How to Become a Bitcoin Millionaire: A Step-by-Step Guide

Bitcoin Millionaire

In this guide, you will learn about how you can also become a bitcoin millionaire.

But First, the Bad News

No, you will not become a bitcoin millionaire overnight.

Unless you already have hundreds of thousands of dollars and time the market just right, you are very unlikely to become a bitcoin millionaire this year.

However, by regularly investing in bitcoin over time, you could become a bitcoin millionaire over the course of several years.

Here’s how!

Save in Bitcoin, Become a Millionaire

The strategy you can apply to build a savings pot in bitcoin that could end up being worth over a million dollars is called dollar-cost averaging (DCA).

Dollar-cost averaging (DCA) is a popular investment strategy that consists of investing a fixed amount into an asset at regular intervals.

This investment strategy decreases your risk of being affected by short-term price volatility and protects you from potentially allocating all your capital at a price peak. DCA also allows you to accumulate a large position in the asset at a lower average price over time.

Bitcoin DCA has become a highly popular bitcoin investment approach because it helps to mitigate the impact of bitcoin’s price volatility and allows anyone – even individuals with small amounts of capital – to build a potentially hefty bitcoin saving pot over time.

Becoming a Bitcoin Millionaire: Here’s the Maths

Now, let’s look at historical price data to find out how much you would have to regularly invest in bitcoin to become a bitcoin millionaire assuming that the digital currency continues to experience a similar price growth in the future.

Investing Daily

According to historical price data provided by DCAbtc.com, if you would have saved $44 in bitcoin every week for five years, you would now be a millionaire.

After five years the total amount invested would have been $80,344. If bitcoin performs similarly to how it performed in the last five years, then this amount would grow to $1,003,803 due to capital appreciation.

Investing Weekly

You can also compare with how much you would need to save and invest in bitcoin if you are to do it on a weekly basis instead of daily.

According to the data, if you would have saved $353 in bitcoin every week for five years, you would now have a bitcoin saving pot worth $1,001,047 (with an initial investment of $92,133 spread out over five years).

Investing Monthly

On a monthly basis, you would have had to invest $1,284 every month for the last five years to now be a bitcoin millionaire.

How Likely Is It That Bitcoin Will Generate The Same Returns in the Next 5 Years?

The honest truth is no one knows.

During the last five years, bitcoin experienced phenomenal growth during two bull markets. In between the two bull markets was a long bear market known as the “crypto winter.”

It’s hard to imagine that bitcoin will experience such phenomenal growth, which saw it generating a return of more than 1,241 percent in the last five years, again.

However, that would also not be impossible.

It’s unlikely that back in December 2018, anyone anticipated that bitcoin would reach a new all-time high of $63,000 within two and half years. In December 2018, the price of bitcoin was only $3,300.