Helping others level up (League of Legends), in exchange for more than 20 bitcoins. This is the first bucket of gold Simon earned in Crypto.
However, good luck does not accompany a person for long. Simon, who rushed into the market, found that money earned by luck could easily be lost by skill. In this fast-moving information industry, opportunities disappear in seconds. The prerequisite for continuous profit is neither luck nor experience, but the speed of learning.
When OGs looked down on the old Bitcoin network, as a newcomer with nothing, he dived into the no-man's-land of inscriptions. Perhaps because he was a blank slate, he found he could learn faster than others. Through studying the underlying mechanisms, he was able to compress the trading cost of others from 100 USD to 2-4 USD. This was his 'comeback as a newbie,' a textbook example of cognitive arbitrage.
Now, his strategy has split into two extremes. On one side is 'run fast': like a hunter searching for loopholes in exchange rules and early benefits in emerging tracks, squeezing out value before others react; on the other side is 'slow hoarding': adhering to a minimalist cycle philosophy where positions are always either 0 or 100—either 100% held in stablecoins or 100% held in Bitcoin.
In this issue (SignalPlus Big Player Interviews), Simon proves a simple truth with his experience: In this market where information is priced quickly, the only moat you can build is your speed of learning. 'The game in the cryptocurrency space is about who runs faster, and running fast requires learning fast.'
Beginning: From windfall to losing by skill.
SignalPlus: Please introduce yourself briefly to everyone.
Simon: I'm not a big player, nor a diving enthusiast, I just occasionally go diving with friends. I studied in the UK from middle school to university, and my first job after returning to my country was at one of the Big Four. After that, I fully devoted myself to the cryptocurrency space.
SignalPlus: How did you become interested in the crypto space at that time?
Simon: I actually entered the crypto space twice.
The first time should have been in 2015 or earlier when I was working part-time in college leveling up in League of Legends, and a client couldn't pay me, so he gave me about 20 bitcoins. At that time, I didn't take it seriously until later when I returned to my country and saw Bitcoin news on CCTV. By then, it was over 20,000 each, and I sold all of them.
After selling, I felt this place could make money, so I rushed in with friends to do arbitrage, but lost quite a bit, losing more than half of my first bucket of gold. Later, a friend pulled me to play GameFi, and that’s how I re-entered the crypto space.
SignalPlus: So there was a gap in your two experiences in the crypto space; why didn't you continue to pay attention during that time?
Simon: I'm not an OG; this was the first bucket of gold that heaven gave me. At that time, I didn't understand at all; I was just helping someone level up, and he gave me these bitcoins. The gap in between was because I had just graduated from university and was looking for a job, and later working at one of the Big Four kept me busy, so I knew very little about the cryptocurrency space.
Money earned by luck can result in losing half of it by skill. At that time, I was doing arbitrage with friends; my level was poor, purely a newbie, and I lacked the ability to compete with professional teams.
SignalPlus: You mentioned you later re-entered the crypto space by playing GameFi; can you elaborate on that?
Simon: At that time, I was playing Axie Infinity with friends, and later StepN. At first, it was just to play games; I didn't think about making money since I still had a job. But during the game, I needed to use USDT (stablecoins), which led me to indirectly touch the market, and later I even started farming and selling NFTs, and my interest gradually grew.
SignalPlus: What are your views on the GameFi boom led by Axie and StepN at that time?
Simon: Axie was a golden period; StepN felt more like a super hit in the late stage, making the market seem very prosperous. My only feeling at that time was that my level was too low and my understanding was not enough; otherwise, I should have created accounts in bulk to participate.
This is somewhat similar to my later main strategy—'wool pulling.' I prefer to call it risk-free arbitrage. For example, during OKX's new listing activities, we would create 150 accounts to participate. If I had this awareness at that time, I should have made a good profit by creating accounts in bulk for Axie.
SignalPlus: Your approach sounds very much like a professional 'wool pulling studio.'
Simon: We can't compare ourselves to real studios. They can easily have 200 to 500 accounts for OKX new listings, and for some small projects even thousands of accounts. We are just doing it for fun, with a scale of dozens of accounts.
