Li Xiaolai: The biggest winner in Bitcoin, he turned 100,000 bitcoins into 13.5 billion yuan in cash, realizing his dream of becoming rich overnight. Li Xiaolai was originally just an English teacher at New Oriental, living on his salary, but through a chance opportunity, he learned about Bitcoin and saw great potential in this virtual currency. He bought bitcoins madly when the price was low and hoarded them, selling them when the price was high. Some may think the profit from this price difference is not much, but even a small fly is meat. After continuous efforts, the number of bitcoins he held steadily increased to the huge number of 100,000.
Guo Hongcai: Known as 'Master Bao Er', a Bitcoin angel investor, his investments include Yihang Cloud Computing, Fortune Fund, Yangyang Interviews, Bitcoin Fund, and Bit Wallet. He once owned the largest Bitcoin mining farm in the world. In 2013, he bought Bitcoin at Garage Cafe. In 2016, Guo Hongcai was invited to the Davos Forum and made a stunning appearance! Wearing a T-shirt and flip-flops, he challenged the financial elites in suits and ties, loudly voicing the Bitcoin community's revolution at the forum; officially joined the advisory committee of the WINGS Foundation. In 2018, he spent 500 bitcoins to buy a mansion in the U.S.
'Bitcoin helped me buy a house' — Daniel Crocker: Business owner. In 2012, Daniel Crocker was completing his apprenticeship at an IT company. Every lunch break, he would chat with colleagues and make some extra cash. When Bitcoin came up, he decided to give it a try with a small investment. Then, as its value continued to rise, he held onto these coins for 8 years. Last year, he sold enough to cover half of his house deposit. 'I do know some people who have done deep research, but I think I was just lucky enough.'
Kingsley Advani; Software Engineer. Some speculate, some invest, but Kingsley Advani goes all in. He emptied his bank account and sold everything he owned to buy as much Bitcoin as possible. It paid off significantly. In mid-2017, just as a massive bull market began, Kingsley saw the incredible potential of Bitcoin. He took all his money, sold everything he had, including his laptop, and bought $34,000 worth of Bitcoin. Months later, he became a millionaire. He now travels between San Francisco, New York, and London as a consultant for a cryptocurrency startup. 'It's like a rebellion against traditional finance,' Advani said.
Erik Finman: High school dropout and entrepreneur. In 2011, 12-year-old Erik Finman took the $1,000 his grandmother gave him and invested in Bitcoin. At that time, one Bitcoin was worth about $10. He dropped out of high school at 15 and bet his parents that if he made $1 million by 18, he wouldn't have to go to school or college. Soon after, he sold $100,000 worth of Bitcoin and started a business from his bedroom. He founded an education company called Botangle. Two years later, he sold his company for 300 bitcoins. When Bitcoin surpassed $2,700, he officially became a millionaire. Importantly, he was only 17, so he won the bet with his parents. He didn't go to college but traveled the world, visiting Dubai, Hong Kong, Beijing, London, Prague, Sydney, Melbourne, Vienna, and Stockholm. Today, he has an eight-figure net worth. He is a key investor in a Silicon Valley cryptocurrency startup and has helped introduce the 2020 cryptocurrency bill as a civic advocate.
Kristoffer Koch: In 2009, Norwegian student Kristoffer was writing a master's thesis on cryptography. When he read Satoshi Nakamoto's white paper on Bitcoin, the insights he gained from his research helped him see the potential impact of this new cryptographic technology. He spent $26.60 to buy Bitcoin. Despite only being $26.60, his partner was skeptical about spending 'real money' on 'fake money'. Fast forward to 2013, Kristoffer saw Bitcoin in the news. He quickly calculated and realized he was close to becoming a millionaire. He sold 1,000 bitcoins and bought an apartment. If he had held onto the other 4,000, he would be worth hundreds of millions.
A madman traded cryptocurrencies for ten years, earning 30 million yuan. To change his fate, he must try the cryptocurrency circle. If you can't get rich in this circle, ordinary people will never have the chance. The cryptocurrency circle has never lacked opportunities to get rich; what's lacking is how to find the right method!
