My Crypto Story: $600 Turned To $15,000 in 2 Months
I bought 4 BTC last year after I read a book about Janet Yellen investing a couple million into blockchain tech. I coded a Bitcoin faucet called “BittyMe” the following month and ran it successfully and it became the most visited faucet on the internet, getting 80,000 visits per day. It ended up being one of the most visited sites ever in Russia. I was kind of in shock and I didn’t know much about selling websites at the time so I sold it for only $2,000 after like 2 weeks of revenue. Today that site would’ve been worth $100,000+, without taking into consideration the commission which would’ve been in Bitcoin. It was stupid, but 2 grand back then was a lot for me. Through that though I kept looking at prices and I noticed the literal same pattern kept happening over and over again in the market. I think as a whole you have to grow in terms of knowledge with money. You do that by taking losses and learning how to capitlize on those. I took a huge loss with not realizing BittyMe’s potential, but I still had 4 BTC, which would end up being huge.
I think the cryptocurrency market is a way for people to enter new money. It’s innovative, it’s against the rules, and it let’s you put new ideas onto a decentralized market, which is how markets should be. Those attributes are what attracted me to it. Through a physical definition, it’s algorithmically solved code that holds value, which in turn allows you to act as your own bank. In other words, it’s a threat to the financial system as you know it.
I read an article about how mafia members laundered money through cryptocurrency a while back. Since that article, price has increased nearly 30 fold. Law enforcement had trouble understanding how they even did it, and to me that meant it was powerful, and therefore was feared. With that in mind, cryptos were either going to be banned, or reach huge heights. Luckily it didn’t get banned and has increased insane amounts since then. I took the idea that not even the police could stop this, and applied it to my portfolio. I stopped thinking of all the technicalities involved in investing and just applied my beliefs to the actions I took in managing my portfolio. Today, people hire me to manage their portfolios because of that. If you look at your portfolio as a compilation of ideas and beliefs, it becomes a lot easier to sleep at night when prices begin tanking. I’m not sure if that makes sense to people who don’t dabble in investments, but the feeling of losing thousands of dollars in a couple of minutes is a pretty awful feeling.
I opened an account on Kraken with $600 to start and I honestly just kept watching the market. I watched it for so long I got entirely comfortable with it; I became obssessed with it. I bought a 5:1 position on margin at around $2200/BTC shortly after. Margin is when you borrow money from a bank for a rate so that you can gain or lose money 5x faster. I sold at $2900, which if you do the math is around $800 profit. So I doubled my money in about a day. I’m not saying you should do that though, because I’ve seen people lose all of their money using that strategy, but if you know what you’re doing it can be a valuable tool.
I knew I couldn’t keep opening margin positions, because that’s straight gambling against the house like in poker, eventually you’re going to lose. However I just kept looking for huge flash crashes in specific cryptos and capitalizing on short selling those opportunities and then holding on the momentum it gained after. So far, every time there’s a flash crash, the cryptocurrency market has factually bounced back times two. To me that’s insane, so if you know it well it’s pretty easy to capitalize. Just by using that strategy, for me I was able to turn $600 to a safe $15k. Crypto market means no limits and a 24/7 market. Had I not been greedy, that could’ve been $50k today. However, that’s definitely not impossible to hit before 2018.
The crypto market and stock market are technically similar in the way that they have bullish and bearish phases, but other than that, stock market is a different world. That’s why you see so many stock heads come to the crypto market, and lose all of their money. Like, imagine the S&P 500 crashed 40% in a week, it’d literally be hell. Wall Street would panic, and people would lose a fortune. Inversely, the crypto market crashes 40% pretty frequently. It’s a matter of getting used to the fact that it’s so volatile and that you can profit if you know the movements correctly. The stock market is a representation of centralized corporations that run companies whereas the crypto market is completely decentralized. You’re investing in ideas in the crypto market, not the companies.
It’s new technology, like John McAfee stated, so obviously it’s going to undergo corrections. It’s not going to be a straight green line up to $100,000 per BTC. It’s a network that grows in price with the larger volume it receives. Bitcoin and cryptocurrency were never supposed to serve as all of the things it currently has today. The idea behind it was so revolutionary though that people just picked up on it; like for example, Bitcoin was never supposed to be primarily an investment option, but people treat it like it is one now. I know people that took all of their money out from traditional index funds and switched to Bitcoin this past year. People called them “idiotic”, yet they’re going to close out with four times their money. I’m not saying that it will always be like that, but it’s undoubtedly an option if you believe in technology and its integration to the financial system.
My advice is stick to factually what makes money and don’t let your emotions get in the way. If you’re confident with your strategy and mindset, then don’t listen to other people in what to do with your money. It’s hard to do, but worth it. Everytime I buy a position I’m literally entering with the mindset that I’m about to lose all of it. That’s what works for me, I work well under pressure, but that’s the complete opposite of what conservative investors are comfortable with. You’re going to find things that work for you and you’re probably going to lose a lot of money along the way. I had to lose thousands to make thousands. You have to know the feeling of losing $10,000 to know the worth of making $1,000. Find a method you’re good at and stick with it and eventually you’ll do well.