Becoming a Bitcoin millionaire with little investment: is that really possible or is it a fairy tale? Stories of Bitcoin millionaires keep on circulating in the media. But is it really possible with a Bitcoin investment to become a millionaire? We have looked to see if such reports are realistic and what is behind the reports about Bitcoin millionaires. Despite all the euphoria, we do not want to forget that Bitcoin investment carries a risk. We clarify the opportunities and risks here.
- Bitcoin millionaires can be possible
- A particularly large number of Bitcoin millionaires from the early days of Bitcoin
- Bitcoin trading always harbors a risk
- crypto trading is never 100 percent promising
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If you do not become a Bitcoin millionaire, it is your own fault
This provocative statement comes from Erik Finmann, a young American who discovered Bitcoin investment for himself. How does the young man get to make such statements? Is it really true that everyone can become a Bitcoin millionaire? It all started a few years ago with a bet that Finmann made with his parents when he was twelve. If he could become a millionaire before his 18th birthday, he wouldn't have to go to college. No sooner said than done - and Finmann set out to become a millionaire. At the time, no one had believed that he would really become a Bitcoin millionaire before his 18th birthday. But he took $ 1,000 (a gift from his grandma that was intended for his future studies) and invested it in bitcoins. At that time, the coins could still be purchased for $ 12.
Bitcoin millionaire: Erik Finmann did it
His Bitcoin investment paid off, because of the rising price of Bitcoin and the rapid demand he became a Bitcoin millionaire before his 18th birthday. He is now older and has made even more money from his investment. Of course, according to his own statements, he also had to cope with many ups and downs, but his courage from back then paid off. The former student is now one of the Bitcoin millionaires and intends to remain so and expand his Bitcoin fortune even further.
Does the Bitcoin millionaire fairytale always work?
Now many potential investors are wondering whether the story of the Bitcoin millionaire always works as in the case of Erik Finmann or whether he was just lucky. He himself confirms that in his trading career he not only suffered successes, but also many failures. Despite these setbacks, he's still a fan of cryptocurrencies. Many financial experts have spoken of the Bitcoin bubble some time ago, but Finmann has a very own opinion about it.
Bitcoin has strengthened again since the low in December
That the Bitcoin hype will one day would decrease once was already evident in December 2017. The signs of this were evident in the course of the chart - long before the slump in December. The Bitcoin price steadily declined in the months before and there was a certain unrest on the market. This uncertainty among traders culminated in a rapid slump in December: the cryptocurrency fell by many percentage points within a few days. Finmann could not predict exactly on which day Bitcoin would lose so massively, but he saw the signs in advance. He then adjusted his investment and initially watched the market. Instead of frantically selling his coins (like many other investors), he continues to rely on the bitcoins he owns.
Become a Bitcoin millionaire: strategy is necessary
Finmann and other experts agree that bitcoin trading without a strategy is not very promising. Even in the worst crisis, investors should always follow their own investment strategy to the end. When the big Bitcoin crash occurred in December 2017, many traders rushed to sell their coins for fear of even greater devaluation. The result was a flood of the market with bitcoins; an even greater drop in prices followed. In the end, those who remained calm and pursued their strategy were the winners.
Finmann: Don't necessarily sell in times of crisis
Erik Finmann also demonstrated this calm and did not sell his bitcoins despite troubled times, Like many other traders, he was aware that the Bitcoin price is extremely volatile and fluctuates widely. Such fluctuations will continue to exist in the cryptocurrency in the future. Nobody really knows how long such resets last. Sometimes it can be a reset of a few days, a few weeks or even years. Bitcoin in particular has a comparatively high chance that the value of the currency will rise again after a price slide. Those who trust their coins can sell at a profit when demand increases. Finmann showed that this principle works, because he still capitalized on the supposed Bitcoin crisis in December 2017.
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Why nevertheless not all investors become Bitcoin millionaires
A Bitcoin invest per se is not a guarantee to really become a Bitcoin millionaire. Although there are always popular examples of traders who really made it, they are the exception compared to the trading volume. Why can't all investors make a name for themselves as Bitcoin millionaires? There are various reasons for this:
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Do not hope, but act strategically
You only become a Bitcoin millionaire if you are strategic with a cool head going on. Anyone who just hopes for their Bitcoin Invest will have little success. That is exactly why many investors fail. In general, investors have no influence on the price trend, but they can analyze it as best as possible and apply their own trading strategy. Those who invest completely haphazardly may be lucky and have short-term success. However, luck and hope are not reliable partners for long-term (successful) financial management.
Not only buy and manage, but also sell
From now on, many traders want to become bitcoin millionaires immediately and doggedly, To do this, they buy bitcoins whenever possible and save them in their wallet. It makes sense to always have a certain stock in your wallet, but selling some coins can also flush fresh capital into the traders' coffers. Here it is important to use short-term price increases effectively and to sell some coins for a profit. The goal for a long-term investment should be to continuously realize profits through the sale, but at the same time to expand the inventory.
