By Gabriel Negrin
After enduring a stormy bear market period, our prayers have been answered — Bitcoin is setting new all-time milestones amid a global pandemic.
This run has been impressive. New all-time highs are being regularly set —- an impressive feat considering that the price had dropped below $5,000 in March.
Let’s ponder this for a moment. If you had bought Bitcoin during that bleak scenario of fear, uncertainty, and doubt, you would have yielded 5X your investment today. This amounts to somewhere in the neighborhood of a 500% return on investment without the need to leverage large capital.
What’s cool is that for those of us that have been in the crypto space for awhile, our friends and family are now calling and asking how they can jump in and take advantage of this run. They’re asking, “is this the right time to enter?” And the answer is simply, “it depends.”
The History of a High Performing Asset
Let’s talk a little bit about history. In its short life, Bitcoin has been known for fairly drastic runs followed by recapitulation.
Take April 2013 when Bitcoin is over $100. Then in July 2013. Bitcoin drops to $75, losing 25% of its value. Fast forward to October 2013 when it broke the $150 mark. The next thing everyone knew was that Bitcoin rocketed to $1,000 in early December.
Then in 2014 appeared to be an exceptional year for Bitcoin… and it was, but not in the way people expected. BTC revisited the $1,000 mark in January 2014, but by the end of the year, it was in the low 300s.
2015 started even worse — Bitcoin stayed between $200-300 for the first 9 months. Then there was the bull run that brought us to 19,000 in December 2017. Are you beginning to see the trend? — a bearish market for a couple of years, followed by a new bullish run.
My point is that, had you invested in those early days of 2013, you would have multiplied your investment by at least 250X today. And as impressive as that is, I must be honest with you, the vast majority of us didn’t know what Bitcoin was at the time.
Keeping it real, we have to accept the fact that the days of doing 250X with Bitcoin are gone. Even if Bitcoin reaches 250,000 in years to come, that’s only 10X our investment if we invest today.
But that doesn’t mean you don’t have other opportunities, right?
A Market That Never Stops Giving
Thank God, Buddha, fate, or whatever you believe in for the fact that this space never ceases to give us opportunities. Ethereum is just one example of this.
After its launch, Ethereum (ETH) spent its first months hovering around a dollar as its price tag. In 2016, it spent almost the entire year in a range between $6 and $15 — an average price of $10. 2017 came, and we saw it reach unimaginable heights — up to $1,400 in January 2018.
Had you invested in the first days of ETH’s development and sold at its peak, you would have multiplied your investment by 1,400X! And that would have taken you only three years.
Here’s an even simpler example: Binance Coin (BNB).
Binance Coin was born as a transactional cryptocurrency in 2017. It was simply conceived as a method to pay fewer fees when trading in Binance. Its price when it entered the market was a mere $0.10. Ten cents! But it was useful. And its profit brought it to an all time high of $39.50 in 2019. If you had invested in July 2017, you would have multiplied your investment by 395X in two years.
One could argue that it’s impossible to know that these coins would have worked so well in the market. Or is it?
The Key to Wealth
I chose Ethereum and Binance Coin as examples for one reason—- their value exists in solving a problem. That is the main reason why they’ve performed so well and continue to be a linchpin in the market.
Like ETH and BNB, there are many other examples of tokens that solve problems. And yes, I accept that there is a luck factor involved because there are many other useful tokens that have not witnessed a similar fate. But that doesn’t mean that there aren’t investors who haven’t benefited from them. In fact many of these same investors earned large amounts by investing in tokens that today do not seem useful.
So you are probably aware of people who became wealthy in this space. And although there is a luck factor, you, my friend, can also become absurdly successful in this market.
We already know the concept of the whale. In fact, there is this kind of “follow the whale” mantra going around these days. And people often think that this means imitating what these big bag holders do. If they sell, you sell — if they buy, you buy.
But that’s not what you should follow because whales sell after dumping their bags on you. The truth is that you should follow their customs, not their movements.
Frankly the biggest habit is the one the vast majority of people don’t want to follow:
Do your own research. DYOR.
Hidden Secret Of The Whales
If you want to be fecundly wealthy, you have to do your own research.
Want to know how a whale thinks? Start researching. Check out which projects of theirs have a solid foundation. Find out what their plans are. Try to get into private sales or IDOs. These are the sort of strategies that position you for success.
Protect your capital first and then maximize your profits as much as possible. You will get a few losses, but it will all be worth it. Most importantly, be patient. You won’t get rich overnight but over time your investments will pay off handsomely.