These Crypto Rich list 2021 invested early and reaped benefits. In 2007, cryptocurrency was under scrutiny for becoming a potential disaster. In 2021, it is one of the hottest investments that everyone is eyeing. Back then, there was only Bitcoin and now there are more than a thousand cryptocurrencies in the market. What changed? The power and the potential it holds.
In March 2020, the U.S economy took a hit and panicked investors sold most of their risky assets. Owing to that, Bitcoin’s price fell 50% in a day and that affected the entire crypto market. In 2021, the fallen market saw the growth it deserved again and Bitcoin’s price hit its all-time high of US$60,000 with the total cryptocurrency market cap crossing the US$1.5 trillion mark.
Since then, several institutions and business leaders have acknowledged the potential of cryptocurrencies. The crypto ecosystem is evolving and these Crypto Rich list 2021 can certainly vouch for that.
Crypto Rich list 2021
Cameron Winklevoss and Tyler Winklevoss
Net worth: US$3 Billion, each
Founders of the crypto exchange Gemini, the Winklevoss twins began investing in Bitcoin in 2012. Back then, Bitcoin was trading between US$0.50 and US$5 during the first half of the year. It reached US$13.45 at the end of December. The prices seem unbelievable, right? The advantage of early investment reaped billions of dollars of benefit for the siblings.
Net worth: US$2.3 Billion
Micheal Saylor is the CEO of the renowned software firm Microstrategy. In December 2020, Saylor announced that he was buying US$1,000 worth of Bitcoin per second. This made the news for quite some time as in 2013, Saylor was varied about Bitcoins as he believed that this was going to tank just like online gambling. This impression changed when Microstrategy purchased US$245 million worth of Bitcoins between August and September of 2020.
Net worth: US$1.5 Billion
Roszak is the chairman of Bloq, a blockchain infrastructure company. His Bitcoin investment journey started in 2011. This was around the same time when the value of one Bitcoin became equal to the rate of the USD. It was soon trading at the price of US$32. His early-stage adoption made the value of his investments more than a billion dollars now.
Net worth: US$1.5 Billion
In 2014, Tim Draper bought US$18.7 million worth of Bitcoins. The Bitcoins Tim purchased were the ones the U.S Marshals confiscated from the shuttered Silk Road black market. 2014 was a great year for Bitcoin. The price rallied from US$325 to US$853 for the first time.
Net worth: US$8.7 Billion
The 29-year-old MIT graduate is the Founder of Alameda Research and FTX exchange. He is the wealthiest crypto billionaire to date. In 2020, he donated US$5 million to Joe Biden’s presidential campaign and made headlines.
Net worth: US$6.5 Billion
Brain Armstrong is the CEO and co-founder of Coinbase, one of the biggest crypto exchanges with over US$1 billion in revenue. In March this year, he disclosed that he has US$10 million portfolios in Bitcoins and altcoins.
Net worth: US$1.9 Billion
Fred Ehrsam co-founded Coinbase along with Brain Armstrong in 2012. In 2017, he left the company as the co-founder but remained a board member. With the 6% of his stake intact, it is approximately US$1.9 billion which put him on the Crypto Rich list 2021 along with his buddy. He now runs Paradigm, a crypto-focussed investment firm.
Net worth: US$1.9 Billion
Binance is one of the biggest cryptocurrency exchanges, if not the biggest. The exchange also has its own crypto, Binance Coin whose market cap is US$53 billion. Changpeng Zhao has an approximately 30% stake in the company, making him one of the wealthiest crypto persons.
Net worth: US$1.6 Billion
CoinDesk, a prominent cryptocurrency-related news site, is a part of Digital Currency Group (DCG), along with asset management firm Grayscale, which controls US$44 billion worth of Bitcoins and other crypto assets. Barry Silbert is the founder and CEO of DCG. This makes him one of the most powerful men in the cryptocurrency market.
