Twenty-Five Year Old Makes $1,000,000 with Bitcoin. Find out how he did it.
I was talking with a friend in my apartment building and he said he made $1,000,000 investing in Bitcoin. We then proceeded to have a long discussion about what he should do with his life now that he is financially secure. But of course the question I had is the same question you have - how did he manage to make $1,000,000 with Bitcoin?
After speaking with him for a while he told me that he purchased $35,000 in Bitcoin in early 2016, based on some tips he got from his friends who were also buying into the cryptocurrency. He paid just under $500/coin back in early 2016. He sold in early 2018 for around $15,000/coin - or 30X the money he invested - so his $35,000 grew to around $1,000,000 when he sold.
He purchased the Bitcoin in 2016 because his friends were doing it and Bitcoin was starting to get hot - so there were really no lessons there in terms of when to buy - buying because "it was cool" is not something I can apply more generally.
As for selling, he thought that he had made enough and wanted to cash out. Growing the investment to $1,000,000 was a great accomplishment. But I don't think we can advise you to sell whenever your investment gets to $1,000,000. Also, he told me that he had "a feeling" that Bitcoin was going to drop in value - which turned out to be true. But I was following the predictions of the analysts and then, as now, you'll find some who were predicting price appreciation and some who were predicting drops in the cryptocurrencies. So, unless my friend had some special predictive power that remains hidden to me, I can only conclude that he was lucky.
The answer then to the question of how to make $1,000,000 from Bitcoin like my friend did is to be lucky. Since we, at Smart Invest Canada, always advise our readers to make smart investment decisions, we can only advise you that trying to be lucky is not a good strategy. You should only make investments in assets where your investments are more in just blind bets. However, if you must invest in cryptocurrencies, please do it responsibly only with an amount of money you can afford to lose. Then have some fun with it, and enjoy the ride!