Multiple people have asked me if I heard of Bitcoin, if I am so IT person why I am not investing into cryptocurrency, or asked how much I earned once I told them that am I already investing, or asked if I do trading after they noticed in Checkout page that I accept crypto payments. After discussing privately with few people, I am writing this page to explain to everyone my journal of crypto trading. Page published May 2018.
Information for newbies
Today there are over 1000 cryptocurrencies. Bitcoin was the first cryptocurrency invented in 2009 and as 2018 it remains the dominant cryptocurrency. Each cryptocurrency have a limited supply of coins and the value of each coin is decided by how many people are purchasing it. CoinMarketCap.com multiply coin value with circulation supply to estimate market capitalization of each coin, the total market cap of all coins has grown from 15 billion USD in January 2017 to 830 billion USD in January 2018, and value of coins grown accordingly.
Most money sits in exchanges, and most exchanges use Bitcoin as primary currency, people buy altcoins with Bitcoin and sell altcoins to get back Bitcoin. When a coin is listed in an exchange or integrated in some product, people rush to buy it and its value rise. When something negative appears in the news, Bitcoin fall as people sell it to flat money, altcoins fall even more because people panic and sell altcoins back to Bitcoin.
Trading cryptocurrencies is like playing at casino, for someone to win, someone else need to lose, but while casinos have a house edge of 1-5%, the cryptocurrency market is rising over time so you are more likely to win than to lose.
Being a successful crypto trader means to spend significant time reading news spread on Reddit community, Twitter, watch daily YouTube live streams made by famous crypto investors, you need to invest few thousand dollars otherwise profits will not cope time spent. Focus on cryptocurrencies with low marketshare that have potential of growing in the future and stay away from those with no future development planned. Do not invest more that you can afford to lose!
My story in cryptocurrency trading
I heard first time about Bitcoin in 2013, but did not paid attention to it, in November 2013 while playing a game, other players asked me if I know what is Bitcoin, I said that is an online payment system similar with Paypal, we argued a bit because he claimed that Bitcoin does have a value and Paypal not. 2 days later I saw on TV news program how Bitcoin was invented and rose in value to over 1000 USD. This was the first time I realized that Bitcoin is not just an online payment system but an alternative currency. By the time I wanted to know more about it, it collapsed sharply. So I never wanted to hear again about this shit.
In June 2017, an online friend that I knew for 9 years, IT businessman, bring me the subject of cryptocurrency, for the first time I realized that there is not just Bitcoin, but several hundreds coins that can be traded, he said that have mined several coins and starting from May 2017 he is exchanging coins. If initially I was afraid of this, reminding 2013 Bitcoin crash, in August 2017 I decided to join the crypto trading world.
I made an account in Bittrex.com and ordered some Bitcoins via Litebit.eu where I transferred some flat money from bank and put as receiver address the Bittrex.com wallet, then on Bittrex I traded Bitcoin with other coins. Intially put only $100, but in September I added $2000.
That times Bitcoin dominance was 48%, I spread all money into several Altcoins which I traded badly, leaving me with only $1500, during October the Bitcoin rose in dominance to over 60% so if I kept money in Bitcoin without trading I would had at least $3000.
In November 2017 I had biggest profit when I bought Bitcoin Cash in stages at around 0.10-0.12 BTC when I saw it rising. Next morning I was shocked to see that Bitcoin Cash reached 0.40+ BTC thanks to Koreans trading on Bithumb and suddenly collapsed to 0.20 BTC because Bithumb website overloaded and crashed. Many people said that Bitcoin Cash will rise again and will become dominant over original Bitcoin so I did not sold it, I keep holding, and although it had another rise to 0.30 BTC, it continued to fall slowly and sold it too late.
In December 2017 I made a lot of profits when total crypto marketshare doubled pushed heavily by South Koreans and Bitcoin dominance dropped to 33%, I put money in about 30 altcoins which some of them surged 10x in value compared with Bitcoin. The coins did not rose simultaneously, so the lucky guys who had Dash and sold it after rise and immediately buying Cardano and Ripple, could have made over 20x profits. Personally I bought Ripple and Cardano and sold them after initial surge without being aware that they will continue to surge again. I made most profit with Verge which was sleeping at 50-60 satoshi in early December, when I saw it rising on 16 December I bought $300 at 175 satoshi and by 24 December it reached 1900 satoshi, I sold half at 780 on 21th and half at 1330 satoshi on 25th, having profit 7x in one week, regretting for not buying more Verge. But not all coins I bought rose, what I lost from some coins hardly coped the profit from other coins.
On 5th January 2018 total market cap reached over 800 billions and my coins valued $20.000 / 1.2 BTC (from initial investment of about $5000). That day some rumours that South Korea may ban cryptocurrencies, causing a major fall of altcoins, few days later when government confirmed that will not ban them, market started to recover so I spread my Bitcoins into several altcoins that were inflated by South Koreans and deflated by ban rumours, but this was followed by additional rumours of banning and regulations from multiple countries as well as Facebook and Google who banned ICO ads, causing marketshare to drop to 250 billions as March 2018. My money dropped from $20.000 / 1.2 BTC to $5.000 / 0.6 BTC.
Lucky guys those who sold coins at January peak for Tether (USDT) which is a cryptocurrency paired to US dollar rather than volatile by market demands, and bought back coins after they felt in value.
As April 2018, the marketshare started to rise again and altcoins surge in comparison with Bitcoin.
Someone has shared with me that is buying same coin multiple times to sell at peaks and re-buy in the dips. I tried to do the same, I bought Musicoin at 520, sold at 700, bought at 600, sold half at 800 and keep other half thinking that will rise even more but it felt down to 200 so I ended losing more than I won. In other cases I sold at all-time high thinking that will follow a dip, but actually it rose even more so I failed to fully profit from it.