Crypto Millionaires Are Changing How They Manage Their Money

The number of global crypto millionaires is rising sharply as the price of the underlying assets increases. What was once worth pennies is now worth hundreds of thousands of dollars, with no sign of stopping. 

But, of course, the reality under the glitz and glamor is quite different from what’s portrayed in the media. The life of a crypto millionaire is challenging to say the least, and there’s the ever-present fear that the price will crash. 

Examples of crypto owners getting into financial trouble abound. Many, fuelled by the thrills of seeing their wealth rise by over a hundred times, wrongly believed they were geniuses. Some bet the farm on new crypto-based asset classes, like NFTs, only to meet with bitter disappointment when those markets crashed. 

Others branched out into new and uncharted territory, leaving the relatively safe havens of bitcoin and Ethereum behind. Often, these new tokens would spike and then tank, leaving many without a penny to their names. 

“The numbers presented by the media tell a story of explosive growth,” according to crypto tax accountant, Chainwise CPA. “Bitcoin is responsible for an estimated 145,000 new millionaires, which continues to grow as the total market cap for the digital currency teeters on the edge of three trillion. Meanwhile, there are nearly 500 centi-millionaires who credit their success to bitcoin. These were often the people who bought in the early years and simply held onto their investments, believing one day that they would see substantial returns and make them extraordinarily wealthy.”

In addition, there are also around 36 people globally who are believed to be billionaires because of bitcoin. These individuals have seen massive growth in their assets, even during recent years when the relative performance of cryptocurrencies has been lower than previously. Most are now looking for ways to move out of crypto-based assets and into other markets to preserve their new-found wealth and diversify their income streams. 

Now, they’re learning all the financial tools they need to manage such massive piles of wealth. Some wake up in the morning, only to discover that their net worth has tripled overnight. But, at the same time, they also know that if there’s a hack or the regulations change, they could be finished. That’s why they are selling more than buying, and looking to spread the risk around.”

This shift in behavior isn’t without reason. A lot of crypto millionaires are finding themselves coming under increased scrutiny from governments that aren’t always friendly to wealthy people. Furthermore, crypto-based wealth is quite different from previous types. Historically, wealthy people got together to form the rules of society. But with crypto, that’s not the case. Often, millionaires via this route were just people who got lucky or had foresight. They didn’t necessarily have the political connections that most wealthy people rely on to protect themselves. 

Because of this, crypto millionaires are among the savviest of all wealthy people. While they didn’t create businesses to generate their money, they know how to move around and optimize for tax. You will often find bitcoin billionaires in far-flung locations across the globe, usually in tax havens that will protect their wealth and prevent overreaching governments abroad from accessing it. 

The biggest havens right now are places like UAE, Portugal and Singapore. However, many crypto professionals also move to locations that are much further out of the way with primitive banking and government surveillance. These tend to be a safer bet for protecting wealth and preventing authoritarian overreach back home. 

The biggest issue for a lot of crypto investors is capital gains tax. This can run up to 50% or more in some Western countries, slashing into financial wellbeing. Furthermore, a lot of governments are becoming more intrusive regarding cryptocurrencies. There’s now a growing desire for a lot of investors to reveal the contents of their private wallets, showing the authorities exactly what they have and precisely the amount of tax they owe. 

Previously, banks were crypto skeptics, but things are changing. Now many of the big names are trying to catch up and provide consumers with MiCA-compliant custody options. Many financial institutions are worried about the long-term viability of fiat money and want to capitalize their balance sheets with cryptocurrencies that can’t be debased and that can always be used to drum up more currency. Many now offer institutional-grade investment opportunities, plus additional services to help more people get on the crypto bandwagon and enjoy everything that it has to offer. More than $2 trillion in stablecoin trades are now being made daily as people track the currency markets with digital twins. 

Naturally, not every development in the crypto space is good for participants. Many people who make big winnings fail to account for tax-related cash flow issues. Often, they wind up selling other assets at a discount so that they can get the money they need. Furthermore, things like imposter syndrome and isolation can take their toll. People who became crypto millionaires didn’t usually do so organically, surrounded by other people, including their colleagues or community. Instead, they achieved that wealth by simply investing early and then running with it for a long time. This reality means that many crypto investors view their wealth as a proper curse and wish they had someone to manage it better. 

Chainwise CPA explains. “Becoming rich gets rid of a lot of problems, but it also creates many new ones, some of which can be hard to solve without expert help.” 

2025 remains one of the most bullish years in crypto history, though. ETFs are taking off, and more money is going into the space than ever before. It won’t be long before it overtakes gold as an asset class in the view of many, and it is driving a lot of global migration among the wealthy.