Bitcoin and cryptocurrency are markets that can change lives financially forever. It can bring you great riches, and also take them away in an instant. One of the most popular theories amongst crypto enthusiasts is that this market will soon cause one of the largest transfers of wealth the world has ever seen. However, it is entirely up to you if you will end up between a part of that transfer.
One of the most common questions asked in the crypto market is how long it takes to get rich in this market. The common thought is that with constant accumulation you can make great gains during your first full cycle. You can become rich during your second cycle. And you can obtain generational wealth during your third cycle.
It all sounds so easy. If all it takes is a commitment of 8 to 12 years to get rich with crypto; why doesn’t everyone do it? Anyone who has been invested in this market during the last two years will easily be able to tell you the answer. Most people don’t have what it takes to survive in this market. The stress of prices being incredibly volatile is enough to send most people running for the exits. It takes a special kind of person to be able to see their crypto net worth drop by over 80%, and still keep your conviction in the market.
If that doesn’t send you for the exits, it's likely the daily, and weekly FUD will. Countries banning it, taxes increased, ESG FUD, and becoming the main enemy target of many politicians.
If you have been in the cryptocurrency market long enough, it’s likely that you already knew the two examples. However, there is one more thing that sends most people to the exit in crypto.
During certain points of the crypto cycle, it can be very difficult and nearly impossible to track your own progress. Perhaps your original goal was to accumulate $100,000 worth of Bitcoin and crypto. Each week when you get paid, you continue to heavily invest in the market. But, prices have constantly either been moving sideways, or even downward. It begins to seem that you are just pouring money into something that isn’t giving you any results. Similar to putting your cash in a fireplace. The value of your cash is seemingly disappearing.
It seems that no matter how hard or long you try, you never seem to be making any progress; causing you to lose all of your motivation to keep trying. This is actually the biggest hurdle in determining whether you will be able to survive in this market long enough to reap the benefits of the bull market.
This is exactly why it is so dangerous to look at your crypto portfolio in terms of dollars. If you are in the market for the long term, you should instead keep track of it in terms of Bitcoin or your native crypto asset. The thing that you always need to remember is that accumulating crypto is similar to pulling back the lever on a slingshot. At first, during the bear market, you will not be able to see any results. However, once the bull market finally comes. That is when the slingshot handle is released and your portfolio goes parabolic. Since my goal is to accumulate as much Bitcoin as possible, that is why I use Bitcoin as the unit of account for my portfolio.
How about you? Do you value your portfolio in fiat or crypto?
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