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If you wanted to make a 5,000% return on $10,000, only buying cryptocurrency, what would you invest…by@SchusterDEV
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If you wanted to make a 5,000% return on $10,000, only buying cryptocurrency, what would you invest…

by Brian SchusterMarch 15th, 2018
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First off, you have to start with the right assumptions and the right understanding of the risks. To make a 50X return on your investment, you have to take some really big risks, even by cryptocurrency standards. This also means accepting that, likely, this won’t happen. But if you <em>have</em> to get 50X, here’s how I would think about the problem…

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This answer was originally posted on Quora. You can view the answer here. For more trending tech answers from Quora, visit HackerNoon.com/quora.

First off, you have to start with the right assumptions and the right understanding of the risks. To make a 50X return on your investment, you have to take some really big risks, even by cryptocurrency standards. This also means accepting that, likely, this won’t happen. But if you have to get 50X, here’s how I would think about the problem…

Investing in Ethereum, Bitcoin or any other top 10 cryptocurrency is likely not going to cut it. You will have to invest in something that is a very low value today, meaning you’ll have to see something the rest of the market doesn’t value today and hope that the market eventually corrects.

I’m not talking about finding a token, visiting their website and thinking they ‘have a shot’, I mean actually having a fundamental hypothesis on how the market is going to change and how your particular token is going to benefit from that. Not only that, but you’re going to need to make two bets with your token purchase:

  1. That the cryptocurrency you’re interested in will change relative rankings (let’s say going from less than 200 to the top 20)
  2. That the whole market will rebound (go from $300 Billion to much, much higher)

If either of these assumptions fail, you’re not going to make a 50X return. For comparison, only 9 tokens last year (in 2017) were able to make a 50X return, and this was a breakout year for cryptocurrencies.

So, if you want a 50X return, what should you invest in now? I’m not giving you a particular token (and never will), but here’s would be my methodology if I were to try this:

  • Find a token not in the top 20 cryptocurrencies by market cap that have ‘good’ fundamentals. This is a large topic that I cover in detail in my other posts and platforms, but the meat of it includes having an experienced team, a solid mission, the technology to achieve that mission and not screwing up.
  • When you have a list of a few cryptocurrencies that pass your first test of being worth the investment, find the one you connect with the most by joining their slack, reddit and any other communication channel. Get deep with these teams to understand which one you want to be with for the long haul.
  • Invest heavily, lock your investment away as securely as possible and become part of that community. Seriously, go write documentation, help write articles, get really acquainted with the project and try to build something. You can help improve the project without becoming a total shill for it on social media (and art that’s lost on most) and eventually find something you really love in the project.

And finally, don’t sell until you hit 50X. Otherwise, what’s the point?

Brian Schuster is a developer and writer in the blockchain industry. His content has been viewed over 5 million times since January 2017. You can view more of his content on his pateron page, where he is producing content to help his audience find their place in this emerging industry.