The From $0 to $10,000,000: Step by Step Wealth Building

The From $0 to $10,000,000: Step by Step Wealth Building


It seems inevitable that BTC will reach $100,000 per coin soon. Polymarket pegs the probability at 60% before this year ends (up from below 25% before Trump’s victory).

The massive gains to be had in the digital asset space are thus likely to be elsewhere for 2025. Our team still holds that the larger returns are to be found in AI and RWAs … and memes.

This got me to think about the broader process of wealth building–something we’re likely to see if the crypto bull run continues as many expect.

Other things being equal (no meteors striking the earth, plagues, civil wars, etc.), the process of acquiring wealth is linear

And while I don’t think I can explain how to transition from $0 to $10,000,000 in 3 or fewer years, I do think that acquiring that first $1m in a 7 to 10 year range is largely a skill. After that $1m, the march to $10m is relatively quicker.

To summarize the progression in an image, below are the 6 main stages involved in building wealth. I’ve added stage 7, giving back, as an “optional” part of the process since you aren’t strictly building wealth at that point. But as a human being with basic decency it’s something you should do.

The first two stages focus on restructuring your personal finances to the point that you’ll have some cash that you can 100% afford to lose. 

Principally, your tasks center on moving your costs down (not necessarily paying off all your debt) and moving your pay rate up–through working another job, or negotiating for a pay raise, etc. 

Once you have some free cash (= money that, if lost, wouldn’t affect your day-to-day living), you’re ready to invest and have reached stage 3. Our approach has always been to trade bubbles as they are still the best wealth generators you will ever encounter.

The Alpha Rider tier delivers content that will help people who have less than $10k (roughly) to invest. You need information to answer two key questions. 

First, what do you denominate your gains in? Assuming you make quite a bit, trading $BRETT or whatever, where do you put your profits? Bitcoin maximalists say that they “denominate” in BTC, meaning that they’ll store all their profits in Bitcoin. But BTC is highly volatile so I don’t  think that makes sense.

That’s why this tier has always included a yield farming report (to be renamed The Stash Report) because this has always seemed the best place to stash your gains. Over the long term, these pools tend to yield 10% - 15% annually and they always go up. We have a new pool that looks great on Solana that should allow you to “denominate” with 30%+ gains.

Second, you need to figure out how to make quick gains from small sums. If you trade meme coins, for example, you can make quick gains … or lose everything. Your $100 can turn into $1000 or $0 over a week. If it only takes you a week to get another $100 to try again, your replacement risk is low. Stash the principal of your gains (the $100 of your $1000 win) in your denominating strategy and continue to build wealth.

To facilitate this goal, we offer the On-Chain Investing Report. We’ll round up popular memes and try to identify potential cabals pumping those coins. This tier will also have many hours of video guides for how to use the appropriate tools to keep yourself safe and gain an edge. 

Here’s an example note on memes for free. We no longer think that $MOTHER has as much potential. Because Iggy introduced utility into the meme coin’s operation, this will hamper its potential upside value. Utility is good for a floor price, but it puts a ceiling on gains. Just look at $CRV, which has a $350m market cap. The global stablecoin ecosystem couldn’t run without it and yet $GOAT, which does nothing, has a $1b market cap.

In stage 4, you need the tools and information from traditional finance to help. Our current “Crypto Rider” tier will thus include sock information–hence the renaming to “Sigma Rider.” You need a briefing on macroeconomic trends, global index funds, and updates on various commodities.

When you reach stage 5, you need tools for additional “alternative investments” to diversify your wealth as it grows. These tools include leveraged investments, specific sector focus, such as crypto stocks, and opportunities for venture offerings. For example, we recently looked at an investment with a potential 166x gain over five years.

Our paid tiers are changing to support you along your journey and it is a linear process. You shouldn’t try doing stuff at later stages in earlier stages because you have different objectives. Small, illiquid memes are for smaller traders while large portfolio diversification strategies are needed to preserve capital for wealthier traders.

If you’re patient, and merely DCA into Bitcoin at this point, you will make money in a bull run. It’s worth reflecting on what your overall wealth objectives are will be and what information will be most useful to you.

 

Happy Trading!

― Sebastian Purcell, PhD

 

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Sebastian Purcell, PhD
Sebastian Purcell, PhD

CEO for both 1.2 Capital and 1.2 Labs | I'm an academic turned crypto hedge fund manager and incubator director.


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1.2 Labs Research Insights

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