How to Make a 1900% Profit
Short answer: you can’t, but…
Disclaimer
It’s important to note that cryptocurrency markets can be highly volatile and investing in them can be risky. Any investment decision should be made after conducting thorough research and analysis, and considering your own financial goals and risk tolerance.
That being said, let’s take a look at the potential gains from buying the top 100 cryptocurrencies during a bear market and selling them during a bull market.
History
During the bear market of 2018, the total market capitalization of cryptocurrencies dropped from a peak of around $830 billion in January 2018 to a low of around $130 billion in December 2018. This represented a decrease of around 84%. During the subsequent bull market, which began in early 2019, the market capitalization of cryptocurrencies increased significantly, reaching a peak of around $2.5 trillion in May 2021.
If you had bought the top 100 cryptocurrencies in January 2018 and sold them in May 2021, with the perfect entry and exit and the perfect amount of each coin, you were looking at around 19x. Meaning that investing just $50–60k in 2018 would make you a millionaire. However, in reality, the actual gains would depend on the specific cryptocurrencies you have invested in, and the timing of your trades.
It’s also worth noting that during the bear market of 2018, many cryptocurrencies experienced significant declines in value, and some even became worthless. Therefore, investing in the top 100 cryptocurrencies during a bear market is not a guaranteed way to make a profit.
Today
As of February 25, 2023, the total market capitalization of cryptocurrencies is around $1 trillion. At this current valuation, it is impossible to make 20x.
If the current positive momentum in the cryptocurrency market continues, we could see the total market capitalization of cryptocurrencies increases further, potentially reaching $1.5–2 trillion or higher in the short to medium term.
On the other hand, if there is a significant shift in market sentiment or negative news that affects the broader financial markets, we could see the total market capitalization of cryptocurrencies decreases to $500 billion or lower.
And the lower we go, the more profit you and I can make. Until then, we need to find hidden crypto gems that can alone make 100x gains. Sadly, by just buying the first 100 cryptos, that is no longer possible.
Do you know about any hidden crypto gems?
Conclusion
In summary, while investing in the top 100 cryptocurrencies during a bear market and selling them during a bull market can potentially lead to significant gains, it is important to do thorough research and analysis and consider the risks involved.