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Last Updated on June 30, 2021 by Tyler Clark

Do Millionaires Trade Crypto?

We certainly are in a Bitcoin boom these days. Bitcoin has taken off and gained the interests of many retail traders and institutions alike. There’s also a lot of hype and talk about people becoming very wealthy very quickly from trading bitcoin and other Altcoins in the coin markets. The question is, are rich people who know how to get rich trading bitcoin?

Well, that’s a good question. Many of the millionaires I’ve trained over the years have traded stocks but I have yet to hear of anyone trading Bitcoin. I believe crypto is here to stay in some shape or form, the technology is just too useful. That being said, with everybody turning into a millionaire over night, why aren’t the millionaires trading bitcoin?

The Tiger Woods Effect

I think one of the main reasons the millionaires aren’t trading a lot of Bitcoin is that they’re busy with their own businesses. This is something I like to call the Tiger Woods Effect. Tiger Woods is known for practicing a lot when he’s playing golf. He has an entire routine that he follows from working on his chipping to spending time and the range, then working on his putting and possibly repeating parts of the process as the day goes on.

If we look back over the last 10-20 years, Tiger has been working on Golf. It’s just that simple. I’m all for finding new interests and investments but when we look at what Tiger has been doing, it’s mainly been Golf.

It’s no different when we look at the millionaires.

When I look back over the years at what they’ve been working on, it hasn’t changed. I agree there are some incredible trends in the world we can profit from but I ponder why the millionaires don’t ever try to take advantage. It hasn’t only been in the case of crypto. I didn’t see the millionaires go after any of the popular global business and stock market trends. Here are some possible reasons why and what they did instead.

Why a Millionaire Might Not Trade Crypto

I think there were a lot of reasons I didn’t see the millionaires getting involved in Bitcoin.

  • They tended to go for less volatile investments.
  • They were really busy with their own businesses.
  • They had much more control over investments they made in their own companies and thus better odds of success.
  •  They were better at their type of business than investing in something else.

What I did See Millionaires Investing in

See my other articles on investing habits but for now, let’s just say that the millionaires were mainly investing in their own businesses. Sounds obvious and simple but it was what they were doing and it was working. As mentioned, you have a lot of control and knowledge about an investment in your own company. Yes there are unknowns and risks with any investment but this type of investment can be less risky for sure.

Investments the millionaires made were also very straightforward. They made investments by hiring new employees, renting larger offices and buying equipment. These weren’t super exciting and intriguing investments. They also weren’t very speculative, they were more fact-based investments. There was a clear demand and the investment was to meet the demand.

What’s the Million Dollar Takeaway?

Staying focused on your plan is definitely the lesson to be learned here regardless of all the exciting opportunities in the world. Going in many different directions can have you starting over a lot.

It was kind of neat to see the millionaires really build something.

They often mention this type of story in the news where someone built their company from nothing into a huge business. This isn’t the kind of thing that happens from trying one thing and then jumping to the next hot topic. The millionaires had the focus and dedication to develop their projects over long periods of time. This allowed them to create something special. It’s a great way to approach business and I saw it succeed many times over.

If Bitcoin investing is to be your main area of focus, maybe you’ll be able to look back ten years and marvel at what you’ve built around it. Whatever you choose be it business, bitcoin or golf, know that picking a direction and sticking with it can allow you to build something special and hopefully garner some huge payoffs on your investment.

Best of Wealth,

Tyler