Wealth accumulation is like a snowball; the key is to find enough wet snow and a long enough slope.
"Teacher, I only have 100,000 in capital and want to earn 1,000,000 in the cryptocurrency world. Is it possible? How long will it take?" This is the question I get asked the most. Today, I will calculate this based on my three years of practical experience and share a few realistic and feasible paths.
First, the conclusion: it's possible, but don't expect to get rich overnight.
Most people initially fantasize about finding a skyrocketing coin and getting rich quickly. But the reality is that those who ultimately achieve their goals often rely not on a single massive gain, but on multiple steady increases: 100,000 doubles to 200,000, then doubles to 400,000, and then to 800,000. After three doublings, they are close to the million target.
1. Core Formula: Return = Principal × Volatility × Time
There is a basic formula for cryptocurrency returns: Return = Principal × Volatility × Time.
Taking 100,000 yuan as an example, if the annual yield reaches 100%, it will become 200,000 yuan after one year. Many investors try to accelerate returns by increasing volatility, such as chasing the price fluctuations of altcoins or using high leverage to amplify gains and losses.
Even if the coin price rises by only 5%, if you use 10x leverage, you can theoretically achieve a 50% return. However, this type of operation carries extremely high risks and can easily lead to significant losses.
If you insist on only investing in spot assets and do not rely on leverage or highly speculative coins, then achieving your goals mainly depends on two strategies: First, select potentially promising small and medium-sized projects to gain higher returns; second, extend the investment cycle and gradually accumulate wealth by leveraging the long-term growth of the market.
2. The 'Dumb Method' I Personally Verified: Diversification Management
I have used this set of strategies for 3 years, and the core consists of 5 sentences that even elementary school students can understand:
Divide the principal into 5 parts, moving only 1 part at a time: For example, if you have 100,000 yuan, divide it into 5 bullet packages of 20,000 yuan each. First use 20,000 yuan to buy coins, and resolutely do not touch the remaining 4 parts, keeping them for averaging down and emergencies.
Buy on every 10% drop: Suppose the coin you bought drops from 10 yuan to 9 yuan (a drop of 10%), buy again with a bullet package worth 20,000 yuan. Your average cost becomes 9.5 yuan, which is 5% lower than those who go all in.
Sell a portion after a 10% rise: If the coin price rises from 10 yuan to 11 yuan (an increase of 10%), decisively sell half of your position (equivalent to recovering 20,000 yuan of principal + 2,000 yuan of profit) and hold onto the rest.
Repeat the process until the bullets are gone: buying on every dip and selling on every rise essentially uses the strategy of 'entering in batches' to dilute risk and 'taking profit when it’s good' to lock in gains.
Only choose mainstream coins and refuse to gamble on dog coins: Bitcoin and Ethereum, which are in the top 10 by market cap, can at least survive through 3 cycles of bull and bear markets. Don't touch those low-quality coins with names containing X or Z; their endpoint is likely to be zero.
Key Logic: Use diversification to keep single losses within 20% (maximum loss per investment is 20% of total capital) and let profits grow like a snowball.
This strategy has 3 'counterintuitive' truths: Don't complain about slow earnings, be happier when the drop is more severe, and refuse to try to time the market perfectly.
3. Path Selection for Different Risk Tolerances
Based on your risk tolerance and time investment, there are roughly four paths you can choose:
1. The Hoarder Type - 'Old Monk in Meditation' style (Time: 3-5 years)
Strategy: At the bottom of a bear market, buy top projects you firmly believe in after deep research (such as BTC, ETH), then uninstall the app and wait for the next bull market peak.
Bitcoin rose more than 20 times from its low to high in the last bull market (2020-2021). Capturing an outstanding altcoin to achieve a 10x increase during a bull market is possible.
2. The Cycle Type - 'Precise Sniping' style (Time: 1-2 years)
Strategy: Do not blindly hoard coins, but deeply research industry trends and layout before a specific race explodes.
This requires strong industry research capabilities, channels for information acquisition, and sensitivity to market sentiment. You need to transform yourself into a half-industry analyst, which is extremely challenging but offers higher returns.
3. The Technical Type - 'High-Frequency Guerrilla' style (Time: 6-12 months)
Strategy: Accumulate small profits through swing trading, seizing openings, and participating in the primary market.
This is the biggest trap. 99% of short-term traders cannot achieve stable profits and end up being harvested as 'fuel'. You think you are the hunter, but in reality, you are the prey.
4. The Gambler Type - 'One Thought in Heaven, One Thought in Hell' style
Strategy: High-leverage contracts and All In on low-quality Meme coins. This is not investing; it's gambling. This path leads to 1 million, with 999,999 accounts potentially going to zero.
4. A Must-Read Guide for Beginners
Don't use leverage: The premise of a diversified investment strategy is to use spare money for investment. Using leverage can turn a 10% drop into a liquidation, effectively resulting in a game over.
Set physical stop-loss: Cut losses if each bullet package loses 20%, don't fall in love with junk coins.
Look at the market less and operate less: 99% of people who stare at the market for over an hour a day cannot help but buy and sell randomly. It is recommended to set a fixed time each week to review operations.
Maintain a frugal lifestyle: As long as you think about making money, consumerism will basically have nothing to do with you. All your time should be spent on making and saving money. The only expenses should be for learning skills and basic living costs.
5. My Final Advice
For most people, the most realistic path is to combine hoarding coins and cycle strategy: use 80% of your funds (80,000) to execute the hoarding strategy as your 'ballast stone'; use 20% of your funds (20,000) to attempt periodic race layouts as your 'offensive spear'.
This may require 2-3 years of patience, but this is the method most likely to allow you to leave the table with profits.
The most counterintuitive truth in the cryptocurrency world is: those who make big money are often doing the 'dumbest' things - diversifying, dollar-cost averaging, and patiently waiting. Those who chase hot topics and play contracts end up either paying transaction fees to exchanges or becoming fuel for the market makers.
If you want to give it a try, it's recommended to first practice with 1,000 yuan, turning 'buying on a 10% dip and selling on a 10% rise' into muscle memory. Remember: surviving to the next bull market is more important than any high-difficulty operation.
Those who truly accumulate wealth in the cryptocurrency world understand one principle: slow is fast, and less is more. Every rational decision you make is a responsibility for future wealth.
The bull market will eventually come, but the prerequisite is that you are still at the table.
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