Investing in Crypto with little money and keeping it for in the Future is a wise thing todo rather than investing in real estate. The ROI of crypto investment is more than 10,000% in some token. I’ll explain this below
Yesterday, i made a post asking people to buy some Crypto tokens with the littlest amount of money they have and keep it for some years because of their children.
It happens that a lot of people misconstrued it to mean that one must have a complete piece of a token and buying that low of an amount will be inconsequential in the long run.
I am here to explain further, clear the doubt of newbies and expose the powers of holding crypto and also put the “i too knows” in their place.
Now,
You don’t need to have 1 Bitcoin for you to become rich through it, your don’t need to have 1 complete SOL or BNB as well.
If at Current Price, 1 BNB is $530 and 1 SOL $150
and you really want to have a piece of this for the long run.
You can buy $10 – $100 worth of each.
To make this piece very easy to understand, i will use $100– let’s imagine you buy $100 which will become N200m in the future (read till end to see my analysis).
Understand this:
Because you have 1 million pieces of a meme coin doesn’t mean someday in the future each piece will become $1 and you’ll become a millionaire 🤣.
Some things happens:
1. For a token price to move from $1 to $2 it’s marketcap needs to move 100%, i.e FLOKI is trading at $0.0002634 and it’s marketcap is $2.6B.
For Floki to do 10X which brings the price to $0.002634 (still very less than $1) the marketcap must become $26B.
Funny thing is… even if $26B is readily available for retail investors to throw anyhow, they’d rather put it in more safer projects like BTC, ETH, BNB and SOL. (this is why, these crypto’s will always become the top of all crypto almost forever). Put it that, for the short term a meme coin might perform better but on the long term, say 20year, a meme coin would be no more.
MarketCap*: Total Value of a Crypto Assets, it’s calculated by multiplying current price with circulating supply. If supply is much, the price will always be low, thats why meme coins usually have low prices (low prices like $0.0026 doesn’t mean it’s cheap, it just means the supply was extremely excess) — Understand this like your palm, please.
2. Test of Time: Meme coins can never stand the test of time. Only DOGE has been the only Memecoin to stand the test of time. You can wake up one morning and a whale or dev pulls out a large sum nuking the entire token and rendering lots of people at loss.
3. What Drives the Price?: I think this is the most important.
Memecoins even though they claim to have Utility (or would have utility) they are most times blabbing.
Two things drives the price of MemeCoins:
a. Community– the community choose to pump in their money, see the price rise up up to attract new buyers and then take profits (hence the easy fluctuations)
b. Influencers- this is why many rely on Elon Musk tweets for Doge coin to pump.
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Oh, i’m missing something,
i said let’s assume you bought each at $100. i.e for the long run you bought either SOL or BNB at $100 each
Oya bring out your calculator, it’s about to be mathematical.
Now $100 worth of BNB will give you 0.187 BNB and $100 worth of Sol will give you 0.65 SOL
You don’t have to get a complete piece to be rich as i said earlier.
I will use BNB (Binance Coin) for this Explanation.
Now, in 20 years, say BNB does 100X and BNB begins to sell at $15,900 per piece,
Where the marketcap is at 8.2T (which is even very little, because in 30years from now if BNB and Binance continues like this they will be worth more than 10T by then, even Apple is already $3T in valuation and we are in 2024 now image 2044)
Now at 100X for BNB, your $100 becomes X100 which is $10,000 after like 20 years.
Not to forget, $1 by then to naira might have been N20,000.
If we judge by how the Naira/Dollar moved within the past few years, even $1=N20,000 will be too small to imagine (yes).
Now Do, $10,000 X 20,000 = N200,000,000
That’s cool 200million naira from your $100 investment 20years ago.
Even if only Half move was experienced in 20years, you’d still have around 50m naira to 100m naira (isn’t that huge enough for a $100 investment today?)
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I hope by now, you understand how crypto works?
— Why you should go for Coins/Exchanges that can stand the test of time.
Every year, every cycle, tokens, memecoins and even solid projects close up, leaving investors at loss.
I lost thousands of dollars at BKEX (they closed up and i wasn’t aware, they didn’t send any email or reminders), i lost money too on HOTBIT because of their downtime and afterwards closed down.
Many Crypto projects and Tokens have closed down, some have literally gone untradeable e.g TTF, thousands of memecoins and a host of other projects.
With all these said,
Would you rather invest in what would stand the test of time for your kids to one day be happy that you have a piece of it? Or you prefer to just throw money around hoping to make it big immediately?
As always, May the Pump be with us
~ credit Fidelis
Photo Attached: BTC Chart of how it has moved in the last decade.
