Coming into a lot of money quickly can be as exhilarating as it can be daunting. That is precisely what is happening right now with the army of new crypto millionaires who took a leap of faith on cryptocurrencies and have been rewarded richly.
Cryptocurrency investments range from Bitcoin to Dogecoin and many seem to have paid off. As of right now, there are more than 100,000 Bitcoin millionaires who have earned at least $1m off their investment in the crypto industry.
The Bitcoin price surge has been long in the making and it almost happened once in 2018 before the price came tumbling down, dashing investors’ hopes. In fact, many sought to sell right away.
However, Bitcoin is hardly the only viable investment opportunity today. The “old guard”, represented by the likes of Warren Buffett, is very skeptical of crypto riches and the way the Robinhood generation of traders have got to the top. But does he have a point?
Meet Glauber Contessoto: a Dogecoin millionaire
At one point this year, Dogecoin’s value had jumped by 12,000% and, in retrospect, investing even $1,000 at the beginning of the year would have seriously paid off.
For Glauber Contessoto, though, investing cautiously was never an option and the newly-fledged Dogecoin millionaire has been able to flip a $180,000 investment into millions today.
Contessoto bought Doge when it was worth 4.5 cents, so his current windfall has set him for life. Yet, the question remains – what do you do with your crypto investment. There are generally two ways to go. Contessoto is choosing the second where he prefers to hold onto his Dogecoin believing in the currency’s potential, notwithstanding price fluctuations.
What to do with your new crypto wealth
It really depends how you have come into your wealth. Did you invest in Ethereum and Bitcoin back in the early 2010s when you foresaw the currencies’ potential and knew that they would have a role to play in finance and the digitalization of our economies or did you join in 2020 when Robinhood made it possible for armies of traders to pile on and start exploring the market as non-professionals.
These two approaches towards crypto have fundamental differences. The first one suggests premeditation and acting on information, which is what most investment is based on. In this case, you can continue to work through your crypto portfolio as well as enjoy your newly-discovered riches.
The second, though, is connected to risky investments such as Dogecoin which has paid off generously for those who believed in the meme currency, but is now sending mixed signals as to whether $DOGE can actually increase its value any further.
If you had a lucky break without being fully aware of the potential of your investment, you may want to consider cashing your investment, or a part of it, and putting it into stocks, real estate or anything that has a “real value”.
Congratulations on your acumen and prescience in investing early on cryptocurrency but just in case, make sure your wealth works for you. In the meantime, you have probably heard about Goldman Sachs employee who also cashed in $DOGE.
His reaction? Walking away from his well-salaried position.