My experience is that to make money in this circle, there are a few points:
1. Cognitive gap: If your cognitive dimension is high, you can make money. For example, if during lunch someone keeps talking about Dogecoin, it's not because he draws better than the mouthy teacher, but because his cognitive dimension is high, and his understanding of investments is several levels above most people. He could see that his prediction of Dogecoin several months ago was the main driving force behind this round of Dogecoin's rise. Or Tony Fatty, whose understanding of trading is several levels higher than others, can make big money from trading.
2. Information gap: This is mainly reflected in some new narratives with high odds emerging early, such as mining, selling, and grabbing white coins. If you enter earlier than others, you can earn good returns. As for how to have an information gap, it's quite long; I won't elaborate here. Past discussions on Weibo have touched on it a bit, and those with intent can find it.
3. Execution gap: You either work hard or have skills. When there is no cognitive gap and no information gap, the difference in earnings between ordinary people is caused by the execution gap. If you work hard or have skills, you can also make money. For example, working hard, doing batch operations, making tools, etc. Wang Laoshi, the director, He Bi, and playing NFT with several selling tools or using tools to make money are all typical examples.
These three are foundational, and they can also interact with each other like building blocks, such as combining cognitive differences with execution differences, or information differences with execution differences!
Three years in the industry, five years understanding it, and ten years becoming a king. Trading is not about becoming rich overnight; it is about reasonable profits, achieving longevity, stability, sustainability, and high probability, thereby allowing oneself to continuously acquire wealth.
If you are determined to stay in the cryptocurrency circle for a lifetime and hope to one day trade cryptocurrencies to support your family, then please remember the following nine iron rules. The content is not much, but each sentence is full of practical advice, to be shared with those who are destined!
One, regarding returns. Suppose you have 1 million yuan. After achieving a 100% return, your assets will reach 2 million yuan. If you then lose 50%, it means your assets will return to 1 million yuan. Clearly, losing 50% is much easier than earning 100%.
Two, regarding price fluctuations. If you have 1 million yuan, after increasing by 10% on the first day, your assets reach 1.1 million yuan, but then decrease by 10% on the second day, your assets will remain at 990,000 yuan. Conversely, if you decrease by 10% on the first day and increase by 10% on the second day, your assets will still be 990,000 yuan.
Three, regarding volatility. If you have 1 million yuan, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year, your remaining assets will be 1.405 million yuan, with an annual return rate of only 5.83%, even lower than the interest rate of a five-year government bond.
Four, regarding 1% daily return. If you have 1 million yuan, if you can earn 1% every day and exit, after 250 days, your assets can reach 12.032 million yuan, and after 500 days, your assets will reach 145 million yuan.
Five, regarding the 200% annual return. If you have 1 million yuan and achieve a 200% return for five consecutive years, your assets will reach 243 million yuan after five years. However, sustaining such high returns is very difficult.
Six, regarding ten times in ten years. If you have 1 million yuan and hope to reach 10 million yuan in ten years, 100 million in twenty years, and 1 billion in thirty years, then you need to achieve an annual return rate of 25.89.
Seven, regarding replenishing positions. Suppose you bought 10,000 yuan of a certain cryptocurrency when it was 10 yuan, and now it has dropped to 5 yuan. If you buy another 10,000 yuan, your average cost will be reduced to 6.67 yuan, not the 7.5 yuan you might expect.
Eight, regarding holding costs. If you have 1 million yuan, and invest in a cryptocurrency with a 10% profit, when you decide to sell, you can leave 100,000 yuan in market value, then your holding cost will be zero, and you can hold it long-term without pressure. If you are extremely optimistic about this cryptocurrency and leave 200,000 yuan in market value, you will find that your profit will increase from 10% to 100%. But do not be complacent, because if this cryptocurrency drops 50% later, you may still incur losses.
$TRUMP