Inscriptions Revelation: Go to the 'No Man's Land' to mine.
SignalPlus: Although you are very modest, we know your asset scale has exceeded 500,000 USD. Managing such a large amount of funds, aside from these activities, have you considered other trading strategies?
Simon: I haven't been in the space for long and have only scratched the surface of various tracks. From exploiting exchange benefits, taking airdrops, to trading, I feel that I still need to establish what I’m good at.
I excel at finding benefits provided by exchanges to users and discovering some emerging fields. For example, during that wave of inscriptions, I was one of the earliest to get involved. At that time, platforms like OKX hadn’t yet launched related functions, and we were already trading in the OTC market.
After our research, we felt this was a very interesting new thing, so we invested some money like buying lottery tickets. When the market heated up and we felt the lottery was about to win, we firmly believed it would become the future and began to operate in bulk on inscriptions and runes.
SignalPlus: Inscriptions and runes were actually heavily questioned in the beginning and considered useless speculation. Why did you think it was a good thing and were willing to invest resources to operate it in bulk?
Simon: First of all, from the current market performance, it indeed has no practical value. The reason we chose it at that time was because as newcomers, we had nothing and were willing to try various new things. It's like buying a lot of lottery tickets and just happened to win one.
When platforms like OKX started to build the inscription trading market, we had already seen a hundredfold increase from the OTC prices, and we knew this was destined to be a big lottery. At that time, we had already studied Bitcoin's block mechanism in depth, including optimization of gas fees, transaction acceleration, replacement, and 'sniping' (front-running).
When most people were just starting to get in touch, we were already a step ahead. Those successful OGs looked down on the 'old' Bitcoin network; by the time they wanted to understand, they had to spend a lot of time learning about the UTXO model and other underlying logic.
SignalPlus: As a newcomer to the industry, is it easier to seize opportunities in the face of new technologies and hot topics than for successful OGs?
Simon: Yes, it's a kind of luck. We are willing to learn from scratch, and whether it's Ethereum, Solana, or BTC, for us, it's all learning. This has created a huge profit space for us.
For example, while others need 100 USD in gas fees to create an inscription, we only need 2 to 4 USD through technical optimization. This means we have already gained a cost advantage of ten to twenty times as soon as we act.
For example, when no one understood how to 'snipe,' we had already started doing it. In the Bitcoin network, transaction confirmations are very slow; if someone buys an inscription for 100 USD when the market price has already risen to 200 USD, as long as their transaction has not been confirmed, we can technically 'snipe' that transaction.
These operations are purely risk-free bonuses. Of course, this kind of bonus period is very short, it passes like a gust of wind.
SignalPlus: In trading, it is often said that 'only those who can sell are masters.' Inscriptions later also crashed rapidly; did you have a premonition and clear your positions in advance?
Simon: I didn't fully anticipate it. At that time, we were already very satisfied with the profits, and even after gaining some insights in that track, we went on to invest and incubate some new protocols we recognized. When the crash came, those investments also went to zero.
But fortunately, due to our extremely low costs, which are one-tenth or even one-fifth of others, even in a catastrophic drop, we can still safely exit. Of course, seeing assets that once had dozens or hundreds of times of profit go to zero still hurts, making me feel like a fool.
SignalPlus: At that time, did you think it could rise to 1000 times or even 10,000 times?
Simon: At that time, I had no concept of money. For example, for rune stones, our cost was one-fifth of others; when others earned 100 times, you can imagine how much we earned. My mind couldn't think normally.
But later I also stepped into many pits, such as pledging a large amount of rune stones and music boxes to Merlin Chain, missing out on many peaks. It's like the IDO new listing platforms from previous years, early participants make a lot of money, mid-term break-even, and latecomers basically incur losses.
SignalPlus: This sounds like a game of 'hot potato'; do you think it contradicts the financial knowledge learned in textbooks?
Simon: It’s not a scam; the rules of the game are just like that. What everyone is speculating on is the current trend. Just like how Nokia had a high stock price, but after the iPhone came out, it declined. You can't say that Nokia was a game of hot potato.
What I learned in school is actually very useful, I just didn't study seriously before. Later, when I started trading, whether it was learning Python to run scripts for inscriptions or understanding various Greek letters for options, I was 'paying off my debts.'
