First bucket of gold in 17 months, the first 1 million by the end of 2019.
Second bucket of gold in 4 years, entering A8 by the end of 2022.
Strategy: Short selling, grid trading, hedging interest rate spreads.
Confirming, currently there are nearly 28 Bitcoins in the spot market; after these years of accumulation, I hope to reach 30 by the end of the year.
My first understanding of the crypto world should have been in 2012, when I thought Bitcoin and the local Q coin were the same thing. Later, every year I would see news online saying how many times this thing multiplied, and I always thought it was a Ponzi scheme, so I never paid attention.
Later, gradually in 2018, I worked in an internet company in South Korea, which led me to understand more deeply, and I officially entered the crypto space.
However, I have always had a distrustful attitude toward the crypto world, believing that without regulation, it can be manipulated. Therefore, I completely avoided trading B and HY from the beginning.
Regarding trading B, my attitude is that I do not have the risk tolerance or the ability to overcome human nature. Once I buy, I will definitely keep watching the ups and downs. I cannot handle the disappointment of a decline, and I will definitely cut losses at low points.
Regarding HY, I find it even more absurd; I summarize it as follows.
Create a wealthy person who does not work for their gains.
Let a group of people who do not work for their gains see and join.
Then raise a group of people who truly live off the efforts of others.
Returning to the main topic, precisely because of the above, I have a clear understanding of myself, so I have never blindly followed the crowd, rushing towards HY or trading air. The things I first got involved with were those that required time but were stable.
For example, during the years 2018, 2019, and 2020, I crazily engaged in airdrop captures. At that time, the concept of the metaverse emerged, major exchanges competed fiercely for clients, and I just acted like a beggar online, picking up the airdrops thrown by these big players. I spent over ten hours online each day, even set alarms at midnight to grab foreign airdrops. This went on for more than a year until HUOBI completely cooled down, and BNB multiplied a hundredfold. I earned my first bucket of gold in the crypto world, 100 coins. I remember it very clearly, October 2019.
Then in 2020, during the pandemic, my company in South Korea started laying off employees. Initially, I was doing front-end architecture for some domestic companies, but as business worsened, I simply resigned and went full-time into crypto, and it has been five years now.
Since 2021, the strategy has always been to hedge interest rate spreads.
Actually, the principle is very simple; it’s more about time accumulation and information asymmetry.
Let’s take the current situation as an example.
See the above image.
One is the current Bitcoin price in the local market, which is 73.2W.
One is the largest exchange's Bitcoin price in the local market, which is 148 million local currency.
Use the largest settlement center for the local currency, and calculate with WISE.
148 million local currency, according to the current exchange rate of 188 (selling rate, offshore rate).
Then the price in the other market is 78.7W.
73.2W domestically.
The difference between the two markets for Bitcoin is 55,000.
This is the interest rate spread, which is relatively high today at 55,000, an exception during periods of significant market volatility, usually around 35,000 to 40,000.
Why is there an interest rate spread? The principle is simple: the price of Bitcoin is pegged to USD, but the exchange rates between us, USD, and the local currency have an unequal exchange rate difference, known in economics as a triangular exchange rate difference, which you can learn about on your own.
This exchange rate difference leads to the generation of interest rate spreads, which are stable and persistent. If you don’t believe it, you can compare any day in history; it always exists, and the local currency is always higher than domestic.
What needs to be done next is very simple.
Buy domestically, send to the other side, sell as local currency, then without mentioning it, directly convert to MID COIN, and bring it back. That’s it.
The whole process takes about 20-30 minutes, and at most 40 minutes in the slowest cases.
After circling around, deducting GAS fees, transmission fees, volatility losses, etc., I can actually benefit from 60-70% of the interest rate spread.
That is, each time 300-400 in fees, about 8-15 times a day is the limit.
It is worth mentioning that:
1. Because the entire process does not involve CASH, everything is on-chain, so the KYC on this side can be bypassed using an LTE CARD. Many people are unaware; there’s no need to blindly inject funds, it’s meaningless, just bypass it directly.
2. The interest rate spread for Bitcoin hedging is not done every time with the whole Bitcoin, but in small amounts multiple times, generally one-fourth or one-fifth at a time, which is better.
3. Hedging interest rate spreads requires time, at least 2-3 hours daily, and sometimes up to 8-10 hours.
4. Hedging interest rate spreads is not an infinite loop; it should depend on the market and various trading data to decide whether to start a new round, requiring personal research.
In the end, my strategy is for reference only, for communication, and for personal judgment.
What I want to say to everyone is that the crypto world offers everyone a fair opportunity, but the prerequisite is to examine oneself well and truly understand oneself.
Choose what suits you, rather than blindly following the trend.
One or two successful attempts shouldn't lead to blind confidence that everything is rewarded by hard work.
Maintain a humble and eager-to-learn attitude, have expectations for new things, increase your knowledge and knowledge reserves, and one day, you will get what you want.