In March of 2017, just one year ago, a cryptocurrency Investor could have bought 3.85 million Verge Coins (XVG) for a notional value of $100.
In early January 2018, those same coins were valued at more than $912,000.
That is not a typo, that is a nearly 1,000,000% return.
I’ll say it one more time from March of 2017 to January of 2018, Verge (XVG) cryptocurrency had a return of almost ONE MILLION PERCENT.
Today that same 3.85 million XVG coins is worth more than $177,000.
Only a 177,000% return in one year, decent return right?
How about PAC Coin now $PAC ?
Last March it was PAC and as we know 1000 PAC = 1 $PAC. So I will simply talk in US Dollar terms.
$100 in today’s market buys you approximately 15,300 in $PAC
One year ago that same $100 bought approximately 10.5 Billion old PAC, or 10.5 Million $PAC. Which is now worth more than $66,000.
It under-performed XVG by a tremendous amount, but 66,000% in a year, it would be hard to fathom someone being upset with profits of that magnitude.
If those numbers caught your attention, that was the point. Many people who just read that may be thinking some of the following thoughts …
Who did that?
Are those numbers right?
Is that even possible?
Why did they only put $100 in if they knew it was going to increase like that?
The responses would be as follows …
Quite a few people did, the numbers are 100% correct, and it is very possible. They didn’t know the returns would be like that, no one did.
It is the difference between investing and trading.
The difference between doing extensive research, and looking for investment advice on a message board.
Anything is possible.
Let’s look at another famous or infamous Bitcoin named Coin. “Bitcoin Diamond”
Launched in late November of 2017. Had a 10% pre-mine, each BTC holder received 10 of these free of charge. Bitcoin Diamond traded over $100 a coin in its first 24 hours, it is now just about $2.50, and has consistently made lower highs and lower lows. What was attractive ? The name Bitcoin ? Or the word Diamond ? It was just the market, a few guys try and buy something where no one is selling then the sellers flooded the market, If you had a BTC that day and someone was going to give you an extra $1,000 for some forked coin with little to no info, would you keep it in your portfolio or would you take the profits.
TheOne’s Investing and Trading Rules 101:
You may be smarter than 99% of the competition, but you need to worry about the 1% who are smarter than you.
Know why you have your current position on.
Are you comfortable and familiar with the market you are currently engaged.
Do you know about the drivers and exterior factors in your product.
IF “Everybody” is buying, and you own it, think about selling a nominal amount if you already own it.
If the news and order flow is so negative and you are just about to give up. Take a moment and ask yourself why you too, want to exit at that current point in time.
If the boat it too crowded a small leak can cause a great many to jump ship.
Do not ever go all in. You will not buy the dead low and sell the dead high.
Someone Else owns the same asset at a lower price than you do.
Someone else is willing to sell your asset at a lower price than it is currently trading.
DO NOT MARGIN WINNERS TO BUY MORE OF THE SAME UNDERLYING
Have a time horizon
Are you an algo trader and have microsecond trades?
Are you a day trader? Then you shouldn’t look at a Multi month or year chart as it will drive you crazy
Do you hold positions for weeks or months?
Are you a multi month investor?
Are you looking at you account only once per year? Then why would you look at a 5 minute candle chart ??
Have an exit plan … On the profit side and the loss side.
Did you put a portion of the capital to work on the first transaction? Are you adding length on losers or are you buying more of the winners?
I am going to show some other comparisons from March 2017 to March 2018.
March 2017 total Cryptocurency Market Cap = 24 Billion US Dollars
March 2018 … Bitcoin and the Hard Fork Market Caps …
Bitcoin + Bitcoin Cash + Bitcoin Gold + Bitcoin Diamond = 152 Billion Dollars
That said, in 2014 when Mt. Gox claimed bankruptcy…
250,000 BTC was roughly $125,000,000
Fast Forward to March of 2018 …
These would be the positions and values that were seemingly created out of thin air.
250,000 Bitcoin Cash = $230,000,000
250,000 Bitcoin Gold= $13,000,000
2,500,000 Bitcoin Diamond= $7,000,000
TWO HUNDRED AND FIFTY MILLION DOLLARS THAT WAS CREATED OUT OF THIN AIR.
Guess I should add the 250,000 Bitcoin worth about $2,000,000,000
In other news …
The past week, a few global geo-pol events have unfolded that are noteworthy. The G-20, has come and gone with the general consensus, “not as bad as we thought.”
The Federal Reserve raised interest rates as promised, but … US Treasury complex rates are all lower and Eurodollar rates appear to be in a major topping pattern.
Oh, and the US is now in “Trade Wars…”
June Crude Oil Futures are at a major level of interest. $66.50. If they are unable to break this level, a print in the low 50’s will be coming in short order. On the other hand, there is very little resistance until $85 should they clear this barrier. Probably why the option algos once again have the blinders over their eyes.
Gold is nearing a multiyear high, which will be met with major resistance right above the $1,371 area, probably why option algos have volatility near 10% in the short-term options. A one month at the money option costs approximately $14. Seems highly unlikely Gold would not move 1%, you just have to pick the right side. Owning a strangle should show outsized returns as well.
Assets generally don’t head toward multi year highs and just sit, it was less than 60 days ago that a large numbers of option algos imploded, but they are algos and have limited short term memory.
How about cryptocurrencies. Dare I say it was a quiet week ? Over the past 10 days the market has ranged from 275 billion to 355 billion dollars and is currently 305. The shorts tried pushing towards the low on March 26th on fairly weak volume, but buyers met them and we are now back above the 300 billion level.