We have all heard the experts predicting that bitcoin and other crypto's price would be going to the moon, dramatically increasing relatively soon. Most saying this will happen before the end of the year. This is an idea that many of us have romanticized. It could be your chance to potentially make life-changing gains. Finally being able to buy that thing you've been wanting for ages, or put some money away and finally have some financial relief, or maybe just maybe it would be enough to help you retire. Whatever your situation is, we have probably all got caught up fantasizing about what we will do.
We all dream about amazing price increases, but something that we often don't consider is just how much harder it will be to accumulate cryptocurrency at those price levels. For example; investing money into bitcoin when the price is $3,000 goes much further than it will when bitcoin is $200,000. Investing into ethereum at $100, goes much further than investing into it at $20,000. If you think by that metric, at current prices bitcoin is relatively still cheap. But it won't be for that much longer.
But, what can you do about it? The answer for many people is that they will stop buying bitcoin when the price increases to a point that they feel is too expensive. The problem with that approach is that many times the asset will never come back to reach the price point that you're waiting for. Instead, you will forever be waiting for your "perfect price," that will not come, and you will be left out; having less of the asset that you want. This has always been my biggest fear. I do not want to take my foot off the pedal in my goal to accumulate more bitcoin, ethereum and other cryptocurrency. Instead, I continue to dollar cost average into them, and also take advantage of great dip buying opportunities.
Sure it is easy to be able to decide what to do when the prices are cheap, or in the medium range. But what can you do to accumulate more when the price finally has become expensive? This is when your bitcoin and cryptocurrency planning really becomes essential. In order to be successful with cryptocurrency, and also all investing in general, is to have a plan. Sure it is easy to see things that you should have done when looking into the past. But anyone can see those things. What separates successful investors and unsuccessful investors is their ability to plan. In this situation, we need to have a plan for how we will accumulate as much cryptocurrency as possible and continue to be able to do so easily when the price becomes expensive.
The best scenario would to have already started that plan before the bull market even began. As most cases; if you begin only when the price is too expensive, then it is already too late. Fortunately, we have not reached that point. The methods that I am about to explain are all things that I am personally doing, or have done in the past. There will definitely be things that aren't included that would be great opportunities for yourself. And also some of the things included just might not work out for you.
At the end of 2019; this was when the lightbulb in my head really turned on. I had already been into cryptocurrency for some time. But this was the moment that I felt completed convinced on where the future of bitcoin, ethereum and cryptocurrency was going towards. It was an incredibly exciting idea that had come into my head. But at the same time, a panic also came to me as well. At the time I was merely buying a bit here and there each time I got paid with my meager salary and that was it. I wasn't concerned with anything else. But as I said; the thought of bitcoin going to the moon gave me great panic. With the amount of money that I was dollar-cost-averaging during 2019, I would hardly be able to accumulate any bitcoin at all when it reached price levels of $100k, $200k and even that dream of $1 million per bitcoin. When you are into bitcoin and crypto, and everything "finally clicks and you understand what is happening;" this is the moment that you realize that you need to accumulate as much as humanly possible.
And so I set a plan.
The first thing that I would do is something that I was already doing; dollar-cost-averaging into bitcoin, but with a twist. At the time I felt bitcoin and ethereum's price were extremely cheap. Bitcoin was around $7,200, and ethereum was around $120. (If only we could have those prices once more.) And so I decided to invest heavily; taking advantage of these prices levels while they lasted. This helped me to accumulate quite a bit.
But I wasn't satisfied. I knew I wanted to do even more to accumulate. This is when I began to blog about cryptocurrency. (mostly bitcoin). I won't lie, at the beginning I was earning very little from this. With the income I was earning, most people probably would have stopped, yet I persisted. As I continued to write consistently, my follower number also began to increase. This made it much easier for my articles to perform well. Over a year later and now the income that I receive from blogging is actually more than what I was investing with cash before this whole process began. The crazy thing is, that because all of my rewards were re-invested into either bitcoin or ethereum. As the prices of those assets rose, so did my earnings. So while those original posts of mine at the time didn't seem very successful. Bitcoin and ethereum have since performed a 10x in price, and therefore my earnings from those posts received the same performance. So in short, find a way to make a side income that can grow into more.
The blogging has helped me in other avenues as well. It has acted as somewhat of a resume for me in the cryptocurrency market, and some companies have tried to hire me, pay me for some freelance work, and open other doors for me in the industry as well.
Next, the big money maker. This of course is lending out your bitcoin and ethereum. I choose to lend mine out to a variety of services that include Celsius, Ledn, BlockFi, and Nexo. Each one has their own benefits and drawbacks, but they're a great way to earn a passive income with your bitcoin. The great thing about lending out your bitcoin is that you are paid out in bitcoin. As the price of bitcoin increases, so too will the monthly reward that you're receiving in-terms of dollars value. If bitcoin were to go to the moon, the interest that you are receiving today could become quite valuable. When I first began lending out my bitcoin, it was always my goal to be able to earn at least 0.01 BTC per month, and 0.05 ETH per month by just lending. Thankfully I have been able to achieve those numbers, and currently am striving to double those original goals. When I first began lending out bitcoin, 0.01 BTC would have only been equal to about $72. But, just last month that would have been nearly $600. If BTC goes to $100k, that same interest would be $1,000 per month. You can see that if you are able to build up a significant amount of lending it interest it can become quite a valuable side-income.
For the most part those have been my 3 largest strategies and each has worked out very well for me. Along the way I have constantly tried to add new methods. Some of these include taking out a loan on bitcoin when it was extremely cheap. (Don't recommend this, only for high-risk takers). I have also dabbled in ethereum mining. (don't recommend as ETH mining will be ending soon). And in the future I am co-starting a crypto podcast, and also considering a YouTube channel as well.
The key point of this article is that you need to ask yourself if you are doing as much as you possibly can to accumulate enough bitcoin and ethereum!? Something along the way that really helped me was when I decided to drop all 'junk" coins. I stopped trying to find the hidden gems, and instead exchanged them all for BTC and ETH. From that point on, those two coins have been the majority of my focus.
How about you?! What are you doing to make sure you can still accumulate a large amount of bitcoin and ethereum even when the prices do go into the stratosphere?!
As always, thank you for reading!