Can You Become Rich Trading Cryptocurrencies?
You may be trading cryptocurrencies and asking yourself, can I become rich with this?
The answer is a big “YES!”
I’ve been in four booms and busts in crypto.
And so, I have a lot of experience I can share with you, including the wealth-building possibilities of trading cryptocurrencies.
I have traded over $100 million in volume over the last nine years.
So, what is the strategy? How should you approach cryptocurrency trading?
Can you make a million bucks from just $100? The reality is that it’s super hard.
Unless you’re lucky enough to jump into a crypto coin with 10,000x returns, it’s almost impossible. You’d need to be extremely lucky to find those gems. Such a return is basically a lottery ticket.
Some coins go 10x or 20x on average in a reasonable market. The whole 2022 market is almost multiplied by that number. So, it is a very lucrative market.
Even though we’re in a bear market, there are still opportunities to remit.
It’s just a matter of patience.
There is one secret that can help you go from $100 bucks to $1 million really quickly – LEVERAGE.
But here’s the trick, leverage is super dangerous as well because you need to know the right way to do it.
More than 80% of the people that trade with leverage will go broke. The percentage of losses is usually higher than 80%.
So, how do you get to the 20%?
If you’re going to use leverage, be super careful.
The advantage of using leverage is usually that you get more value for the amount you trade. If you have $100 in your account and use a 10x leverage, you can trade with $1000.
So, if a certain price goes up by 10%, the price difference is $100, meaning your initial $100 will become $200.
Instead of just gaining 10%, you’re gaining 100%. That’s the power of leverage.
BUT…it also works the other way. If you lose it, you’ll go from $100 to zero really quickly.
At the start, only use leverage when you can afford to lose small amounts. That’s how I did it. I traded when I had only $250 or $300.
I started with an insane amount of leverage. It was 25x, but it was too much.
When I traded with that amount of leverage, one mistake would mean a balance drop so low that it would be almost impossible to get back.
The high leverage was super volatile, and I had to scale down really quickly.
After I’d made $10,000 from $250, I scaled down to 10x leverage. Then I slowly scaled down to 5x, 3x, and eventually 2x.
When you have more money, you don’t want to risk losing it over some stupid mistake.
So, the lower the amount you have, the better it is to hold your higher leverage.
The higher your balance gets, the lower your leverage should be. And then, it becomes super easy.
If you make $10,000 from $100, then it’s easier to get to a million because you have this initial capital, which is easier to build up.
That’s how you do it!
But here’s the thing, you need to be extremely skilled to do that. I didn’t know what I was doing when I started. I just tried certain things. In fact, I tried and failed a billion times.
I made the same wrong decisions over and over again. I remember losing $3000 in just a couple of minutes, and I was so terrified.
Everything I had built over the previous months was just gone. And that’s how fast it goes, especially when you do leverage trading.
That emotional roller coaster hurts more than just your personal life. It hurts your finances, relationships, and your daily life. It can even hurt your health.
I wouldn’t recommend leverage trading too much because it puts a strain on your emotional life.
It messes up with your emotions – It did with my emotions.
After three months of profitable trading, I was burnt out. I couldn’t handle it anymore, but I was so addicted to the game.
I took a week-long trip to the south of Spain to stop trading. I felt like I couldn’t even touch or see my phone.
After five days, I opened my account and started trading again. I started losing money. It was almost like an addiction for me, and I couldn’t quit. That’s the moment I realized I needed to stop it all.
It took me about one year to realize that this is actually not what I wanted to do.
Ask yourself, do you really want to trade?
Most people don’t want to, but they see the upside. They see the success stories and think it’s easy.
They think all it takes is a couple of clicks and you make $1 million. That’s how it looks from the outside. But there is so much going on from the inside.
Really ask yourself, do you want that emotional roller coaster?
It’s going to be an emotional roller coaster. I see that with myself and with other people.
Every person who gets into trading gets some other issues out of it.
I don’t want to talk this profession down. I want you to know what you’re getting into. I don’t want you to find out when you’re already into it.
Trading is super draining. It took me years to figure out the right strategy. And even then, I made millions of mistakes.
That’s just trading!
You’re trading against other people, algorithms, and computer bots. Everyone wants to win, so it’s a constant battle.
You’re fighting against a whole crowd of people, and it’s a zero-sum game. Trading is just like poker. There’s a winner and a loser.
To be on the winning side, you have to immerse yourself.
You have to mentally prepare yourself for that.
Trading is about 20% strategy and 80% mindset. You need to sleep well, eat well, and take care of your body.
You need to also get time off of trading.
With cryptocurrencies, it’s 24/7. With regular markets like stocks or forex, at least you have weekends where you don’t have any trading.
But with crypto, it’s 24/7!
It’s even during Christmas. I remember one time I almost forgot Christmas dinner because my action price points were signaling that I had to trade. I couldn’t stop.
I almost forgot to enjoy life.
And so, if you have that intense moment where you can do that, then definitely take the time off. Teach yourself the skill.