Hackernoon logoCan you make $500k in one year from investing in cryptocurency with $10k? by@Cryptonite

Can you make $500k in one year from investing in cryptocurency with $10k?

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Cryptonite

Cryptocurrency & Tech Writer.

Is it possible to make half a million dollars in one year from cryptocurrency by investing only $10,000?

Right now we are in September, so if you started investing you would have only 3 months left to achieve your goal.

Now a $500k return from a $10k investment in only 3 months is very unlikely, especially with the bear market we are currently experiencing.

Here are some examples to help make my perspective clear.

Last year in 2017, Bitcoin grew over 28x, which is currently the second biggest “Bitcoin Bubble” ever. The highest “bubble” saw Bitcoin grow over 100x in 2011.

Bitcoins 28x growth in 2017 saw it grow from $900 to $20,000. That was in a BULL market and it still didn’t reach 50x growth.

So the chances of 50x growth in less than a year are very slim, especially with longer established cryptocurrencies like Bitcoin.

But what about altcoins?

Now is here is where things get interesting. In 2017 Ripple (XRP) grew over 35,000% which is about 350x growth.

So if you invested in Ripple early in 2017 you would have blown past your goal.

Another cryptocurrency that grew over 50x in 2017 was Stellar Lumens (XLM). Stellar grew from $0.002 to $0.23 which is over 100x growth.

The explosive growth of these two cryptocurrencies is one reason why cash based exchanges like CEX have added them as an investment option.

But, one thing we need to remember is that 2017 was a very bullish year for cryptocurrency. Right now we are in a drawn out bear market, which reduces the chance of massive gains.

At the same time a lot of cryptocurrencies can be bought at a discount. This makes now the best time to buy in my opinion.

A more realistic strategy for our current market would be identifying cryptocurrencies with the potential to grow 100x in the next 5 years.

Yes, 5 years. This will allow you to accumulate as much of the cryptocurrency as you can and can take advantage of any extra growth, instead of selling everything after a year.

It took Bitcoin almost 10 years to reach $20,000 and the people who profited the most are the ones who invested early when no one else was interested.

To be like these early investors you need to know how to spot cryptocurrencies with 100x growth potential.

The thing is, if you knew which cryptocurrencies were likely to have 100x growth you wouldn’t be asking on Quora, you would already know.

To have the best chances of discovering a cryptocurrency with high growth potential you need to do some serious research.

Final Thoughts

The chances of you making $500k from a $10k investment by the end of 2018 are very slim. In fact it’s almost impossible unless you get really lucky and invest in an obscure altcoin that pumps to heaven over night.

I suggest a dfferent strategy, research some good cryptocurrencies using this online guide: How to Profit in Cryptocurrency — Medium.

Next, aim to invest for the next 5 years and hold on tight.

Part of my “Cryptonites Crypto Answers” series, taken from questions I have answered on Quora.

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