Can you be a millionaire from crypto?
Over a long enough period of time, even a relatively small upfront investment could turn into $1 million or more. And, indeed, according to Henley & Partners' Crypto Wealth Report, there are more than 40,000 Bitcoin millionaires in the world right now.
Can you get rich from investing in crypto? The truth is that you can get rich by investing in crypto, but making money in crypto is the same as making money with any type of investment.
However, what exactly is the number of crypto millionaires? In an inaugural Crypto Wealth Report, Henley & Partners sheds light on this intriguing subject, revealing that there are currently 88,200 crypto millionaires globally.
- Use an exchange to sell crypto.
- Use your broker to sell crypto.
- Go with a peer-to-peer trade.
- Cash out at a Bitcoin ATM.
- Trade one crypto for another and then cash out.
Any talk of billionaires buying Bitcoin has to start with Michael Saylor, executive chairman and co-founder of MicroStrategy (MSTR -4.66%). The billionaire started aggressively buying Bitcoin back in mid-2020, and has been continually ramping up his company's Bitcoin holdings since then.
For the third year running, Changpeng Zhao, founder and former CEO of crypto exchange Binance, is crypto's wealthiest person. Despite pleading guilty to U.S. money laundering charges in November, CZ, as he's known, is now worth an estimated $33 billion, up from $10.5 billion last year.
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.
Historically speaking, Bitcoin has had 3 halving events, and all of those have led to a bull run. This time around, multiple factors support the bullish momentum, and most likely, this is the start of a long bull run. The current positive price momentum shows good market depth.
A higher percentage of cryptocurrency investors have lost money than made it. 38% of Americans who've held a form of the currency say they've sold it for less than when they bought it, versus 28% who say they made a profit. Only 13% say they broke even.
Yes, there are a reported 40,500 Bitcoin millionaires. But there are also 1 million crypto wallets worldwide that hold at least one whole Bitcoin. Thus, just based on these figures, your chance of becoming a millionaire (even if you choose to invest $43,000 for a whole Bitcoin today) could be less than 5%.
How long will it take for Bitcoin to reach $1 million?
Known for her innovative investment approach, Cathie Wood predicts Bitcoin will surpass $1 million sooner than her previous estimate of 2030.
Any alteration to an asset's supply will add upward pressure to its price as long as demand stays constant, and by almost every account, it doesn't look like demand for Bitcoin is going anywhere. Admittedly, hitting $100,000 in 2024 might be a bit of a long shot, but it is undoubtedly in the cards.
You can avoid paying taxes on any cryptocurrency you own as an investment in the same way you avoid taxes on stock gains: Don't sell. It is cashing in your cryptocurrency that triggers a taxable event. If you mine cryptocurrency, the income from your mining activities is taxed as regular income.
As long as you hold digital assets you purchased with fiat currency without converting them into cash or other crypto, you are not required to report or pay taxes on any potential gains to the IRS.
If you dispose of cryptocurrency after more than 12 months of holding, your cryptocurrency will be taxed as long-term capital gains (0-20%). Want to estimate your crypto tax bill? Check out our free crypto tax calculator.
Cuban likes "Polygon and Injective, I'm an investor in both. DYOR." Polygon (CRYPTO: MATIC) is up 3% on the day and Injective (CRYPTO: INJ) is up 6.5%.
Up a level, there are 182 centi-millionaires, holding at least $100 million in cryptos, and there are 22 crypto billionaires. Bitcoin accounts for more than half of crypto-millionaires fortunes while 72 of the centi-millionaires and six of the crypto-billionaires made their fortunes from trading Bitcoin.
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Avalanche (AVAX)
- Polygon (MATIC)
- Cardano (ADA)
If you had bought $1,000 worth of bitcoin 10 years ago, it would have grown by 7,644% and be worth around $77,443 as of Feb.
Over a long enough period of time, even a relatively small upfront investment could turn into $1 million or more. And, indeed, according to Henley & Partners' Crypto Wealth Report, there are more than 40,000 Bitcoin millionaires in the world right now.
Which crypto will make you rich in 2025?
Crypto That Will Make You Rich in 2025
Cardano's commitment to scalability and interoperability positions it as an attractive investment option for 2025. With ongoing developments and the rollout of smart contracts, ADA's utility is expected to increase, potentially driving up its value.
As a gauge for how many Americans own crypto today, our estimates suggest as many as 93 million people may hold one or more cryptocurrencies. Men are still much more likely than women to hold crypto. However, there was a significant jump in the crypto ownership rate among women in the past year.
Crypto holdings for most individuals are relatively small—as median flows equal less than one week's worth of take-home pay—but almost 15 percent of users have net transfers of over one month's worth of pay to crypto accounts.
In reality, only 2.3% of all Bitcoin owners own 1 BTC or more (worth around $35K per Bitcoin as of November 6th, 2023).
| Coin | Market Capitalization | Current Price |
|---|---|---|
| Tron (TRX) | $10.4 Billion | $0.1192 |
| Polkadot (DOT) | $12 Billion | $8.43 |
| Cosmos (ATOM) | $4.2 Billion | $10.95 |
| Maker (MKR) | $3.6 Billion | $3,945 |