Net worth: US$3.4 Billion
Ripple is a popular cryptocurrency that makes its way to the top cryptocurrencies list. Chris Larsen is the co-founder and chairman of Ripple. He reaped US$800 million worth of profit when his Ripple’s token XRP reached new heights. He personally holds more than 3 billion XRPs and a 17% stake in the company.
Net worth: US$2 Billion
Jed McCaleb is also the co-founder of Ripple and holds 3.4 Billion XRPs. In 2014, he left Ripple and co-founded Stellar Lumens. As a member of Team Stellar, he now owns approximately 1 billion Stellar Lumens.
What is Crypto and how does it Work?
A cryptocurrency is a decentralized payment method that you can use to trade online. However, the market is flooded with the best cryptocurrencies to invest in, from the popular Bitcoin, Ethereum, and Litecoin to the Dogecoin meme currency.
Cryptocurrency operates on a blockchain, the digital ledger of cryptocurrency transactions, ensuring that the same coin is never used twice. Transactions are processed on a blockchain network made up of thousands of machines, and in return for the efforts of these machines, owners can earn cryptocurrencies.
New coins are ‘mined’ (that is, minted or created) as computers interpret complex mathematical intricacies to define the legitimacy of a transaction on the blockchain.
While many people pay for their purchases in cryptocurrency, it is more broadly an investment form that drives entire sites that track the value of one Bitcoin.
Using exchange or bitcoin wallet apps like Crypto.com, Coinbase, Coinmarketcap, and BlockFi, users convert dollars into crypto and rely on an increase in the value of their investment, just like stocks.
The capital gains tax you pay on Bitcoin cash or other cryptocurrency income will vary depending on your income for that tax year. If you earn less than $40,000 per year, you won’t owe any taxes on crypto income. According to guidelines, income up to $441,150 is taxed at 15%, and higher income is taxed at 20%.
People love to invest in crypto because of the ease of buying, selling, and trading online.
Cryptocurrencies can gain value when large corporations announce that they will accept them as a payment method, when mining processes change, or when celebrities like Elon Musk promote certain crypto assets. It can also increase in value when demand increases and supply is limited. For example, when 21 million bitcoins are in circulation, no more mining takes place.
Cryptocurrencies can lose value if companies no longer accept them as a payment method or if many people try to sell them all at once.
Some Strategies the Crypto Rich list 2021 did, To Make Money with Cryptocurrencies
Earn extra money from your crypto investments by starting crypto lending. Cryptocurrency lending involves the participation of borrowers and lenders and agreements between them. Several crypto exchanges support crypto lending, including Nexo, SALT Lending, BlockFi, Oasis, and Celsius.
Specifically, cryptocurrency loans include contracts in which borrowers pledge their holdings of cryptocurrency as collateral, lenders accept terms and offer cash or other cryptocurrencies, and borrowers agree to pay interest to lenders.
Typically, in a cryptocurrency loan agreement, the borrower and borrower are individuals, not organizations such as banks. The bottom line is that cryptocurrencies are at the heart of loans that are used as collateral or as the primary source of borrowed value.
Thus, lenders can borrow crypto assets or holdings and benefit from interest payments in the form of additional crypto assets. Of course, this is not without risks, and finding platforms that connect potential borrowers and lenders can take some time. But again, if you are looking for a way to make your cryptocurrency work and earn extra money, lending it is one of the possible ways worth exploring.
Traditional Buy and Hold
The method of making money from crypto is preferable for people who are ready to take risks. It means getting crypto assets of your choice from a crypto exchange and purchasing more when prices drop – traditionally called “Buying the dip”.
After months or years, at a significant overall profit, the asset might be sold compared to the purchased price.
Well-established crypto coins like Bitcoin, Ethereum, and Litecoin rise and fall daily, but if we look at the chart, we find these coins have maintained an upward trend across the year. New coins like Chia are more likely to debut at a higher price due to the hype. Later, it loses value and requires a long time to recover. Sometimes they are likely to disappear if there are not enough buyers in the market or the utility of the function performed is insufficient.
