Many influencers claim you can become wealthy by earning small amounts every day, such as a 1% return daily. They argue that through the magic of compound interest, this can quickly grow into a significant sum. Sounds good on paper – but is this actually possible?
Cryptocurrencies and other assets are known for their volatility. It’s possible to earn a few percent in one day, but you can just as easily lose a few percent the next. Making money is straightforward on days when prices are rising, but markets often move sideways or decline. Predicting which days will be profitable is incredibly challenging.
The Reality Behind Consistent Daily Returns
Achieving consistent 1% gains every single day would be nearly miraculous. You might get lucky and hit this target a few times in a row, but maintaining it over the long term is unrealistic. Even professional trading funds and investment services rarely outperform the S&P 500 index, which simply includes stocks of the 500 largest U.S. companies without any complex strategy. The S&P 500 averages around a 10.5% annual return – that’s not even 1% per month. Yet some influencers suggest you can consistently make 1% per day?
Many of these influencers promote leverage trading to amplify returns. While leverage can increase profits, it also magnifies losses. Small price movements can lead to significant losses and even wipe out your entire position. Without a deep understanding of the risks, you can quickly deplete your capital. At that point, it’s not investing – it’s gambling on price movements.
One more thing – be wary of influencers showcasing large gains. They often highlight their best trades while ignoring losses. We’ve even seen some cases with photoshopped images – don’t fall for it.
Earning 1% daily or small amounts consistently sounds easy on paper, but there’s no shortcut to wealth – if there were, everyone would already be rich.
