Building Wealth with Crypto: Strategies for Different Budgets

There's a common misconception among those new to cryptocurrencies that trading—buying and selling tokens speculatively—is the only way to engage with the market. 

This view can mislead beginners, who often jump straight into trading without first understanding the fundamentals, such as the workings of the Bitcoin blockchain. Naturally, without the necessary skills and experience, these novices face a high risk of losing their capital.

Thankfully, some influencers are guiding newcomers by introducing alternative earning options such as:

• Ambassador programs;
• Testnets;
• Airdrops.

Typically, this content is aimed at beginners and discusses strategies for managing smaller capital amounts, up to $1,000. However, a beginner's readiness for crypto investing is not solely determined by their starting capital. Whether starting with $1,000, $10,000, or even $100,000, there are appropriate strategies for each level.

Level 1: Deposits up to $1,000

At this level, the objective is to swiftly increase your capital to between $5,000 and $10,000. Don't expect long-term gains—focus on earning within a 2–3 month timeframe. 

With active investment, your initial capital may quickly be depleted through various activities such as airdrop hunting, nodes, staking, and lending protocols. However, if you engage in activities that offer long-term returns, you might only see profits after 9–12 months. Therefore, if your deposit is under $1,000, concentrate on the following opportunities:

• Testnets: Some blockchains provide collaboration opportunities for testers before launch. This allows the project to receive valuable feedback while testnet participants can earn potential rewards. 
• Ambassador Programs: Support the growth of projects by contributing to design, editing, article writing, or meme creation, and receive compensation in return.
• Airdrops: Stay active in a project during its developmental phase. Activities can vary depending on the product type (web applications, blockchains, exchanges), but they typically include executing transactions, contributing tokens to liquidity pools, or minting NFTs.

It's advisable to participate in testnets and ambassador programs for Tier 1 projects, as these larger projects are more likely to provide meaningful rewards. Engaging with less reputable products might decrease the likelihood of your efforts being rewarded.

For airdrops, it's best to focus on Tier 2 and Tier 3 projects.

Instances such as those with LayerZero and zkSync serve as a testament to this approach; users who focused on these projects not only have yet to receive their airdrops but also might have missed out on other lucrative opportunities (like StarkNet, Wormhole, and Aevo) due to their liquidity being tied up.

Level 2: Deposits from $1,000 to $10,000

While the goal at Level 1 is scalability, at Level 2, it shifts to diversification. Users with this level of financial capability can engage in a broader array of activities, distributing their capital among both medium and high-capitalization projects.

If you're prepared to invest between $1,000 and $10,000, consider focusing on:

• Medium-Term Investing: Consider purchasing BTC, ETH, niche tokens, or even meme coins. Use analytical platforms for assessing the crypto market, on-chain analysis, and other tools.
• Token Sales: Although the profitability of ICOs has declined since 2017, investing in early-stage projects can still yield returns.
• Nodes: Participate in the blockchain's operation to earn rewards. For example, node owners in Celestia earned approximately 4500 TIA (valued at $45,000 as of April 2024).

Participate in Tier 1 projects to increase your chances of receiving airdrops. Now that your deposit allows, you can afford to wait through periods of inactivity without missing out on new opportunities for earning.

Level 3: Deposits from $10,000 to $100,000

At Level 3, focus on expansion. Avoid trying to reinvent the wheel by devising complex new ways to generate income at this tier. Users with deposits between $10,000 and $100,000 should engage in the same types of activities previously described, but on a broader scale.

For example, if you were previously running a node, participating in airdrop activities, and joining an ICO for a single project, now consider doing the same across 10–20 projects. However, at this level, the focus shifts towards addressing other, more operational challenges:

• Risk Management: Allocate less risk to low-probability events and more to those with higher likelihoods.
• Activity Management: Efficiently allocate resources, taking into account the overall market trends and the popularity of particular projects or sectors. 
• Personnel Management: Delegate parts of your operations to hired staff.

Investors at this level might even consider launching their own product, such as a service for tracking on-chain data, a crypto community platform, educational services, or a blockchain oracle. Identify a current market need and offer a viable solution.

Final Thoughts

Remember, no strategy—whether described here or found online—offers a guaranteed path to success. Use our advice as a guideline, not a rulebook. Best of luck!