In 2016 I started researching about bitcoin and blockchain technology. After gaining proper understanding of how the technology works I became fascinated about bitcoin. This is because I believe that anything that liberalizes the exchange of values freely and instantly among peers and in a trustless way will have a massive impact on the way our society functions and organised. Convinced about the long-term potential in this new “asset class”, I decided to jump in. I quickly bought a 100$ worth of bitcoin (BTC).
Now that I have some bitcoin securely stored on my ”blockchain wallet”, I began to gather more information on how I can take advantage of this young market to achieve financial freedom. My initial plan was to buy bitcoin and simply hold it in my wallet for 2-3 years then cash out once the value of bitcoin reaches a significant milestone. But then, I noticed that the bitcoin and cryptocurrency market is extremely volatile. Price change can be more than 30% in just a few hours. I figured out that if I take an active role in my ”crypto investment”, the potential to grow my new portfolio faster is extremely huge.
With this in mind, I started learning and practicing how to trade the market volatility of bitcoin. First, I opened a trading account with Binance exchange (a popular cryptocurrency exchange based in China) and transferred my bitcoin from my blockchain wallet to my trading account after I have verified the account and secured it with a two-factor authenticator (2FA); a move that is extremely important.
Initially, I would jump in and jump out of the market trying to chase the big green candle on the chart. I will buy high thinking the price will keep going higher only to see the price plummet in the next minute and out fear of losing all my investment I will quickly sell lower than I bought. Sometimes I will make gains in one trade, then quickly lose all in another and the pattern keeps repeating. In less than 2 weeks, I have lost almost half of my initial capital as I kept on chasing the market. Despite losing some of my capital, I was determined to learn, as I keep seeing people who make substantial returns daily from the same market where I was loosing.
With my eyes fixed on my goals, I kept practicing and I decided to make some simple trading rules for myself. One of my new rules was that before I buy any coin, I should have my own objective explanation to why I believe the price of that cryptocoin will go my way.
Secondly, I develop ways to determine the OPTIMAL ENTRY AND EXIT POINTS.
Thirdly and most importantly too, I figured out ways to develop enough discipline that will allow me not to ever change my trade plans in the middle of the trade except I have some special information.
I would take my time to study the market, follow up on news about my favorite altcoin and use historical data and other indicators to determine which direction the market is headed. My overall goal is to always enter the market when the price is low and exit the market when the price is high.
Now that I got the right right strategy and the needed discipline, it became easier to manage my risk properly. I became more cautious even as I learned more
Like if it’s a reward for my improvements, I started making consistent profits on more than 70% of my trades. On a typical day I would make between 2-7%. My successes gave me more confidence to learn even more about crypto trading. I learnt risk management and money management, this improved my profits significantly to between 5-30% of my capital daily.
When you combine this kind of earnings with the power of compound interest, you will now understand why bitcoin is widely regarded as the “biggest trade of the century”. Personally, I have turned my initial investment of 100$ into 11,000$ in jus, 6 months, you too can do even better.
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Disclaimer: The contents of this article are the author’s opinion only. All examples, ideas, methods, stories, and images are for illustrative purposes only. Before trying any method or any idea, please make sure you check all the terms of service and make sure you are in compliance. Whilst the information provided comes from my personal case study of following the same information, I assume no responsibility for anything from anyone who decides to follow this.
This article does not guarantee earnings potential in any way shape or form. The sole purpose of this article is for educational and informational purpose only and not a financial advice.
Israel Martins is a cryptocurrency researcher and trader since 2016, passionate about blockchain and other emerging technologies.