How to Really Use Cryptocurrency to Create Generational Wealth

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— “This is the dumbest bull market ever”

— “The trend is now downward”

— "It won't end well anymore, accept it"

These are the things I see all the time on my timeline. Listen, because you never know:

1. Cryptocurrencies have been rising and rallying for 15 years.

From a statistical perspective, betting that this is the exact year that all the data changes and can only go down would be the worst trade. The risk vs. reward is not in favor of this 15 year decline in accuracy.

2. This isn’t a real bull market yet

For many people, the statement that this is the worst bull market ever is not entirely wrong. But it is also true. This is because we are not really in a bull market yet.

I know what you’re going to say: “Ha, have fun round-tripping or betting on super cycles”.

I wouldn't bet on any of this.

I'm just looking at the facts. First, it's 2024, and although Bitcoin has risen a lot early due to the influence of the ETF, historically, it hasn't had a good year. This is the year after (2025).

To be honest, Altcoin are demonstrating this very well. This doesn’t feel like a true bull run yet.

3. Ignoring Timing and Bitcoin

Even though Bitcoin has been running regardless of the 4-year cycle, look at the macro!

I am not betting that the secular or multi-year bull market will last forever! I am saying that we are not actually in a bull market yet.

If this was a true bull market and we had an ETF, Bitcoin would have been over $100,000! That’s why people are so confused as to whether this is a bull market or not. In a way it is, in a way it isn’t.

But basically, every bull market loves liquidity injection. — After media FOMO and higher numbers (BTC over $70,000 and Ethereum over $4,000), new retail joins — low interest rates — money printing presses turn on — etc.

I always say adapt. The next bull run could last longer or even shorter than the others. Don't take history as an absolute. But I would say the bull run may not even have started at the beginning because technically it hasn't really started yet in some ways.

Will it be just as powerful? Will there be diminishing returns? That remains to be seen, but we may not even have started yet, while others are speculating that we are halfway there.

~ Don’t be shocked by what some people say. Or just because this “bull run” is so-so. It’s purely because they only focus on Bitcoin, or they just joined and have limited experience.

But how to create generational wealth this time?

I know these may sound boring to you, but the 4 most important skills will surprise you.

(The most important alpha part is at the end?, you must not ignore it!)

When people think of cryptocurrency, the first thing that comes to mind is often the promise of quick, life-changing gains.

I see!

We’ve all heard the stories of the early Bitcoin adopters or lucky investors who turned $1,000 into a fortune seemingly overnight.

These stories are thrilling and inspiring, but they can also be misleading.

The fact is, while cryptocurrencies do have the potential to create generational wealth, it’s not as simple as buying the latest coin and waiting for the price to soar.

Intergenerational wealth (wealth that can be passed down to future generations) takes time to accumulate.

This is not a sprint, this is a marathon.

The good news is that cryptocurrency can be a great tool for reaching your financial goals faster, but it takes more than just choosing the right currency.

The real keys to achieving generational wealth in crypto are often the “unfun” but necessary aspects of investing: planning ahead, managing risk, capturing profits, and continually learning and adapting.

Technically speaking, CPI-adjusted Bitcoin has not yet surpassed its ATH!

Advance planning is the basis of everything

The first step to building generational wealth in cryptocurrency is to develop a solid financial plan.

This may not sound exciting, but it is crucial.

A good plan will outline your financial goals, investment strategy, and risk tolerance. It will also include the timeline by which you hope to achieve those goals.

Start by asking yourself: What do I hope to achieve through my cryptocurrency investing?

Do you want to fund your retirement, your children’s education, or leave a legacy for future generations?

Having a clear vision of your goals will guide your investment decisions and keep you focused during market ups and downs.

Next, consider your risk tolerance.

Cryptocurrencies are inherently risky, so it’s important to only invest what you can afford to lose.

Diversification also helps manage risk - don't put all your eggs in one basket.

While it’s tempting to go all in on the latest hot currency, spreading your investments across different assets can provide greater stability and increase your chances of long-term success.

Protecting your wealth is vital

Risk management is the cornerstone of any successful investment strategy.

In the world of cryptocurrency, where prices can fluctuate wildly in a matter of minutes, risk management becomes even more important.

One of the most effective ways to manage risk is to set clear boundaries for yourself.

Decide ahead of time how much you are willing to invest, and stick to that amount. It's easy to get caught up in the excitement of the market, but discipline is key.

If you find yourself constantly checking prices and feeling anxious about your investments, this could be a sign that you’re taking on too much risk.

Another important aspect of risk management is developing an exit strategy.

Know when to take profits and when to cut losses.

This doesn’t mean you need to sell everything at the first sign of a downturn in the economy, but having a plan can help you make rational decisions rather than emotional ones.

Create an exit strategy!

One of the biggest mistakes cryptocurrency investors make is holding on too long, waiting for the big gains that will make them rich.

While it is important to have long-term goals, it is equally important to recognize when to take profits.

Taking profits does not mean selling all your assets at once.

Instead, consider taking small profits while your investment grows. This not only locks in gains but also reduces risk.

It's easy to fall into the trap of "waiting for the moon," but the reality is that markets are cyclical. There will be ups and downs, and trying to perfectly time the market is a risky game.

Taking profits regularly can help you stay ahead even when the market fluctuates. Without cash on hand, you can't take advantage of opportunities.

Reflect, learn, adapt

Building generational wealth means more than just making money;

It's about growing as an investor. That means taking the time to reflect on your successes and failures and learn from them.

The crypto market is constantly evolving, and what worked yesterday may not work tomorrow.

Staying abreast of market trends, new technologies, and regulatory changes can help you adjust your strategy as needed. Don’t be afraid to seek out new information, whether it’s through books, podcasts, or conversations with other investors.

The more you learn, the better you will be at navigating the markets and making smart decisions.

Building generational wealth in crypto isn’t a get-rich-quick scheme. It takes time, patience, and a lot of hard work. But by focusing on the fundamentals — planning ahead, managing risk, taking profits, and constantly learning — you can set yourself up for long-term success.

???

Most importantly - stay away from these psychological traps

— "Target "X" has been programmed"

— "Diamond Hands, Never For Sale"

— “Bitcoin solves this problem/no government control”

— “These are the next 10/20/50x:”

— “I gave you X and it went to Y, now I give you Z and it will go to ..”

— “Super cycle, there will be no more bear market”

— "Never gonna get to that level"

“150,000 Bitcoins have been programmed”

These are the ones that appear the most on my feed, they are all lies, designed to deceive and ensnare as many people as possible, enslave their minds, and cults and ideologies often play a vital role in this game. Keep your mind away from illusions.

Remember, the goal isn’t just to make money, it’s to build a legacy that can be passed down to future generations. This requires a shift from short-term gains to long-term growth. It requires thinking years into the future and making consistent, smart decisions along the way.

So buckle up, stay disciplined, and prepare for the journey ahead – it will be worth it.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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