So, you bought your first Bitcoin. According to some studies, people who buy Bitcoin, purchase $3,000 worth on average. It is almost equal to one month’s salary for a general laborer in the United States. Some may buy $10,000 worth which is almost 1 BTC (August 28, 2019 price).
The minimum target for most speculators is to become a USD millionaire. If you bought $3,000 worth, you need the price to go a whopping 33,333%! Whereas a $10,000 worth of the cryptocurrency, you will need 10,000% increase in price.
The first instance is highly unlikely to happen in our lifetime because it would mean 1 BTC is $3.4 million while the $10k investment would need BTC to reach $1 million per coin. Some say this assumption is too delusional and no one can predict that far out into the future. It may never happen at all. Take note that currently the gold’s market is valued at $7.5 trillion. A $1M BTC is a $21 trillion market capitalization. So, it’s very improbable to happen.
The Best Bitcoin Price Prediction
According to Tim Draper:
$250,000 by 2022, and I’m hedging a little, maybe Q1 2023. It may be Q1 2023, but it will be $250,000 before that.
That was Tim Draper’s latest BTC price prediction. His last BTC prediction in 2014 was laughed at by many crypto traders. He famously bought lots of BTC at $600 and then it crashed below $200 (a whopping 69% loss from his purchase price).
Now this is a more realistic target for holders, but it still won’t make you a millionaire. Why? $3k worth of BTC today will just bring you $73,500 in Draper’s future. The $10k investment will bring $245,000, still a lot short from your one million dollar target.
What you really need to prepare for Tim Draper’s prediction is to acquire, accumulate or earn !
Bitcoin Margin Trading is the Key to a Million Dollars
Many crypto exchanges allow this type of trading, with margin trades allowing for holders to “borrow” Bitcoin from the exchange in order to make a trade. You can borrow twice, thrice or even 10x your BTC capital. Normally, you need $10,000 to buy 1 Bitcoin at $10,000 limit price but if you do a 10x leverage (borrow), that’s only $1,000. You buy 1 Bitcoin with 0.1 BTC by buying a 10x leveraged position. You pay only 10% Initial Margin. You can also short sell Bitcoin (profit from a crashing Bitcoin) by selling and buying (closing a position) later. The most you can lose is your margin.
You can easily turn your $3,000 into $15,000 in one trade setup. Thereby, reaching your 4 BTC goal faster. However, it is important to note that with the leverage factor you could also increase your losses exponentially - “With high leverage comes great responsibility.”
Best Platforms to Margin Trade Bitcoin
Binance is the largest and most user-friendly of all the cryptocurrency exchanges. It also has the most liquid orderbooks, meaning there is less slippage. If you decide to dump your bitcoins, it won’t go down so far from your target sell price, the same goes for buying. The site has everything, there are even tutorials for beginners, for people who have little knowledge of blockchains or even trading. I suggest you sign up here. Binance has spot (actually exchange your fiat to coins), margin and futures trading up to 100x. There is also a savings feature for your coins, which means you earn interest for parking your crypto coins there. Get 10% discount on trading fees for 30 days, if you use this link.
Furthermore, you also get some exposure to alternative cryptocurrencies like Ethereum, Cardano, Litecoin, etc. You could trade them there.
The following exchange used to be my top recommendation. But because of abnormal volatility and frequent outage during extremely high trading volumes, I’m placing it as my second recommendation. Bitcoin Mercantile Exchange or BitMEX for short is an advanced derivatives trading platform for cryptocurrencies. It serves as a trading platform for investors to interact with global cryptocurrency markets using Bitcoin as capital. The exchange focuses on derivatives trading as it offers perpetual swap contracts as well as daily and weekly futures contracts. Bitmex also has a testnet you can practice trade on. The sandbox will provide you a testnet Bitcoin address to deposit to. Get testnet bitcoins here. Note: Only through affiliate links, you can get 10% fee discount for six months, so you must register through this affiliate link.
If you don’t care about altcoins, this is the only way to make you a millionaire. Of course, before embarking on this journey, learn to trade first. Make sure you get at least 6 out of 10 trade setups correctly before trading with real BTC. Though if you still suck at trading, maybe you could try this.