Original Title: How I Built 8-Figure Wealth in Crypto ( And Aiming for 9)
Original author: @WarrenNakamotoX, cryptocurrency investor
Editor's Note: This article shares the author's experience in achieving an eight-figure wealth through cryptocurrency and aiming for a nine-figure goal. The core lies in designing a long-term compound interest investment portfolio, emphasizing discipline, patience, and realistic expectations. The author continuously outperformed Bitcoin by holding Bitcoin, borrowing funds for short-term trading, engaging in cyclical ace investments, and angel investing, while also protecting against downside risks. The key to success is focusing on one's circle of competence, avoiding the pursuit of short-term speculative profits, and enjoying the investment process, ultimately achieving steady wealth growth.
The following is the original content (for ease of reading and understanding, the original content has been edited):
What is the best thing that cryptocurrency can bring you?
= Life-changing rewards
What is the ugliest thing that cryptocurrency can take away?
= All the profits you have ever earned
I know why you are here, for the same reason as me:
= making money. The money that changes lives.
We know it's possible because we've all heard those success stories. But to be honest, you've also heard about those who have nothing in cryptocurrency and have never made a comeback.
So, the real question is: what distinguishes these two types of people?
What is the real formula for success? How to avoid "losing everything"?
This is exactly what I will elaborate on in this article.
As you know, the total market capitalization of cryptocurrencies has been increasing. I believe it will continue to grow and may even reach 1 trillion dollars one day.
· The global stock market is currently at $126 trillion,
· The global bond market is valued at $140 trillion,
· The real estate market is approximately $400 trillion,
· And the cryptocurrency is only 3.5 trillion dollars.
Bitcoin (BTC) is already one of the top five assets by market capitalization, and I am not surprised that it may become the largest asset in the future. In the next 24 months, I believe Bitcoin will surpass Microsoft, Nvidia, and Apple to become the second largest asset in the world.
But unfortunately: if the market continues to grow and you are still losing, there must be a problem. It could be that your methods are wrong, or that your strategies or skills need improvement.
Regardless, some things need to change.
The most important change, which most people get wrong, is the expectation. They see someone achieving 50x or 100x returns and jump in to chase the same profits.
I have seen too many people like this. Some have even made a lot of money at one point, feeling invincible, only to lose it all quickly. Why? Because they never established a system, lacked discipline, and did not set truly reasonable goals.
I can reach an eight-figure fortune, not because I am a genius, but because I set realistic expectations. Before entering the cryptocurrency space, I spent over a decade navigating the stock market. My goal was simple: to achieve a 40% annual compound growth rate (CAGR). After seven years of compounding, my funds multiplied tenfold. I did it, and I couldn't be prouder.
I know that for most cryptocurrency traders, hearing about a 40% annual return may sound like a failure, but at the time, it was already at the top level. The greatest investor in history, Warren Buffett, has had an average annual compound growth rate of only 19.8% since he took over Berkshire Hathaway in 1965.
19.8% makes him a legend. Sounds low, right?
But can you maintain a return of 19.8% for 60 consecutive years, every year? Through wars, market crashes, economic recessions, and chaos?
This is true strength! It's not about the fleeting huge returns, but the quiet, monotonous, and consistently beating the market returns.
In the stock market, how do you determine if your returns are good?
You might ask, why run ahead of Bitcoin? Because if you can't do that, what's the point of investing in other coins? You might as well just buy Bitcoin and lie flat.
Just a reminder, Bitcoin has increased more than 10 times in the past five years. Do you know how many people lost money during this period? A lot. If they had just bought and held onto Bitcoin, the return could have reached 1000%.
Regarding outperforming Bitcoin, for example:
· If Bitcoin performs +30% this year and you earn +40%, you are doing very well.
· If Bitcoin drops by -25% this year, and you only lose -15%, you are still very excellent.
To measure this, you need at least 5-10 years of performance to determine if you are good at it. So, as I mentioned before, this is a long-term game.
