Making a Living Day Trading Cryptocurrency
In 2011 I owned about 3500 Bitcoin which I purchased for $600! Today 3500 BTC is worth over $20 million dollars.
The day I first heard about Bitcoin on Reddit, a friend had also called me to tell me about it. We spent most of our friendship talking about Ayn Rand and programming, so when we heard about a currency that was software and couldn’t be controlled by governments we were very interested. I purchased $600 worth of BTC and my friend and I planned on buying a mining rig.
Being 22 years old in New York City is a financial struggle. I didn’t have enough money to pay rent, and the value of my Bitcoin had dipped to $550. I sold it all and ditched my plans for a mining rig. My financial situation needed to be stabilized before I could invest in assets based on my philosophical beliefs.
Bitcoin stayed in the news over the years. The price went up and down, silk road happened, the legality of it was called into question, exchanges were hacked, and people gained and lost millions of dollars. Through it all, Bitcoin’s price kept rebounding, kept going up.
Since I needed an income and didn’t want to get a job, it was time to try this trading idea. But I set a strict requirement that if I didn’t earn enough money to pay my rent after a month, I’d quit trading.
I signed up for two exchanges: GDAX and Poloniex. GDAX made sense because it is run by Coinbase, the company where I purchased and held Ethereum. I needed Poloniex as well because there were many cryptocurrencies being traded there (Altcoins - cryptocurrerncies that are not BTC).
Those are the first two exchanges that I used. Now I use others since each exchange has pros and cons.
A live crypto exchange is intimidating at first glance. There are charts and numbers changing at the speed of sight.
I felt overwhelmed but sat through the confusion to try and make sense of what I was looking at. Soon I could see where to place orders to buy and sell, and the charts started to make sense too.
I made $5 on a $100 investment in my first 45 minutes of trading. 5% profit. Bullish!
As the month went on I spent hours trading. I’d buy when the price looked like it was going up, and sell when it looked like it was going down. I didn’t use any technical indicators and I didn’t have a strategy. But it worked. I made enough to pay my rent, so the possibility of making a living from this was validated.
Although I profited, I wasn’t sure if I just had a lucky month. I wanted to formalize my trading knowledge so I could do more than buy low and sell high. There had to be a real strategy to this stuff. I read as many books as I could on trading stocks and foreign exchange markets. I made a lot of mistakes. But eventually I found my rhythm and strategies. I discovered a trading bot that did my work automatically for me.
After a few months I got better at trading. I was earning more Bitcoin than I needed to cover my monthly expenses. At the end of the month I sold only what I needed, and kept the rest of my net worth in Bitcoin. Around this time in my trading career it was getting to the point where I could afford a Tesla or put a down payment on a house by selling my Bitcoin. I choose the Tesla. Why? at every time in your trading career, it's good to take a breather and Live life!
Luckily enough, the price of Bitcoin reached an all time high in Dec 2017, as it has done so many times in 2017 and I was able to sell alot of Bitcoins to buy a house for me and my wife.
Taking the USD I’ve made to buy a home was a solid decision. I now live a nice middle class lifestyle in Los Angeles and I drive a flashy car.
Needless to say, my life has really changed and for this am grateful to my trading strategy.
You really need to find your own strategy and not follow others. Read all you can and take what you like and disregard the rest.
Most of the alt-coins (any other coin apart from Bitcoin) go up and then down. If you bought and then sell 200 times a day, you can make money at it. If you already have a Binance, Bittrex or Poloniex account and would like help in micro trading 24/7 then you should use Crypto Profit bot or Profit trailer.
I use Profit Trailer because I can make a fortune on buying and selling alt-coins that stay flat on the exchange markets. Since Profit Trailer allows me to trade all the alt-coins, instead of one at a time, I know that there is another trade in a few seconds.
I have done pretty well in the last 2 years since I started trading actively. Before that, I used to trade more than 3 hours a day buying and selling alt-coins when I had the time.
As a day trader, I have traded in various asset classes including binary options, forex for 5 years before cryptocurrencies so yes I do know a little about what makes it tick. More importantly I’ll tell you that crypto is my trade.
As the saying goes, the proof is in the pudding. So yes day-trading cryptocurrencies can be a very profitable business provided you know what you’re doing. Best of luck!