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There is no point denying 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 now stands at about $12,000, it takes just 100 BTC to become millionaires.
But how to determine how many tokens to buy 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, when taking the Yearn Finance (YFI) token as a reference, it reached $15,000 in just a few weeks.
But this is a rare occurrence, which is not the case for most of the tokens in circulation, so we will certainly have to change the parameters to be taken into account in order to become millionaires.
Things to consider for a crypto
The first parameter we have to take into account is certainly the starting price of the token and the quantity of tokens available on the market. Then, based on this data, we have to calculate how much we will have to invest.
Supposing that a token has a cost of $0.001, then the ideal amount to invest is $1000, because if we divide our budget by the price of the token, then we can obtain 1 million tokens.
At this point, it is only a matter of waiting for the trend of the market, because in the case that it reaches a price of 1 dollar a token, then we will have reached our target, with a really minimal initial expense.
Clearly, this might 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 reach and then even exceed the threshold of 1 dollar a token, so it takes a lot of patience to reach those figures.
A mistake that many people make is to panic as soon as the price goes down by a double-digit percentage and, to prevent their funds from losing value, they tend to sell and get rid of the tokens, a choice that might make sense but is not always correct in the long term.
The same thing is valid as soon as the token arrives to record some important figures, since even with a value of $0.1 it would be 100 thousand dollars. In such cases, one may be tempted to liquidate the positions, but perhaps after a year, the token might rise again.
In short, there are no specific rules to become rich with crypto and often even the most important traders say they were lucky to have invested in one project rather than another, but surely research, patience and perseverance can help.