The cryptocurrency realm is filled with rags to riches stories. The volatility in the sector makes room for huge profits, but also comes with a lot of risks.
According to crypto analysis agency WatchOnChain, one trader turned $8,671 into $1.26 million in two months, with a profit of 144x. The trader issued 60 Solana (SOL) tokens on March 10, 2024 to purchase 24.8 million HAMMY tokens for $0.00035 per coin. A month later, the price of each HAMMY coin rose to $0.007, with a 20x gain. However, the trader did not sell.
Also Read: Cryptocurrency Trader Turns $9,770 Into $10 Million in One Day
On May 4, 2024, the cryptocurrency trader sold 12.8 million HAMMY tokens for 2711 SOL, worth $401,000, at $0.0313 per coin. The trader still has 12 million HAMMY tokens worth $858K, with a total profit of approximately $1.26 million.
Can you become a millionaire by investing in small cryptocurrency projects?
Thousands of new crypto projects are launched every month. However, many of these projects can be pump-and-dump systems, where the price rises for the first few days and then collapses. Developers get to work with investor funds and leave a hole in their pockets. While there are plenty of opportunities to make it big with a new cryptocurrency, there are many risks involved.
Also read: Cryptocurrency: Trader turns $110,000 into $8.7 million in 3 hours
The less risky way to make it big in the cryptocurrency sector is to hold it for the long term. For example, Bitcoin (BTC), the largest crypto asset by market capitalization, is among the best performing assets of the past 15 years. Investors who bought BTC in early 2010 made millions in profits. However, they have shown extreme patience.
Shiba Inu (SHIB) is another popular project that has increased by many millions of percent since its launch in August 2020. It takes quite a bit of skill and patience to recognize a project that has the potential to deliver results and at the same time is safe for the long term.