This is a game of patience, a snowball game.
So, forget about the question of "how to quickly 100x". The real question is: how to consistently outperform Bitcoin and never go to zero?
The answer is portfolio design.
· Design should be durable;
· Design for compound interest;
· The design should protect against downside risks while seizing upside opportunities.
Even if you lose, there is still a great opportunity to win in the long run. This is the philosophy behind how I build and design my portfolio.
Alright, let's talk about how to actually outperform Bitcoin.
First, make sure your portfolio is 100% held in Bitcoin. This way, you automatically match the long-term performance of Bitcoin.
Then, I will borrow, with the borrowing amount not exceeding 50% of my Bitcoin holdings. The annualized interest rate for borrowing is usually around 5%. I will use these funds to do a few things:
Short-term trading, up to 3 months
I only engage with projects that have strong fundamentals and are likely to achieve 2-3 times returns, usually those that have dropped during bear markets but still have solid products. I typically exit at 50%-100% profit.
For example, if you have followed me: $ETH, $PENGU, $ANIME, $COOKIE, $KAITO, and some that I haven't really disclosed: $HYPE, $RAY, $JUP, $SUI.
I actively accumulate during a bear market and sell after making a profit of 50%-100%. When the bull market arrives and all coins reach historic highs, I usually stop trading.
$KAITO and $HYPE are my key projects in this cycle. However, when they drop, I sometimes add to my position and make short-term trades.
Cycle King, single cycle high-confidence investment, up to 12 months
This really makes me happy. Currently, I allocate up to 10% of my funds, but before reaching eight figures, I allocated nearly 20%. Early success cases were $UNI and $CAKE, at which point I hadn't named this strategy "Cycle Ace" yet. Last year, I participated in the TGE of $HYPE (Token Generation Event), achieving a 10x return within a month. Now I hold $KAITO, which has already doubled and remains strong.
The Cycle Ace has two conditions: "Filtering" and "Timing".
The selection criteria are high-quality founders who are rapidly developing, a strong community, products that are actually being used, and projects that capture attention while still being in the early stages.
In terms of timing, I only start looking in the first year after Bitcoin halving, and exit at most two years later. This rule has not changed for now, and there may be adjustments in the future.
angel investment, up to 24 months
The only reason I created this X account is to gain better angel investment opportunities. So far, it has been effective; I have come into contact with excellent project parties through introductions from friends I know.
I am currently supporting over 15 projects. I know this is high risk and high reward, but this funding comes from lending profits, so there is no loss for me. I have indeed invested in a few bad projects, but overall the returns are still good.
With these three strategies, if I make money, I will use the profits to repay the loan and unlock my bitcoins. This way, I only play with the profits. If the profits are large enough, I will buy more when bitcoin drops, and then repeat this cycle.
What should I do if my trading and Cycle Ace performance is poor? First, your portfolio is not dead; Bitcoin is still supporting you. If Bitcoin continues to grow, you can borrow more funds to keep playing.
Your portfolio will only be doomed under the following circumstances: you borrowed 50% of the Bitcoin, all your operations went to zero, and Bitcoin plummeted by 50%. You'd have to be extremely unlucky, making every wrong move, to encounter this combination.
This is all my operations. I don't play with low market cap meme coins, I don't trade NFTs, and I don't engage in perpetual contracts because I'm not good at them. I tried to learn, but I found that this is not my field. If you are good at it, you can use Bitcoin's funds to do what you excel at. Focus on your own circle of competence; everyone has different skills.
What matters most to me is: I love my life. I design my investment portfolio in a way that ensures I can sleep soundly, enjoy each day, do what I love, and never feel stressed because of my investments.
Even when I started my Web3 journey in 2017, the goal was never to get rich quickly, but to slowly but surely accumulate wealth while enjoying the process.
