How I made Thousands of Dollars from Bitcoin.
Bitcoin, LiteCoin, Etherum, etc…
There are several different types of crytpo-currencies and blockchains around the web nowadays. And while Bitcoin is the most popular one due to its massive growth, there are many things that I learned from buying Bitcoin.
Unlike many of the early buyers that saw their investment (asset value) grow from $100 to as much as $16,000, I made my income from the knowledge I acquired.
You see, when I first bought into the concept of Bitcoin, the price had already reached $1000 per “coin”. For me, that was too high and unstable at the time, and mostly because I had no idea what any of those things meant.
If anyone would have asked me two years ago what it meant for the “coin” to be unstable, or volatile, it correcting, I would not know what you meant. But that is not the same today.
Unfortunately, I sold my fraction of a coin at the first sign of gain, but looking back at it, I did the right thing because I had no idea what I was doing. But buying that coin lead to the events changed that my life for the best.
It started with an “investment” of $500, which got me roughly 0.456 of the coin at the time (which would be about $7,200 today at a value of $16,000 per coin). That small investment of $500 ended bringing a much larger return than what it would be worth today.
After buying my asset from Coinbase.com, I started to read more about it. Where it came from. What I could do with it, and more. I learned as much as I could about Bitcoin, and that lead to learning about blockchains, and the other forms of Cryptocurrencies. Etherum, Litecoin, MIOTA, and even the start-up currencies that entered the market as a joke, such as JesusCoin, and TrumpCoin.
However, as I started to read more about these other forms of currency, the curiosity and perhaps the false sense of hope that these too would skyrocket like Bitcoin got the best of me. And so I decided to buy into them, but these coins could not be bought with USD currency. You had to trade your Bitcoin in exchange of their currency. And so I traded my coin for a few thousand of these new coins.(remember, I was inept in the concepts at this stage of my new career).
In order to trade your Bitcoin (BTC) for the other coins, I had to use a different website. I read about it by searching the depths of Reddit, until I found a thread where people suggested using Binance.com to trade my coins for other type of coins.
I transferred my coins from Coinbase to Binance, and at this is where my career changed for the best.
No, I didn’t get lucky with the coins I bought. I purchased roughly 180 coins with the 0.456 I had, and by the end of the week, the value of BTC had gone up, and the value of coin I bought went down by over %50 because the hype had ended. People weren’t trading these coins any longer for whatever reason, and the volume had gone from 20,000 to no more than 8,000! The market had corrected on me, and at the time, I was unaware of what any of those things meant.
I jumped into a pool of sharks, and not only did I have meat on me, I also didn’t know how to swim. Many would have given up at this point. After all, my $700~ were now worth about $200. A $500 loss, but a marginal loss of $300, compared to what I started with. And to me, $300 was a lot of money. That was almost as much as to what I made in a week working 40 hours. I was furious, but most importantly, curious.
I asked myself what went wrong. What I could have done to mitigate the risk. How come I did not sell at the first signs of regression, and well, to each question, I searched for an answer. I spent the next few weeks reading about how others would buy the coins when they were cheap, and they would sell it when they were high. But many wouldn’t wait until it hit a new record. That would be foolish. The greedy always loses. The greedy gets slaughtered. Pigs get slaughtered.
Without even knowing, I had acquired the terminology and knowledge that is used in today’s world of stock trading. Because as it turns out, coin trading is pretty much the exact same as trading stocks, minus several regulations.
People were trading these coins based on volume, value, and analysts. These people were day traders, but with digital coins that acted just as stocks.
So, why trade stocks when digital coins can give you similar, if not bigger returns for your investment? Well, the answer falls down to the regulations. The digital world isn’t regulated the same way as Wall-Steet. On the internet, you could day trade all day and all night. The market doesn’t open or close. You could making a profit over night and fall asleep, only to wake up to a big correction because people in other markets (different countries and timezones) pumped and sold their coins quickly, and by doing that, creating a seller market. Where the fear of losing created a chain reaction, and causing people to sell their coins without control. Does this sound familiar? Unfortunately, in a market that isn’t regulated this is possible, and has happened several times.
In the real market, situations like those are averted because of regulations. So why was I trading in a market where anything and everything was possible? Sure, the risk of becoming mega wealthy over night was there, but so was the risk of losing everything.
And yes, the same can be said with Wall-Street, but the difference is that on the real market, every decision I make can be mitigated. Is not just a risk. It’s a controlled risk, and while I have no control over how much I can earn, I have more control over how much I can lose.
And that’s how my day trading career began. And don’t get me wrong, I didn’t become wealthy over night, and as we speak, I’m still not a millionaire, but I now make a living of day trading on a secure market. A market where I know my investments are backed up by companies, their values, assets, and federally protected, in case my bank somehow loses my earnings.
In as little as 3 hours a day, I can make (or lose) the exact same amount I was making working 40 hours a week. Buying Bitcoin did make me wealthy, just not in the same way many people assume it did. I did not make thousands by holding into it, but instead, I learned to day trade. You know what they say, give a man fish, or teach him to fish.
Many of these bitcoin millionaires have already ended up on the news stating they lost or spend their money, and are back on working 40 hours, but not me. I will continue fishing, and while my fish may not be as big as their, I’m constantly catching. Sooner or later, all my small fish will weight as much as theirs.