Investors who had the foresight (or the fortune) to buy some cryptocurrencies like Bitcoin in their earliest days and then held onto them are now extremely wealthy. These digital currencies have performed excessively well in the past few years, and the result is that many casual investors who timed it right and held onto their BTC ended up as millionaires.
So what are the 3 cryptocurrencies that turned $10,000 into over $500,000? Read on.
In the wake of Bitcoin's price explosion and as more digital currencies flood the market, investors are looking for the next digital asset to buy. But how does one go about finding a cryptocurrency which will take off in the future? Let us examine three cryptocurrencies that generated massive returns over the long haul and what lessons we can learn from their impressive performance.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3 Cryptocurrencies That Turned $10,000 Into Over $500,000
1. Bitcoin (BTC)
Bitcoin's journey from its inception has been a significant one. The cryptocurrency’s first price increase occurred in 2010 when the value of a single BTC jumped from around $0.0008 to $0.08. It has undergone several rallies and crashes since then to become the best-performing asset of the decade. The first such instance occurred in 2011. Bitcoin's price jumped from $1 in April of that year to a peak of $32 in June, a whopping 3,200% gain within three short months. There was a marginal improvement the following year, and the price had risen from $4.80 in May to $13.20 by August.
In early October 2013, the cryptocurrency was trading at $123.20. By December, it had spiked to $1,156.10. But it fell to around $760 three days later. Those rapid changes signalled the start of a multiyear slump in Bitcoin's price, and it touched a low of $315 at the beginning of 2015.
Satoshi Nakamoto, Bitcoin’s inventor, designed it for use as a medium for daily transactions and a way to circumvent the traditional banking infrastructure after the 2008 financial collapse. Though BTC was yet to gain mainstream traction as a currency, it became popular through a different narrative - a store of value and a hedge against inflation.
One other significant price bubble occurred in 2017. The cryptocurrency was hovering around the $1,000 price range at the beginning of that year. After a period of brief decline in the first two months, the price charted a remarkable ascent from $975.70 in March to $20,089 in December.
The 2017 hot streak also helped place Bitcoin firmly in the mainstream spotlight. Governments and economists took notice and began developing digital currencies to compete with Bitcoin. Analysts debated its value as an asset even as a slew of so-called experts and investors made extreme price forecasts.
A Milestone in Bitcoin’s Journey
Bitcoin's popularity took a turn after its 2017 bull rally. Institutional investors trickled in after the maturing of cryptocurrency markets, and regulatory agencies started crafting rules specifically for them. Though Bitcoin price remains volatile, it is now a function of various factors within the mainstream economy. It is no longer influenced by speculators looking for quick profits through momentum trades.
It was not until 2020 when the economy shut down due to the COVID-19 pandemic that Bitcoin's price burst into activity again. The cryptocurrency started the year at $7,200. The pandemic caused economic uncertainties, accelerating BTC's rise. By November, Bitcoin was trading for $18,353. The asset subsequently went on to reach its all-time high price of 64,000 in May 2021.
Overall, Bitcoin has been a very volatile asset. Despite this, there are periods when the cryptocurrency’s price changes have outpaced even their usually volatile swings, resulting in massive price bubbles. From its inception, BTC has surged by over a whopping 60,000%.
Bitcoin's solid fundamentals, first-mover advantage, and immense popularity make it a stellar investment. Buying BTC now could help you double your investment in a few years.
Check Out: 15 Reasons Why You Should Invest in Bitcoin Today
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2. Chainlink (LINK)
Chainlink has been a project to watch for years. The program first entered the market in 2014 under the name SmartContract.com. Shortly after its launch, it was renamed Chainlink to represent the platform’s core market in a better way. Today, Chainlink helps bridge the growing gap between external data sources and public blockchains in new and exciting ways.
In 2017, Chainlink hosted an ICO that was, at the time, one of the largest events to take place. The network has been in the spotlight ever since. In total, the crowdfunding event netting the platform a respectable sum of $32 million. This funding has helped Chainlink to push the boundaries of oracle reliability and security to new heights.
In 2019, Chainlink made one of its most significant partnerships to date. The firm successfully lined up a strategic partnership with Google. The agreement secured Chainlink’s protocol within the Google smart contract strategy. Investors saw this as a crucial milestone in the platform's journey. Chainlink's native token LINK is one of the hottest coins in the market.
On September 22, 2017, LINK was trading at $0.15. By the end of MAY 2019, the asset was priced at $3.44. During the pandemic, by July 2020, LINK was trading at $8.06.
On August 15, 2020, LINK caught the attention of investors as it reached $19. on February 19, the coin went on to trade at a whopping price of $34.7.
On May 8, LINK broke its previous price records to hit $48.6, marking a 32300% rise from its initial days. It is still not late to buy LINK as there is still room for growth. Investing in Chainlink now is likely to generate massive returns in the future.
Read Also: Will Chainlink Make Me Rich in 10 Years?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Compound (COMP)
COMP is the governance token of the Compound Decentralized Finance protocol. DeFi networks aim to convert traditional financial systems to decentralized versions. In this manner, users gain a share in the profits that were once only available to large financial institutions.
Compound is an algorithmic money market protocol that is built on the Ethereum blockchain. Notably, this network is credited with starting the current DeFi boom. In addition, Compound was the first platform to introduce yield farming to the market in 2020. Yield farming is similar to staking crypto in many ways.
Compound allows regular users to secure a passive income. Anyone can earn by lending out their crypto holdings. Thus, users can leverage their holdings without completely relinquishing ownership of their tokens.
Users lock their crypto into large farming pools. They receive rewards based on the amount of crypto they lock and how long they participate in the pool. Unlike staking pools, yield farming pools feature much shorter lockup periods. In addition, many offer no necessary lockup periods.
COMP is the primary governance token of the network. This unique financial instrument allows token holders and delegates to vote on important protocol decisions like new collateral types, borrowing power, and interest rate models.
Compound is a growing platform. Recently, COMP was listed on the popular centralized exchange Coinbase. Buying COMP now is highly likely to double your investment. On June 17, 2020, COMP started trading at $64.6.
On February 5, 2021, COMP saw its first significant price jump as it reached $534. It subsequently went on to hit its all-time high price of $854.4 on May 11, 2021.
The Compound asset has seen a rise of over 1222.6% since its inception. Experts believe that COMP is just getting started, making now a good time to invest in this growing ecosystem.
Don't Miss: Could Compound Be A Millionaire-Maker Coin?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Bottom Line
2021 and 2022 could be the years that many cryptocurrencies hit prime time. BTC, LINK, and COMP are the 3 cryptocurrencies that turned $10,000 into over $500,000 (if invested in their early days).
These three assets still promise significant returns in the future. That said, investors must perform due research before investing in any digital asset.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.