5 Important Things You Need to Do After You Make a Million in Cryptocurrencies

The cryptocurrency bull run is almost over and the question will be what will you do with your millions? You may be thinking about buying a Lamborghini. When you do that, you are buying a depreciating asset.

You spent years investing and trading cryptocurrencies which appreciated. Now you don’t want to spend it all on an asset that depreciates as soon as you drive off the parking lot. That would not be the best decision unless you have pocketed several million from your investment. Before you go spending your new wealth, make sure you have enough to pay your taxes. They will catch you now or later.

So you need to really think about where can you best put your money. This will not be a quick decision. Hopefully, you have spent some time thinking about this. The bull run will be very fast and furious just like the movie. It will be nonstop until the Whales start selling.

You don’t want to be left holding cryptocurrencies that will drop very fast. Trust me, it will. I was in the 2017 bull market and saw my crypto balance drop very fast.

If you plan to keep building your cryptocurrencies, then you have nothing to worry about. But you should take some profits and enjoy what you have.

Other than taking your profits, these are some other things you should consider.

Pay off your debt

Debt is the most crippling thing a person can have. Debt ranging from credit cards to school loans, car loans, and other debt can limit what you can do with your money. Basically, you are giving someone free money especially if there is an interest rate tied to the money that you owe.

As soon as you can, pay off the debt. This is bad debt that is hurting you and limiting what you can do with your money. You are basically giving free money to a stranger.

On the other hand, if the debt is making you money, then you really need to think hard. For instance, if you have a rental property, is there a tenant paying the mortgage? Then you may not want to pay off the mortgage since this debt is good debt making you money.

The renter is paying your mortgage. Plus, you get a little tax break as well.

Invest in yourself

Once you buy a toy or two for yourself, make sure you reinvest your money. You want to take the profits from your cryptocurrencies and increase what you already made.

You may want to spend money on books, videos, attend an investment seminar, or spend time talking to a few coaches.

The coaches you should talk to include an insurance agent, a financial advisor, and a tax advisor. The days of going to H and R Block are over. You need to talk to companies who handle people who have a lot of money.

This is a good time to build your network of advisors if you don’t have their contact information already.

Your network of advisors will help you. You don’t have to know everything and that is where your advisors cover the area you’re not familiar with. They stay up to date on the changing laws when it comes to money and tax laws.

Take a real vacation

Millionaires like to splurge and take a vacation. Experiences mean a lot and taking a vacation can help you at the same time.

Going on vacation also gives you time to think. Thinking about what you’ll do with a million dollars from your investment could be a great reason to go on vacation.

Whether you go on vacation with a group of friends or family, this is an experience you’ll remember. The time away from work and the ability to explore a new culture and see a different place is a memorable experience.

Vacations may sound underrated, but it is a trip you will probably remember for years.

Reinvest back into cryptocurrencies

Once the crypto market has declined a bit, you may want to get back in. Find some cryptocurrencies that you believe will have a bright future.

You may want to buy more Bitcoin or Ethereum, but then you also may want to find some cryptocurrencies that could have a big future.

Cryptocurrencies are not going away and will likely get into more hands in the future. Big companies started taking an active role and adding Bitcoin, Ethereum, and other cryptocurrencies to their balance sheet.

Though you have made millions, there is nothing to say you couldn’t increase what you already have. This may give you an opportunity to take a risk on some cryptocurrencies or even help fund a new one.

The cryptocurrency world is only in the beginning stages.

Make a charitable donation

Lastly, you want to give back. Having a million is great but having the ability to help a charitable organization is even better.

Maybe you want to donate to your local church or another charitable organization. Some of the most popular charities are not always the best charities with how they use the money. Make sure you do your research.

Give to an organization that makes you feel comfortable. Donating to a local charity in your city could give you more direct input and you can see the progress. This may even lead you to donate some of your time as well.

Final thoughts

As a millionaire, you have more time to do other things. Your life is different. The ability to see and do more things are available to you more than before.

Take the time to plan what you’ll do with your new wealth.

Warren Buffett is a billionaire, but he still lives in the same house he bought in 1958. He paid $31,500 and even after becoming a billionaire, he still lives in the same house.

You may not need to move into a bigger house but possibly make some home improvements. Spend the time to think and plan what you’ll do with your cryptocurrency money.