I’ve been away for a while from posting on Dueet’s social media.
I’ve been going so much deeper into cryptocurrency. And let me tell you. This is the future.
And it’s not an exaggeration.
It will change the world like how internet has changed the world.
Can you imagine if you can’t find the right answer until you flip through hundreds of pages of encyclopaedia at the library or you can’t tell your friend that you’ll be late because you got a stomachache. Well, those happened to those that lived before the internet and the smartphone!
But as readers of Dueet, I’m sure you’re wondering if you can make money from here? Right?
In a word, yes. You can directly take advantage from the rise in the prices of crypto now.
Wait wait. I’m going too fast. Let’s take a step back to tell you a story.
History of My Venture into Crypto
I’ve always had an interest in crypto. It started with the hack of a crypto exchange (Mt Gox) in 2014 when I heard about Bitcoin and then in 2017 of Ethereum with the rise of its price.
Fast forward to 2021, I noticed the sudden increase in Bitcoin and Ethereum and other cryptocurrencies from January to early March 2021.
This reminded me of the spike in 2017 and then the burst in 2018.
Would it be the same?, I wondered.
A safe gauge is to look at the Fear & Greed index of Bitcoin. For those who don’t know, this measures the sentiment around Bitcoin and the hype.
But remember – It’s not a perfect science though.
Is there any issues ? Yes, likely. Optimism could mean a bubble. And bubbles burst.
But let’s keep that aside and let’s look at what you can invest in.
Investing in Crypto Coins and Which Ones?
Previously, I’ve only invested in Bitcoin and Ethereum, which are the big two crypto coins. They’re the most likely to increase due to being the most famous and easily available on all crypto exchanges.
But I’d like to venture into altcoins.
What are altcoins?
Altcoins are crypto that are not Bitcoin. And yes, technically Ethereum is an altcoin too.
Anyway, the problem with looking into altcoins is that there are hundreds of them.
Oh wait, there aren’t hundreds.
There are over nine thousand!
It’s exactly 9,267 crypto according to CoinMarketCap as at 17 April.
You must be wondering, ‘Do I need to know all the crypto?’.
Let me tell you: most people in the crypto space don’t. They’ll familiarise with the top 100 only most of the time.
‘But how about you, Dueet writer?’
Well, personally, I learned as I invested. I read about each crypto as I scrolled through them in Binance. I also watched YouTube videos by the channel Coin Bureau if they made them. (They’re one of the legit channels for crypto)
You, dear reader, must be thinking, ‘Ugh, so much work.’.
Well, crypto is not a get rich scheme. It just makes it easier to earn money due to the volatile price.
So, what else did I do before trading?
Other Things to Know Before Trading Crypto
Aside from understanding the fundamental nature of the coin, you would also need to understand trading charts, candles and all the things that come with it.
By all means, I’m not the best. I’ve gotten some readings right and I’ve gotten some readings wrong.
The best way to do it is to learn and gain experience. There is no better teacher than doing things yourself.
But as a start, I’ll share this really good channel called Rayner Teo. (This is not a sponsored link. I just think he’s really good.)
Also, you may realise that the video is about forex. That’s because the chart patterns used in crypto is the same as forex trading. The difference is crypto traders own the asset. (Thankfully. Phew.. )
So, learn from his videos and test with a small amount of your money before putting a whole lot more into crypto.
Okay, now you must be bored of reading this and are asking, ‘Just tell us how much you made!!‘
How Much This Writer Made (Or, the Real Reason You’re Reading This)
After trading in crypto for two weeks, I made… “drum roll* 20%! But then I stopped trading for almost two weeks because trading is mentally tiring. And it takes hours a day out of my schedule. After a month, I made around 30% increase.
But please note, I traded during a bull run in crypto so that made it easier.
And also, there were gains and losses along the way so this is the net of the gains minus losses.
A ‘What-if’ Scenario: What if I Had Passively Invested in Bitcoin or Ethereum?
As someone that likes passive investing in Stashaway, I wondered if I could do better by passively investing in Bitcoin or Ethereum.
Bitcoin increased around 10% since mid March to mid April. So, ok cool. I did better.
But Ethereum… Ethereum made around 30% gains from mid March til mid April.
Ugh… THE SAME PERCENTAGE!.
Theoretically, I could have just put money in Ethereum and saved almost 100 hours of research and stress. SMH
So, what’s the takeaway?
1. Trading in crypto can make you money. But it’s very volatile. Losing money is as easy as gaining money.
2. The smart money is investing on the platforms that are doing well such as Ethereum. Lower gains but less volatile.
3. I learned a lot about what can be built on blockchain and what the potential future could look like. If use case of half of the crypto goes mainstream, the future will look VERY different than it is now.
4. Lastly, if I just put my money in Bitcoin or Ethereum years ago, and just HODL (I.e. a popular meaning just invest for the long term), I would have made more money. But you know, hindsight is 20/20.