 10% of your savings into crypto. This way, if you lose all of your money, you won’t have to worry about taking care of your other obligations, like your mortgage. It can be treated like a “Hail Mary” of sorts—if it works out, great…but if not, you’ll live. Many crypto millionaires made this initial decision, but also made sure that their investment wouldn’t completely break them even if they lost it all completely.

More recently, Cuban explained why he thinks Bitcoin is a better safe haven investment than gold.

The last word on crypto millionaires

It’s easy to beat yourself up about not throwing your life savings at Bitcoin the first time that you ever heard about it. The truth is that many institutions have been skeptical about cryptocurrency for the longest time, and some are still bashing Bitcoin and other cryptocurrencies to this day.

It can take a lot of time and effort to become a crypto millionaire, and it certainly won’t happen in an instant. We hope this guide gave you some actionable advice on how to think differently about the markets and what you hope to gain.