Become a Bitcoin millionaire with mining?
The demand for the cryptocurrency is increasing rapidly. How about if I mine and just earn the coins myself? Certain traders already had this approach. Let's see if it's even realistic to become a millionaire with Bitcoin Mining.
A little Bitcoin Mining is a good addition to Bitcoin Investment
As the demand for the coins increases massively, more and more transactions have to be processed within a short time. This is the chance for miners to earn (additional) coins. However, traders should know that mining is very expensive. A great deal of energy and PC resources are required. For German Bitcoin miners, mining the coins can quickly become inefficient due to the comparatively high electricity costs. Here, for example, buying / renting mining services via third-party providers is recommended. However, with the mining itself, it is not possible to become a Bitcoin millionaire. The amount spent as a reward is simply too low.
Only with sufficient knowledge and strategy will investment become sustainable
Many traders are infected by the hype about Bitcoin and other cryptocurrencies and want to join immediately start trading. This trend is supported by countless reports about Bitcoin millionaires, who accumulated wealth almost without overnight investment. Here you have to differentiate whether it is fake messages or real people. In principle, every trader should first deal with the trading material and know the advantages and risks of investing with Bitcoin.
Taxing Bitcoin: What do I have to pay as a Bitcoin millionaire?
Of course, a prospective Bitcoin must also Millionaire paying taxes. However, the profit achieved with the cryptocurrency is not yet uniformly recorded for tax purposes. For investors, this means that they are in a gray area. In Germany there are different approaches to this, which differ in detail:
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Hold Bitcoin for more than a year
Whoever invests in Bitcoin holding for over a year, no cryptocurrency has to pay taxes. I beg your pardon? Yes, in Germany a minimum holding period of twelve months is considered tax-free. However, anyone who earns interest with this investment must tax it and then pay withholding tax.
Hold Bitcoin under one year
If you hold the cryptocurrency under one year, you must tax Bitcoin. The profits made from the sale are taxed at the individual tax rate. The income tax paid is multiplied by 100 and then divided by the taxable income. Private investors have an exemption limit of 600 euros / year. Anyone who emerges from their sales as a Bitcoin millionaire must therefore pay a significantly higher tax amount.
Can I tax losses from Bitcoin?
Yes, losses from the Bitcoin investment can also be claimed for tax purposes. Here investors can offset the profits from the past year or the future profits. The latter works through the loss carryforward.
Become a Bitcoin millionaire: what's the catch?
Basically, no one becomes a Bitcoin millionaire without risk. But are there any risks for investors when it comes to the opportunities and opportunities offered by Bitcoin trading? Here we have to be honest and answer the question with "yes". Possible risks include:
- Greed and the wrong decisions associated with it
- Loss of material reference
- Mental disorders
Of course, these are effects that can occur but do not necessarily go hand in hand with Bitcoin trading. But those who invest particularly ambitiously in Bitcoin run the risk of developing a certain addiction. In connection with this, the reference to the operations is often perceived as blurred. The potential profits increase the desire to earn more and more bitcoins in order to get closer to their goal.
Bitcoin millionaire only with self-control
Those who conduct bitcoin trading without self-control have a particularly high potential to act out of control. Financial experts and Bitcoin millionaires therefore advise strict self-regulation and setting limits. Only those who act strategically and have sophisticated financial management will be successful in the long run. In addition, tax aspects should not be neglected. Anyone who makes money with Bitcoin trading may have to tax the profits. To neglect this fact and to spend all the money makes little sense. There are always reports of traders who cannot meet their tax obligations and therefore have to file for bankruptcy. To avoid this, traders should regularly file a tax return and meet their payment obligations.
Conclusion: Bitcoin becoming a millionaire is possible, but...
Basically, we can say that it is theoretically possible To become a Bitcoin millionaire. There is not only fake news about traders who have become millionaires with their Bitcoin investment. Many of these reports are actually true. Anyone who has made their Bitcoin Invest in the early days of Bitcoin has participated in the rapid rise in price and growing demand. It is known that many Bitcoin millionaires emerged at that time. Even today, it is still possible to successfully invest in Bitcoin. However, such an investment is never 100 percent promising. If you apply a suitable trading strategy and invest cleverly, you can of course be successful.
But we would like to warn from pseudo-experts who offer traders apparently 100% successful strategies and supposedly turn them into Bitcoin millionaires overnight. Many such offers are simply fake and do not bring the desired success. If you are interested in how a Bitcoin millionaire managed to make his coin millions, you can read the reviews of real Bitcoin millionaires. One of them is Erik Finmann, for example. He made it into a bet with his parents and became a Bitcoin millionaire within a few years. Are you interested in Bitcoin investment? We have put together some interesting information about Bitcoin and other cryptocurrencies for you.
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