The game in the cryptocurrency space, I feel, is about who runs faster, and running fast requires learning fast. When something is recognized by everyone and reasonably priced, the bonus disappears.
SignalPlus: Was the wave of inscriptions the one that made you the most money? Or which arbitrage was the most successful?
Simon: My strategies are quite timid; I am a cautious person, with no dazzling arbitrage success. Now I mainly do DeFi and wool pulling, feeling it's just a way to subsidize living expenses. The real money-making, apart from new things, is hoarding coins.
What impressed me was that after trading inscriptions, they would become useless UTXOs. We used Sparrow to merge these useless UTXOs; just these combined were worth over 20,000 USD, with thousands or even six-figure inscriptions.
SignalPlus: Are you currently mainly focusing on user benefit activities from exchanges, like Binance Alpha from a while ago?
Simon: This track has already shrunk.
For example, about two years ago, on Gate.io, we took advantage of a time difference loophole in its new listing rules, allowing us to verify qualifications in multiple accounts with one amount of money, achieving 'multiple bites at the cherry.' In the year of the LUNA crash, when the market fell from 48,000 to 18,000, I achieved over 270% annualized returns just relying on Gate.io's new listings with a seven-figure USD position, and it was completely risk-free.
At that time, Binance's Launchpad also had similar operational space. But now, these rule loopholes have almost all been fixed. OKX's new listing once had an average annualized return of 300%-700% in three days, but that's gone now.
SignalPlus: Does this kind of arbitrage seem to require constantly racing against the rule makers?
Simon: Yes, but in this process, you also grow and learn more technical and on-chain knowledge. However, for me, these are just ways to pass the time.
To truly achieve wealth accumulation, I believe it still relies on hoarding coins or seizing new opportunities like inscriptions that can reshuffle assets.
The Farmer's Philosophy: My positions are only 0 and 100.
SignalPlus: Can you share your coin hoarding strategy?
Simon: My strategy is different from others; I don't use fixed ratio allocation but dynamic selection: either hold 100% in USDT (stablecoins) or 100% in coins (mainly BTC). This decision depends on my judgment of the market cycle.
For example, after the LUNA crash, I thought the market would be low for a long time, so I converted all my coins to USDT. When the market fell to over 20,000 USD, I converted all my USDT back to coins. When it rose to 60,000, I thought it had peaked and converted back to USDT. As a result, it continued to rise to 90,000, and I chased back in, switched to Bitcoin-based, and then the market started to crash again.
But as long as you extend the cycle, you will ultimately profit. For me, whether to hold USDT or hold coins, there is only one choice, and that choice is based on my judgment of the market's overall direction.
SignalPlus: During your time holding coins or USDT, do you use options tools?
Simon: I rarely do complex delta hedging. My options strategy is simple: only act as a seller, not a buyer. Either sell covered calls, sell covered puts, or do double selling. I firmly believe in a saying: 'Buying options is the fastest way to the poorhouse.' Therefore, I never act as a buyer.
SignalPlus: What if your position gets breached?
Simon: If I get breached, my choice is to immediately close and stop losses; I consider my decision-making ability to be quite good. But I will first ensure that I do not use leverage or over-sell.
In Bitcoin-based transactions, if a sold call option is breached, you just miss out (make less), but your total assets still increase. In USDT-based transactions, if a sold put option is breached, you acquire chips at a lower price.
As long as you don't over-sell, there is essentially no real 'cut loss'; it's just a matter of earning more or less.
SignalPlus: Which features of the SignalPlus platform were particularly helpful to you during the process of being a seller in the options market?
Guest Simon: What I care about is implied volatility (IV). For buyers, IV represents whether the odds are favorable; for me, it represents how thick the safety cushion is and whether the premiums are rich. So I observe the changes in IV across various maturities recently and in the long term.
I will also refer to the 'Max Pain' data. Although Max Pain itself may not be accurate, it reflects the market's public expectations to a certain extent.
SignalPlus: In what market environment are you more willing to open positions?
