Successful Habits in Crypto Investing – Mike’s Story Explained
This article will be following a fellow crypto enthusiast success story but also works as a prime example of how to navigate those dangerous waters. To be successful in crypto investing you need healthy habits.
The information in this post is meant to supplement, not replace, proper cryptocurrency investing knowledge. My advice to you is to take full responsibility and know your limits.
Mike was a CS college student in 2012 when he got interested in Bitcoin. From the very beginning, he knew that this thing is going to pick up. He had that gut feeling and he was hooked. Few years before that, in 2009 crisis, Mike thought that USD is on the verge of collapse and invested everything in gold before getting into Bitcoin. And it’s not hard to see why he reconsidered his investment strategy.
Mike was an ordinary young man with who was recently out of the military. He was into self-reliance stuff and even had a multi-acre mini farm with as many as 10 people living there. Mike was and still is a common man.
I tried and gave up buying bitcoin a few times, but I stared buying in earnest soon after Coinbase showed up. I basically put $20,000 into it over the next couple years, pretty much as much as I could. My significant other thinks I am fucking nuts, really. For a couple years Bitcoin was all I would talk about. Only once the household rule basically became, buy whatever/as much as you want she finally caught on that bitcoin might actually be a real thing. – Mike (names and identifying details have been changed to protect the privacy of individuals)
The thing is that Mike could be you. He was just curious and he simply stumbled on alternative currencies like you did when you stumbled onto this article. Take small steps, start by reading this article, but take action.
Let’s see some of the crypto trades and investments that Mike has under his belt. We are going to break it down into three straightforward categories and emphasize the logic behind each move he made.
Profitable Crypto Investing
I bought 10’s of LTC at tens of cents and sold when it was at $40.
A high risk-reward investment. As you can see the initial investment was worth just a few lollipops. Mike made a wise move as there was literally no way to tell if Litecoin is going to pick up and shoot for the moon. He invested small. You don’t bet your house on a project like this, you invest step-by-step. Projects in ICO (initial coin offering) stage are extremely volatile and you should only consider investing if you really believe in them.
I bought and sold 10,000+ of ETH from about $2 all the way up, most recently cashed out (1,500+) totally at $93.
That was a major move. He literally invested everything he had into one cryptocurrency. At this point, he had a fair understanding how the crypto landscape is operating and he was able to identify winners from losers. Ethereum had an extremely innovative approach and he was able to recognize this. He had simply done his research and was able to benefit from it. He cashed out almost $140,000 and was still left with a hell of a stack. Again, a very good move, getting some of the earnings out and securing his investment.
I bought 1,000 Monero for about $0.10, then sold at $8. Did the same when it went from $12 to $25 (I thought it was going to go to $50).
Just for the reference, Monero came out after his initial investments had been proven right. He now knew what he was doing, but he still played relatively safe as at this stage, it can really go either way. The key takeaway here is the buybacks. At some point he thought $8 was the ceiling, he kept following the progress and he was able to time his buybacks. Very important to keep track on how your investments are doing. Monero currently sits around $87.
Over a year or so I bought up 1,000 dash from $2.5-$8 and ran a Master Node for about 9 month before panic selling when it hit about $20. I re-bought $25 then sold everything when it was just about to hit $100.
Panic selling can happen, and most likely will happen if you are over-invested. Keep your head cool and do not invest what you cannot afford to lose.
I really like the idea of decentralized storage so bought 10,000,000 Sia when I think it was something like 0.0029 BTC, and held for about 6-9 months, buying and selling some, then sold most recently, making a few hundred BTC.
Sia is a great project, but so far not a moon project for the investors. In my opinion, excellent investment opportunity for a long-term player.
All this while amassing more and more BTC, my first goal of course was 21, then forty something, then 100, 1,000… Btc is the gift that just keeps giving.
This a prime example of solid investing principals. You buy some, you win some. Buy some more, lose some and you take your loss. Then buy back again and win some again. It’s not a game where you go all-in from the beginning.
Mike’s FuckUps Explained
I once got “hacked” and lost 5,000 ETH and 10,000 LTC by having an image of my ETH and LCT wallets on my desktop as a PNG file. I must have had a remote thing and they got everything. It was really fucked up. I contacted the police but did not file a report, I learned that I am a total fucking idiot (my wife has literally been telling me that week to take our money out of bitcoin).
We wrote an article here about how and where to store your crypto assets. We strongly recommend you to keep your investments safe and you should really do it as soon as possible. “It’s not going to happen with me” is a phrase that I and Mike wish we hadn’t whispered to ourselves. Trust me, it will be a bitter pill to swallow…
I have tried shorting a few times and always have lost big.
Majority of the players on the market are bull-driven and the market is bullish when it’s on an upward trend. “Shorting” is a term used when a player is predicting a change in the market movement from bullish to bearish. The bear market is a condition when prices fall and you “short” a crypto when you think it’s going to fall. This is the land for experienced traders. Don’t get involved before you have read a fair amount of material about this.
Successful Crypto Investing Habits by Mike
Those tips from Mike are presented in unedited format. I completely agree with using alerts to keep yourself updated, however, I do not recommend day trading for novice players. I couldn’t agree more with the reading tip, this is where basics are formed.
every dayevery second and use multiple alerts for many coins;
Never (almost never) use margin;
Read, literally, almost all day every day;
Sell when anything goes more than 3x (unless you don’t want to);
Use the Rake method (continue to take out a % of profits every time new portfolio highs are reached).
You are probably now thinking that you are late to the party but you are not.
Bitcoin is still in a very early stage of adoption and without a doubt, you can consider yourself as an early adopter. 5 years from now Bitcoin could be worth $100,000 per one coin, or maybe $1,000,000 per coin. Nobody can predict that it will be worth that much, but give yourself a chance. Invest small, invest smart and grow in time. It’s not a matter of luck, it’s a matter of getting started.
The easiest way to start is with Coinbase (our reviewed and most trusted exchange). Get $10 of free Bitcoin when you use this link — it’s our referral link to keep us writing. Get started now!