Why 20% profit in crypto is TERRIBLE.

[cocoadreamboy]

Crypto exists as a highly volatile, and heavily manipulated commodity. Just in the past 7 months bitcoin has gone from $3,300 to $13,800 and is currently at $11,350. If during all that time you have only made a 20% profit you are a terrible crypto investor.

Crypto is not a governmentally regulated security. It is a high risk, high reward. When you invest in crypto you are putting your money at high risk, there is no FDIC backing your deposit, there is no SEC investigating the earnings reports, you could even lose the private key and lose your money forever. Which is why, when I invest in crypto I expect at least a 2X return with expectation of 3X-4X returns.

In no other investment has it been possible to expect such a return of 4X within a year. That is what makes bitcoin and crypto special. It is high risk high REWARD.

The problem is, crypto is new. People don’t understand what it is. People don’t know how to measure it, quantify it, capitalize on it. Crypto is for most, a mystical “digital money” that sometimes is 20k and other times it is 3k.

I started my crypto journey with $800 of severance from my last regular job. Over 2016 that $800 turned into $30,000. Over 2017, that $30,000 changed to $250,000, and I made plenty of stupid mistakes. 2018 was a cold year. It was a learning year. I spent most of my time developing my metrics and honing my understanding.

In my experience crypto is for multiplying money not for gaining percentages. By understanding the speculation in the market, understanding how much it costs to make a bitcoin, and selling or buying slowly with purpose and patience anyone can multiply their investment. It took 4.5 months to go from $3,300 to $13,800.

I made my site and my metrics in order for people to understand what they are investing in. So they could buy when its $3,300 and sell when its $13,800, and understand what they are doing and know what they are buying and selling.

I caution against purchasing $11,350 bitcoin by asking these questions.
What do you expect from it?
Do you expect bitcoin to go to 20K magically?
Is it a bad idea to be patient right now?

Check out my site, take my masterclass, see what I’m working with. I made it totally free just for you.

https://www.amsinger.org

Much love and hard work,

Aaron

[Herbert2020]

Crypto exists as a highly volatile, and heavily manipulated commodity. Just in the past 7 months bitcoin...

yes altcoins are heavily manipulated but not bitcoin, at least not anymore. the bigger bitcoin market gets the harder it will be to manipulate it and it has grown so much in the past 10 years that the manipulations have shrank down a lot. while they still dominate the altcoin market.

If during all that time you have only made a 20% profit you are a terrible crypto investor.

i strongly disagree, specially if you are talking about trading cryptocurrencies not just bitcoin. if you could secure 20% profit in a shitcoin that is getting pumped it is so much better than trying to make 1000% profit and risk getting dumped on without being able to pull anything out.

when I invest in crypto I expect at least a 2X return with expectation of 3X-4X returns.

what returns you expect should not be a general thing for all situations. it differs based on the situation. for example was in a day trading thing or a long term investment. was it during a bull run or a bear market. was it bitcoin or an altcoin. was it during the pump of the altcoin or when it was at the bottom,....
each scenario means a different approach and a different profit target.

The problem is, crypto is new. People don’t understand what it is. People don’t know how to measure it, quantify it, capitalize on it. Crypto is for most, a mystical “digital money” that sometimes is 20k and other times it is 3k.

that is because a lot of people in this market have no understanding of what cryptocurrencies are. they just see some numbers in their monitor which magically (in their eyes) go up and down.
otherwise those with understanding of the technology also understand there is nothing "mystical" about it! and the value can also be quantified.

I started my crypto journey with $800 of severance from my last regular job. Over 2016 that $800 turned into $30,000. Over 2017, that $30,000 changed to $250,000, and I made plenty of stupid mistakes. 2018 was a cold year. It was a learning year. I spent most of my time developing my metrics and honing my understanding.

this is yet another dangers of this market. it can easily give newcomers a false sense of expertise. for example during 2017 if you closed your eyes and selected any coin randomly and thrown money at it, you could make a ton of profit.
many of those who made such profits, thought they have mastered this market and that led to massive losses a couple of months later when the reality hit.

[fiulpro]

I understand what you are trying to say but you should know that , the profit one makes depends upon the investment he is willing to do at the same time people are not that free to take part in active trading therefore most of people engage in holding bitcoins for a long time .
Then there comes countries where the banks have denied access to do anything with cryptocurrencies and I think this have hindered thousands , when you have an active bank account plus and active wallet balance then only it does work..
Otherwise the profit is not worth mentioning.

[Ozero]

Cryptocurrency provides us with very great financial opportunities. Increasing your amount in cryptocurrency from $ 800 to $ 250,000 in 2016-2017 is pretty good. 2018 was a year of loss for everyone, especially for those who were selling their assets in cryptocurrency at that time.
It is hoped that in the coming years, cryptocurrency will also provide us with the opportunity to profit using the experience already accumulated during this time.

[antisocial77]

%20 profit is excellent for every business.but especially in crypto, with fomo effect its hard to predict where it ends so we were all exit trade earlier many tiimes.if you think like that %20 is not good if coin made %70-%80. But its not a wise way to trade.

[maydna]

It's better to take 20% of the profit than never, and we can repeat to get those percentage many times than to try to get 1000%, but we need to wait for a long time. Maybe that will work for some investor, but for me, I prefer to get any profit without having to wait for a long time because of the cryptocurrency market cannot be predicted. But that will depend on every people strategy on how much percentage they are willing to take and as long as they can succeed to reach the target.

