This man made 12 times his investment in Bitcoin in one and a half years. What did he do right?

Li Li was an individual stock investor who made no money before investing in blockchain in June 2016. During his investment in Bitcoin from 2016 to 2018, he lost all his principal, but eventually made 60 Ten thousand yuan, the long-term holding of Bitcoin earned 12.5 times. This experience taught him how to invest in Bitcoin.

Before investing in the blockchain in June 2016, Li Li was an individual stock investor who had not made any money. He was a divorced bachelor who lived between the office and the rental house every day. calm.

One day, Li Li learned about Bitcoin, a digital currency, while reading a brokerage research report. His eyes lit up after reading it.

The numbers generated by this kind of computer cannot be tampered with, copied or counterfeited. It can realize some functions of currency, has low operating cost and high cross-border transmission efficiency. It has been in operation for 7 years. , there has been no malfunction, nor has it been breached by hackers. It can meet the needs of cross-border payments with low cost and high efficiency.

He seems to have found a sparkling investment product. He is eager to learn more, look for investment opportunities, and obtain higher returns than stocks.

He wants to combine long-term and short-term operations, buy and hold for the long term, and at the same time try to guess the direction of short-term price trends and perform short-term operations.

He decided to use part of the funds to buy at $800, hold it, and use the other part of the funds to short Bitcoin. He happened to encounter a hacker spreading a Bitcoin ransomware virus. The public was angry about Bitcoin, and the price of Bitcoin plummeted. He made 25 Bitcoins from his short order.

He was so excited by the money-making effect that he increased leverage and continued to short. Unexpectedly, the price rebounded sharply. He immediately lost all the 25 Bitcoins he earned, and he cautiously closed the position. No, no loss, no profit.

Later, he made several short-term operations, all of which resulted in losses. Because of the use of leverage, the losses were relatively large. In addition to losing all the principal, he also lost half of the loan. His account was already full of liabilities. He was a little scared.

He summarized through review and found that short-term operations and leverage operations were the reasons for the losses. The other part of the funds bought Bitcoin and made money by holding it.

Based on the return rate of the historical bull market, if the remaining Bitcoins are sold when the bull market ends, the funds obtained will exceed the loan amount. Therefore, he made up his mind to hold the remaining Bitcoins for a long time.

The price trend began to be more and more favorable to him, the increase became larger and larger, and he became more and more excited. When the price reached an all-time high of $20,000, it was widely reported in the news that his colleagues congratulated him and suggested selling a little, but he did not want to leave the singing and dancing party.

When the price turned downward, he was not alert and thought it was a normal correction. Only when the decline was relatively large did he confirm that the bear market had arrived. Because it fell too fast, it would definitely rebound, and he wanted to wait for the rebound before selling. When the price hit a low of $6,000, he went to bed at night so scared that he broke into a sweat.

As he expected, the price rebounded sharply. When it rebounded to US$10,000 in February 2018, he liquidated all his positions. After selling, he felt comfortable and made a profit after paying off the loan. 600,000 yuan. Long-term Bitcoin holdings earned 12.5 times.

He returned to his original life, living a peaceful life between the office and the rental house every day. At the same time, he learned to invest in Bitcoin, hold it for a long time during the bull market, and exit when the bull market ends.

He wants to use this 600,000 yuan principal to achieve an average annualized rate of return of 100% after 5 years of blockchain investment, earning 18 million yuan, and buy a Shenzhen apartment Housing in Futian District. Can his dream come true?
Return to blog