The cryptocurrency realm is filled with rags-to-riches stories. The volatility in the sector makes room for massive gains but also comes with a lot of risks.
According to crypto analysis firm LookOnChain, one trader turned $8,671 into $1.26 million over two months, with a gain of 144X. The trader spent 60 Solana (SOL) tokens to purchase 24.8 million HAMMY tokens at $0.00035 per coin on Mar. 10, 2024. A month later, the price of each HAMMY coin rose to $0.007, with a gain of 20X. However, the trader did not sell.
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On May 4, 2024, the cryptocurrency trader sold 12.8 million HAMMY tokens for 2711 SOL, worth $401k, at $0.0313 per coin. The trader still holds 12 million HAMMY tokens worth $858K, with a total profit of about $1.26 million.
Can you become a millionaire by investing in small cryptocurrency projects?
There are thousands of new crypto projects launched every month. However, many of these projects could be pump-and-dump schemes, where the price rallies for the first few days and then crashes. Developers make a run with investor funds, leaving a hole in their pockets. Although there are plenty of opportunities to make it big with a new cryptocurrency, there is a lot of risk involved.
Also Read: Cryptocurrency: Trader Turns $110K to $8.7 Million in 3 Hours
The less risky way of making it big in the cryptocurrency sector is to hold for the long term. For example, Bitcoin (BTC), the biggest crypto asset by market cap, is among the best-performing assets in the last 15 years. Investors who purchased BTC in the early 2010s have made millions in profit. However, they have expressed extreme patience.
Shiba Inu (SHIB) is another popular project that has rallied by many million 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 haul.