In 2017, I decided to achieve a wealth of 100 million dollars by 2030. Not through luck, not through gambling, but by building a bulletproof system that compounds over time. I feel like I'm on the right track, and that's why I'm here to share everything. You don't need to follow it 100%, just pick the parts that fit your risk, life, and goals.
I share this not because I think I'm great. I am still in the learning stage, working hard every day to keep up with this fast-changing industry. I hope you can learn something from this article and find useful methods to improve the performance of your investment portfolio.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Confession of a "Landing Old Leek" in the crypto world: How did I outperform BTC and steadily achieve A8?
We know it's possible because we've all heard those success stories. But to be honest, you've also heard about those who have nothing in cryptocurrency and have never made a comeback.
So, the real question is: what distinguishes these two types of people?
What is the real formula for success? How to avoid "losing everything"?
This is exactly what I will elaborate on in this article.
As you know, the total market capitalization of cryptocurrencies has been increasing. I believe it will continue to grow and may even reach 1 trillion dollars one day.
· The global stock market is currently at $126 trillion,
· The global bond market is valued at $140 trillion,
· The real estate market is approximately $400 trillion,
· And the cryptocurrency is only 3.5 trillion dollars.
Bitcoin (BTC) is already one of the top five assets by market capitalization, and I am not surprised that it may become the largest asset in the future. In the next 24 months, I believe Bitcoin will surpass Microsoft, Nvidia, and Apple to become the second largest asset in the world.
But unfortunately: if the market continues to grow and you are still losing, there must be a problem. It could be that your methods are wrong, or that your strategies or skills need improvement.
Regardless, some things need to change.
The most important change, which most people get wrong, is the expectation. They see someone achieving 50x or 100x returns and jump in to chase the same profits.
I have seen too many people like this. Some have even made a lot of money at one point, feeling invincible, only to lose it all quickly. Why? Because they never established a system, lacked discipline, and did not set truly reasonable goals.
I can reach an eight-figure fortune, not because I am a genius, but because I set realistic expectations. Before entering the cryptocurrency space, I spent over a decade navigating the stock market. My goal was simple: to achieve a 40% annual compound growth rate (CAGR). After seven years of compounding, my funds multiplied tenfold. I did it, and I couldn't be prouder.
I know that for most cryptocurrency traders, hearing about a 40% annual return may sound like a failure, but at the time, it was already at the top level. The greatest investor in history, Warren Buffett, has had an average annual compound growth rate of only 19.8% since he took over Berkshire Hathaway in 1965.
19.8% makes him a legend. Sounds low, right?
But can you maintain a return of 19.8% for 60 consecutive years, every year? Through wars, market crashes, economic recessions, and chaos?
This is true strength! It's not about the fleeting huge returns, but the quiet, monotonous, and consistently beating the market returns.
In the stock market, how do you determine if your returns are good?
= Continuously outperform the market.
What about in cryptocurrency?
= Continuously outperforming Bitcoin's performance.
You might ask, why run ahead of Bitcoin? Because if you can't do that, what's the point of investing in other coins? You might as well just buy Bitcoin and lie flat.
Just a reminder, Bitcoin has increased more than 10 times in the past five years. Do you know how many people lost money during this period? A lot. If they had just bought and held onto Bitcoin, the return could have reached 1000%.
Regarding outperforming Bitcoin, for example:
· If Bitcoin performs +30% this year and you earn +40%, you are doing very well.
· If Bitcoin drops by -25% this year, and you only lose -15%, you are still very excellent.
To measure this, you need at least 5-10 years of performance to determine if you are good at it. So, as I mentioned before, this is a long-term game.
This is a game of patience, a snowball game.
So, forget about the question of "how to quickly 100x". The real question is: how to consistently outperform Bitcoin and never go to zero?
The answer is portfolio design.
· Design should be durable;
· Design for compound interest;
· The design should protect against downside risks while seizing upside opportunities.
Even if you lose, there is still a great opportunity to win in the long run. This is the philosophy behind how I build and design my portfolio.
