Investing in crypto

Can investing in coins make you rich ?

Yes it can. However like anything else you need to know what you are doing, manage your risk and learn when to take your profit. It is a long process and sometimes a difficult one. So yes it can but it is not get rick quick in the slightest

Crypto market is a risky market. So, be careful when you investing in this market.

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Hi @Dave3000,

That may depend on how you define “rich”. My definition is that your capital exceeds 30 times your annual expenditure, so you SHOULD never have to worry about where your income is coming from until after you die.

I do believe that investing in coins (I understand you mean crypto-currencies, not numismatic metal coins) can accelerate the road to being rich. Simply because one of them has multiplied its face value by around 10 million times. Personally, I entered the market just before a 5X year (last year). So timing was fortunate. But I wouldn’t bet the farm on crypto.

Whoa. That’s definitely one way to look at it. I did a quick calculation and realized just how poor I am lol thanks. Is this some standard other people use too? Or is this just something you’ve set for yourself?

Countless tweets and videos of this happening. Makes it seem likes it’s easy. It’s not, but completely possible. However unfortunate it is, in this case, you will need some money to make more money.

I don’t think I have ever seen it expressed in this (simple) manner. Until 20 years ago (when we arrived in the UK to educate our sons), I had already figured out on a similar basis, that I had “retired”. At the time the multiple I was using was 20X (or expenditure equal to 5% of wealth). There were two problems with my thought experiment. The first was that I forgot I had been living in a very low cost country for the past decade, and the second is that the cost of living increased four fold overnight - I had to spend four times as much every month to live in the UK than I had been spending living overseas.

So the thought experiment started all over again. About ten years ago, I moved the goalposts from 20X to 30X, consistent with revised estimates of medium term inflation and relative risk to existing investments (increased).

If you are young enough, it is a fairly simple process to contemplate. If you can’t save at least 10% of your income net of tax, you are going to be a wage slave for the rest of your life. You have a choice to accept it, or do something else. Once you get to the position of being able to demonstrate a “savings edge” in your life, you should strive to save (reinvest) 30% of your gross income. That sounds absolutely impossible to about 95% of people I have met because it’s an “all at once” concept so they give up. But I know plenty of people who can and do save 30% of their income every year. It’s a matter of priority.

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Agreed. Although I’ve seen some take this to a whole different level. Saving so much they live an uncomfortable life. There’s a balance to be made for sure, between the thought of you living way longer than 70 and dying the next day. Both of which ask how would have liked to have lived?

How long or how many years were you doing the 30% of gross income to savings method?

Another thought: perhaps once you’ve reached a certain amount, just retire overseas lol. Maybe that will help stretch the dollar (or pound for you).

Striving to do it since 1988. Managed it for first decade (living overseas) and struggled since living in the UK.