Simon: It depends on whether I am Bitcoin-based or USDT-based at the moment. If you are a Bitcoin-based player, and you believe that Bitcoin will rise to 150,000 this year, then opening a position to sell calls at any time and at any level of implied volatility (IV) is correct in the long run.
In the current market, I am Bitcoin-based because I believe institutions have not fully entered the market, and it is very possible for it to reach 150,000 or even 200,000 USD this year. With this belief, I just open positions freely.
SignalPlus: Can you share your overall view of the current market? Many people are worried that the market is overheated.
Simon: My understanding of the market is not deep, and my judgments may not be correct.
This round of the bull market is very different; clearly, BTC is playing alone, which indicates that the 'old money' and institutions outside may only recognize BTC. But as long as BTC rises, other coins will follow.
Regarding the macroeconomic situation, interest rate cuts are a matter of time, no matter how Powell and Trump argue. Extending the timeline, even if a world war really happens, as long as you still play this game, you will always find opportunities to bottom out. If you dare to bottom out, it means you have faith in it.
Speculation and value investment are not much different. The A-share market claims to be value investment, but why has it been at this level for so many years? The cryptocurrency space claims to be speculation, but why has it risen so much? I choose to believe it will break new highs, so I choose to hold assets in Bitcoin. When choosing to hold in USDT, it’s not that I don’t believe, but I feel that during this period I can be a speculator and accumulate more chips.
SignalPlus: To summarize, you prefer to extend the timeline, stand from a longer perspective, and be more optimistic about the future?
Simon: Yes, because I have never earned more than from hoarding coins; even working harder does not earn more than hoarding coins.
Of course, I only hoard Bitcoin.
Finale: The only moat is 'learning speed.'
SignalPlus: If a newcomer wants to enter the crypto field, what core skill do you think they need to develop the most?
Simon: I don't think I have any specific core abilities; I've also gone through a lot of losses.
When you come out to mix, you have to pay it back. If you didn't take your classes seriously before, you'll have to make up for it yourself. If you didn't learn code properly before, later you have to buy coding books and do it yourself. If you didn’t study economics well before, you’ll need to re-understand it later. To do options, you need to understand Greek letters; if you don't understand, what options can you do? Normal people, if they don't enter finance or the cryptocurrency space, who would understand this?
The rules of the cryptocurrency space are about who runs faster, but before running fast, you must learn fast. The time window may only be a few months; deducting learning time leaves only a few months. Within those months, you have to become one of the earlier ones to run faster than others.
SignalPlus: What is the biggest trap newcomers should avoid?
Simon: Contracts, contracts, contracts. Of course, many genius traders become billionaires by gambling, and we just admire them.
SignalPlus: With the rapid development of AI now, many people let AI help them write code. Has AI helped your trading?
Simon: My first piece of code was indeed given by ChatGPT. But my experience is that if you have no foundation and can't understand the code written by AI, or even can't clearly describe your needs to it, then you can't cooperate effectively. You must first score 60 points on your own for AI to help you fill in the remaining 40 points.
Moreover, relying entirely on AI is risky; there have been instances where someone posted backdoored code on forums, which ChatGPT crawled and provided to users, leading to users' private keys being stolen. Therefore, one still needs to keep learning.
SignalPlus: Looking ahead, what investment skills or life goals do you personally want to break through the most?
Simon: Actually, I have no particular goals. Most of my money is in DeFi now, and I take a small part out to do options to subsidize my living expenses. I just hoard coins, hoping they will rise.
What I hope most is to discover new things like inscriptions again, which can engage me in learning and exploration for a long time, because that process itself is very joyful and happy.
Simon’s success proves that the most effective weapon for traders in the market is not experience but the ability to clear experience and learn from scratch.
We firmly believe that every trader who can survive the bull and bear markets must have a set of discipline and strategy earned with real money. (SignalPlus Dialogue: How to Survive in the Market) We are looking for experienced investors like you.
If you are a seasoned player managing investment assets over 100,000 USD, we invite you to participate in our one-on-one in-depth interviews. We are eager to understand your unique investment style and winning strategies, and we are willing to invest professional resources to organize your valuable experience into in-depth articles to share with the entire community.
Your success deserves to be seen. Looking forward to your contact!