Alright, let's talk about how to actually outperform Bitcoin.
First, make sure your portfolio is 100% held in Bitcoin. This way, you automatically match the long-term performance of Bitcoin.
Then, I will borrow, with the borrowing amount not exceeding 50% of my Bitcoin holdings. The annualized interest rate for borrowing is usually around 5%. I will use these funds to do a few things:
Short-term trading, up to 3 months
I only engage with projects that have strong fundamentals and are likely to achieve 2-3 times returns, usually those that have dropped during bear markets but still have solid products. I typically exit at 50%-100% profit.
For example, if you have followed me: $ETH, $PENGU, $ANIME, $COOKIE, $KAITO, and some that I haven't really disclosed: $HYPE, $RAY, $JUP, $SUI.
I actively accumulate during a bear market and sell after making a profit of 50%-100%. When the bull market arrives and all coins reach historic highs, I usually stop trading.
$KAITO and $HYPE are my key projects in this cycle. However, when they drop, I sometimes add to my position and make short-term trades.
Cycle King, single cycle high-confidence investment, up to 12 months
This really makes me happy. Currently, I allocate up to 10% of my funds, but before reaching eight figures, I allocated nearly 20%. Early success cases were $UNI and $CAKE, at which point I hadn't named this strategy "Cycle Ace" yet. Last year, I participated in the TGE of $HYPE (Token Generation Event), achieving a 10x return within a month. Now I hold $KAITO, which has already doubled and remains strong.
The Cycle Ace has two conditions: "Filtering" and "Timing".
The selection criteria are high-quality founders who are rapidly developing, a strong community, products that are actually being used, and projects that capture attention while still being in the early stages.
In terms of timing, I only start looking in the first year after Bitcoin halving, and exit at most two years later. This rule has not changed for now, and there may be adjustments in the future.
angel investment, up to 24 months
The only reason I created this X account is to gain better angel investment opportunities. So far, it has been effective; I have come into contact with excellent project parties through introductions from friends I know.
I am currently supporting over 15 projects. I know this is high risk and high reward, but this funding comes from lending profits, so there is no loss for me. I have indeed invested in a few bad projects, but overall the returns are still good.
With these three strategies, if I make money, I will use the profits to repay the loan and unlock my bitcoins. This way, I only play with the profits. If the profits are large enough, I will buy more when bitcoin drops, and then repeat this cycle.
What should I do if my trading and Cycle Ace performance is poor? First, your portfolio is not dead; Bitcoin is still supporting you. If Bitcoin continues to grow, you can borrow more funds to keep playing.
Your portfolio will only be doomed under the following circumstances: you borrowed 50% of the Bitcoin, all your operations went to zero, and Bitcoin plummeted by 50%. You'd have to be extremely unlucky, making every wrong move, to encounter this combination.
This is all my operations. I don't play with low market cap meme coins, I don't trade NFTs, and I don't engage in perpetual contracts because I'm not good at them. I tried to learn, but I found that this is not my field. If you are good at it, you can use Bitcoin's funds to do what you excel at. Focus on your own circle of competence; everyone has different skills.
What matters most to me is: I love my life. I design my investment portfolio in a way that ensures I can sleep soundly, enjoy each day, do what I love, and never feel stressed because of my investments.
Even when I started my Web3 journey in 2017, the goal was never to get rich quickly, but to slowly but surely accumulate wealth while enjoying the process.
In 2017, I decided to achieve a wealth of 100 million dollars by 2030. Not through luck, not through gambling, but by building a bulletproof system that compounds over time. I feel like I'm on the right track, and that's why I'm here to share everything. You don't need to follow it 100%, just pick the parts that fit your risk, life, and goals.
I share this not because I think I'm great. I am still in the learning stage, working hard every day to keep up with this fast-changing industry. I hope you can learn something from this article and find useful methods to improve the performance of your investment portfolio.