Disclaimer: This is not a get rich quick article. There is no guarantee that you will make a lot of money trading bitcoins, you may even lose money doing so. This article is just a short study of several successful Bitcoin traders who made a lot of money through trading BTC. Consider this more as a lesson or short guide on how to trade Bitcoin and turn a profit. Finally, Bitcoin trading requires lots of patience and planning.
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Now that that’s out of the way…
Is it possible to make a lot of money from bitcoin trading?
We could share a dozen success stories especially since Bitcoin trading – actually all cryptocurrency trading – has been described as the single most significant wealth transfer opportunity of all time. How else could you describe an investment in 2013 worth $250,000 that’s now worth $55,000,000 in 2019?
Whether the world catches on quickly or not, Bitcoin trading is here to stay as long as online transactions, cloud computing, the need for secure web transactions, and efficient data storage exists. The future of global ecommerce will be affected once cryptocurrencies are adopted and integrated into our everyday lives. Coinbase is already offering a debit card that can use your crypto at any shop that accepts VISA.
But we got sidetracked. Back to making money with Bitcoin. Yes, you can actually make a fortune from trading if you have the training to properly analyze and exploit trends in Bitcoin’s global market. To prove this point we are going to examine how two BTC traders converted their little investments in Bitcoin to amass a fortune.
Let’s start our analysis with Erik Fineman. At 15-years old, he turned $1,000 investment in 2011 to $100,000 in 2013. The initial $1,000 was a gift from his grandmother and he invested all of it in Bitcoin making a huge return on his investment because of a very simple and smart investment strategy called HODL (Hold On for Dear Life). That’s right. He bought and held his Bitcoin. Notably, he bought at a good entry point, like when Bitcoin was $12 each. Then he sold them off when they were about $1,200/BTC. Not a bad ROI, I’d say!
Another successful Bitcoin trader is Peter Saddington who bought a Lamborghini with just $115. Actually he bought Bitcoin worth $115 at the rate of $2.52/BTC in 2010. By 2017, that initial investment was worth over $400,000. His strategy could be described as enter early, buy very low, and then exit early and sell very high.
How Can You Make a Fortune from Bitcoin Trading?
The examples of these two traders could arguably be sheer luck and great timing, but that can apply to any type of trading, Forex, stocks – even real estate. It runs like this; buy an asset at a good price, then exit the market when the price is X times higher than what you paid for it. In our reality, this is pretty damned difficult to do. It requires a lot of patience, planning and experience to know when to buy in or sell off and the crazy thing is that, unless the asset completely shuts down or disappears, there is no wrong answer as to how to make a fortune. Just ask the guys who bought Bitcoin in early 2017 and sold it when it nearly hit $20K.
These two examples follow this pattern;
Step 1. Enter the Market Early
Besides being lucky to buy low, at what point is it profitable to buy BTC?
The market will indicate that there are more sellers than buyers. At this point, the people with strong stomachs are buying with Bitcoin is on the way down. They’re scooping up the deals and holding for a moon shot. Keep your eyes open for market trends and sentiment.
Step 2. Exit the Market Early
The same applies to selling except now we change the conditions. When there are more buyers chasing available BTC, and you’re one of the people HODLing, the demand will help increase the price. Now might be a great time to exit the market because those pesky trends can turn in an instant when buyers start getting nervous.
Lessons learn from these two examples; Bitcoin isn’t really for day traders but really good for long-time holders. According to Coinbase, the average hold time for Bitcoin is approximately 88 days. That’s on their exchange. In reality, if you can hold onto your BTC for at least two years, you will likely see huge gains. That’s what Fineman and Saddington did! Lightning can strike twice. Be vigilant and keep those Lambo dreams alive.
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