It is vital to read the whitepaper for that coin before deciding which cryptocurrency to use as a long-term investment. It will give you a fair idea of the origins and purpose that it serves and provides enough data to allow it to stand the test of time.
Investing is a long-term venture based on a buy-and-hold strategy, but trading is utilizing short-term opportunities. The crypto market is unpredictable. In simple terms, prices of assets can rise or fall in price dramatically over a short span.
You require proper technical and analytical skills to be a successful trader. You will need to analyze the market chart of the performance of the listed assets. So, you can make an accurate prediction of the price rise and fall.
While trading crypto, you can buy or sell, depending on whether you expect the asset’s price to rise or fall. This means you can make a profit whether the price goes up or down.
Of all the ways to get free cryptocurrency, airdrops offer the highest risk. It’s more than you think worthwhile for most investors. Developers perform airdrops when they want support for new cryptocurrencies. In a nutshell, they give the free coin to try to adopt.
You can check on the Internet when the airdrop project is in progress. They are often promoted by users on the company’s website, social media, and other crypto news platforms.
It is crucial to be careful with any new crypto project. Fake Airdrop and ICO (Initial Coin Offering) are common scams used by hackers. In reality, many coins issued in the form of air bubbles are not very valuable investment stores. Experts recommend sticking with the more well-known cryptocurrencies, Bitcoin and Ethereum, especially for newbies. If you follow these recommendations, switch to airdrops.
All cryptocurrencies obtained through airdrops are also taxable income. According to the IRS, you must report based on the fair market value of the date of registration on the distributed ledger (in most cases when receiving airdrops from digital wallets).
Mining is an important part of the Proof of Work (PoW) consensus mechanism and is one of the oldest ways to earn money with cryptocurrencies. This is the process of validating transactions and securing a PoW network. To perform these functions, miners receive new coins in the form of block rewards. In the early days of Bitcoin, mining was possible on a desktop computer, but today, specialized mining hardware is required.
When it comes to network maintenance, starting a master node is also profitable. A master node is a wallet that hosts a copy of the entire network.
These two methods require a substantial amount of initial and ongoing investment backed by technical expertise.
Conclusion: Crypto Rich list 2021 Analyzed Market Charts before Getting into it
Well, after reading this article you must have got an idea about how to make money with cryptocurrency. To make a safe investment and to gain a profit you must research before investing. Twitter is the best source of information to rely on for the latest updates about the crypto industry, for instance, CyrptoMinati Capital recently tweeted about their opinion on the investment in the sandbox.
It is vital to know the crypto before investing. Crypto Rich list 2021 did as well. You should thoroughly study the ups and downs of the market. One thing you must ensure, have your wallet ready before the journey starts.
Make sure that you make all your strategies before investing. Picking up cryptocurrency is a crucial task that requires all the research and details.
Before picking up the crypto, make sure you watch out for its future in the market. Long-term and short-term are a part of the study. Thus, it sums up to doing thorough research and watching the past and the present performance of the cryptocurrency you are willing to trade.
Why Bitcoin Cloud Mining?
The Bitcoin network was introduced to the world in 2009 by an unknown individual or group called Satoshi Nakamoto. In 2021, there are more than 10,000 different projects in the field of cryptocurrencies. Each of them has its role in building the future of money.
The market value of cryptocurrencies reached $ 1 trillion for the first time in January 2021. It passed $ 2.5 trillion less than three months later. It shows that this market is one of the growing markets in the favor of its investors.
Bitcoin Cloud Mining is the process by which you participate in a mining pool to a cloud miner website and purchase a certain amount of hash power. In this pool, the profit will distribute equally among all participants who have participated in the mining pool. It will happen based on hash power. The cloud miner platform allows you to mine your Bitcoin without installing any hardware and at no extra cost. Minerland, the best crypto cloud mining service, helps you invest in Bitcoin easily and with low risk.