[bryant.coleman]

Do you know the current ROI for the United States Treasury bonds? It is somewhere in the vicinity of 3% per year for 30-year bonds. If you want to invest in a "safe asset", then this is the sort of return that you get. From your post, you are admitting that BTC gave a return of 244% during the last 4 months. Annualized, that gives a return of almost 7.2x. Let me know which other asset will give you returns anywhere near.

I have been to this market for quite some time (from 2012), and I am very happy with the sort of returns we had so far in 2019. Forget 244%, I'd be happy of I get 30% returns per year. BTW, I had purchased my coins for $10 per coin in 2012. Since then, it gave me more than 1,000x returns. Those times will never come back, so I'd rather advice you to enjoy wherever returns you get. Greed can destroy everything.

[Haunebu]

Seriously? Almost everyone would be happy with a return of 3-4%. Its all about profit at the end of the day. Small profit is better than no profit at all. Very few traders actually manage to earn huge profits on a regular basis in this extremely volatile market.

Personally, I am a HODLER and I have managed to earn around 1-2% every month through my investments which is small profit, but I am satisfied. Scenarios like the 2017 bull run happen once in a blue moon and you cannot rely on them regularly.

[Onuohakk]

Cryptocurrency is your freedom of financial breakthrough. You've your wealth in your hand's. The higher you invest the more wealth you get. I don't believe that someone can loss money in bitcoin rather you gain. Investing in bitcoin requires patience to see positive result. There's no harm investing big in bitcoin

[Kakmakr]

I made about 800%+ profit on my first bitcoins that I bought and that was enough to cover 40 years investment is something else that I could have invested it in for a guaranteed return of 20% per year. So, I am quite happy that I did not have to wait 40 years to make the same returns. 

I re-invested some of that profit to buy more bitcoins and I dumped some of that money into the other investment where I get 20% per year, so for the next 38 years, I would still make 20% profit on top of that 800% profit I already made. <The other option is a medium risk investment> 


What is the catch, what do you get from spending your time on free courses?

[serjent05]

It's true getting 20% profit in crypto is somehow terrible, but it is better than holding a bunch of it waiting to get more profit then all of a sudden the price crash.  The high volatility of cryptocurrency makes us gain more than 100% profit in a short span of time but it also risk us of lossing 100% of our investment if we failed to sell before the dump.  I have experienced both, gaining more than 1000% and losing 100% of my investment in separate occasion.

[timerland]

I don't think making 20 percent profit is bad in any industry, and I'd still love to make a 20 percent profit of my investments in crypto.

I agree with you saying that crypto is usually quite volatile and often it's seen as a huge risk, huge reward sort of situation, but there are a lot of investments that are still fairly stable (other then stablecoins).

I think your mindset is much too greedy when dealing with crypto - be happy with any money you make.

[hugeblack]

Short Answer: Always buy when others want to sell.
I know some of those who bought at $ 20,000 and lost all their money in a few months "precisely less than a year" as the price dropped below $ 3,000.
There is no specific law governing the rise and no one would have thought we would reach the $ 1200 level before the end of the year.
  What you think is a terrible deal now may be the best investment you have ever made.
  Think rationally and don't let your emotions manipulate you.

[rdluffy]

You're thinking BTC is just a quick investment and one day or another will disappear, and have to get as money as possible in the process

I see BTC in a different way, I'm here trying to accumulate more BTC in this process, I trust in the technology and want to be prepared for the future, with BTC in my pockets

[timerland]

Short Answer: Always buy when others want to sell.
I know some of those who bought at $ 20,000 and lost all their money in a few months "precisely less than a year" as the price dropped below $ 3,000.

That's true. A lot of people are always looking at BTC as an investment that can only go up, and constantly thinking that the market will always be a bull one. The drop from 20,000 to 3,000, as painful as it was, was really good for the crypto environment and flushed out a lot of the people who were only profit-based and also killed a lot of the scam ICO's that plagued the scene for a couple months.

There is no specific law governing the rise and no one would have thought we would reach the $ 1200 level before the end of the year.
What you think is a terrible deal now may be the best investment you have ever made.
Think rationally and don't let your emotions manipulate you.

Very well said, mate. I agree with this a lot - BTC is too voliate for everyone to believe it to be the best investment ever.

[sunsilk]

Your story OP is lack of your personal experience so what happened to your $250,000? did you get rekt? because the year of 2018 as you've said, it's a cold year and one of the most discouraging year for most.

I guess that $250k of yours became lower in market value if you haven't sold. But if you have sold and took that $250k, you are richer today and did the bought again last year.

[dimastegar]

Profit is still profit. We trade in the crypto world to get the slightest and highest profit. And when trading, we will not know that we can profit a few percent.

[Cryptopher]

I'd say that relatively speaking 20% profit is not too bad.

Of course there is the potential to make massive gains, but it really depends on your overall mentality towards crypto. Hindsight tells us that hodling has been an excellent means to making tremendous gains depending on your entry and exit (if you do) points.

[joniboini]

20% profit from crypto is terrible because its not easy to get profit with higher amount, just keep get profit about 5% is more enough and keep stable for every time trading.

So you're actually trying to say that a higher amount of profits is terrible because it's hard to get? Shouldn't you think about your skills hen?

Hindsight tells us that hodling has been an excellent means to making tremendous gains depending on your entry and exit (if you do) points.

If you hold shitcoins that exit scam their investors then holding is a terrible idea. People should be careful with the holding idea. It's riskier than trading in some cases.

[carter34]

People should be careful with the holding idea. It's riskier than trading in some cases.

Exactly a good point. For me it is the more risky aspect of crypto because some coins would never get to the last ATH. They will keep diminishing until fissle off. I think a convenient profit is good enough than waiting for eternity to buy a limo at one dump of a coin.