At the time of this writing, bitcoin is trading at around $21,000 per coin. Not all potential investors have enough money to buy 1 BTC right away. According to CoinMetrics, only 891,148 people own a whole bitcoin. That’s only about 0.01% of the world’s population.
It’s hard to believe now, but in early 2010, anyone was paid 5 bitcoins just for filling in a captcha on the Bitcoin Faucet platform. At the time, the legendary coin had almost no value. In November 2009, 1,000 BTC was worth about $1.
Rating of crypto investors
In the crypto industry, players are divided into several categories based on the number of coins in their wallets:
- Shrimp (<1BTC);
- Crab (1-10 BTC);
- Octopus (1-50 BTC);
- Fish (50-100 BTC);
- Dolphin (100-500 BTC);
- Shark (500-1000 BTC);
- Whale (1000-5000 BTC);
- Humpback Whale (5000 > BTC).
Let’s see how one one of the crypto enthusiasts earned his first bitcoin and went from being a shrimp to being a crab.
The essence of Scott Debevic’s strategy
Author of a blog on Medium, crypto investor and passive income adept Scott Debevic has written about how he earned his first bitcoin. He is confident that this strategy will work for everyone. The key is patience and consistency. Let’s take a look at what he suggests.
The author believes that the main problem that prevents you from making the expected profits is that we, humans, are too impulsive and emotional. Fear, greed and hope for the “maybe” prevent us from investing with confidence and getting the expected returns. Debevic started investing in cryptocurrency in 2017. But, he says, if he had bought bitcoin consistently and little by little, his income could have increased almost eightfold. He regrets that he didn’t start following this strategy until mid-2020.
Since then, by investing $10 each day in bitcoins, Scott has earned 35%. By comparison, a similar strategy when investing in the Dow Jones earned him less than 6%. A tangible difference. Despite the ups and downs, bitcoin has shown steady growth over the long term. The author recommends that the cryptocurrency should be seen as a long-term investment. A similar opinion is shared by some Bloomberg analysts. They believe bitcoin will soon rеplace gold.
Debevic emphasizes that the limited supply of bitcoins is very important. They are offered in a limited quantity of 2.1 million. The fiat money supply, by contrast, is growing exponentially. The more dollars/pounds/euros/yen/yuan there are, the less you can buy for each fiat unit of money. And since bitcoin limits supply, it is protected from depreciation.
The Debewic’s method is useful for those who don’t want to trade and constantly monitor the market. All you need to do is regularly transfer your savings into BTC and earn a passive income. The result will be as follows:
- you will accumulate more BTC when prices fall;
- the value of your portfolio will increase along with the value of bitcoin.
That’s all. Sounds a bit too simple. However, according to the author, this method works.
Of course, this is not financial advice, but the point of view of a person who shares his experience. In any case, you need to do your own research. If you want to learn more about other strategies that will help you make money, you can read the article “How to invest in cryptocurrencies in the right way“.
