Needless to deny it, many of us have approached the blockchain and crypto sector in particular, hoping to become millionaires in a short time.
In the case of Bitcoin (BTC), for example, which is now about 12 thousand dollars, we need just 100 BTC to consider ourselves millionaires.
But how to determine how many tokens to take and at what price?
One might think that 100 tokens of any project could be enough to become millionaires as soon as the price of the asset reaches $10 thousand, which is extremely difficult but not impossible. In fact, if we take Yearn Finance’s (YFI) token as a reference, it reached $15,000 in just a few weeks.
But this is a rare case, which is not the case for most of the tokens we find in circulation, so we will definitely have to change the parameters to be taken into account in order to try to become millionaires.
What to take into account of a crypto
The first parameter that we must take in reference is surely the starting price of the token and the amount of tokens available on the market. Then, based on this data, then we have to calculate how much we will have to invest.
Assuming that our token has a cost of $0.001, then the ideal amount to invest is $1000, this is because if we divide our The News Spy budget by the price of the token, then we can recover as much as 1 million tokens.
At this point it is just a matter of waiting for the market trend, because in that case even with a price of $1 per token, then we will have reached our goal, with a very minimal initial expenditure.
Obviously this may never happen and it all depends on the type of project.
How long does it take to become a millionaire?
It is difficult to give an answer to this question, because it depends a lot on the project and its solidity, but over time we have seen that on average in about 2 years some projects have gone from a few cents to a few dollars.
For example, for Chainlink (LINK), it took about 2 years – from 2017 to May 2019 – to touch and then even exceed the threshold of 1 dollar a token, so it takes a lot of patience to get to those figures.
In fact, one mistake many people make is to panic as soon as the price goes down by a double-digit percentage and, to prevent the price from losing value, then they tend to sell and get rid of it, a choice that might make sense but that is not always correct in the long term.
Same argument is valid as soon as the token arrives to mark some important figures since even with a value of $0.1 it would be 100 thousand dollars. In these cases you may be tempted to liquidate the positions, but maybe after a year the token could rise again.