In crypto a lot of the mentality drifts towards the get rich quick scheme. when Lambo?!? While getting in before a huge run is great, its not always going to happen, and its not the only way to get rich.
When I was a kid I was always facinated by the idea that if you start with one penny and doubled it every day for a month you would have over $5 million dollars.
What I am talking about is small gains made through trades every day compounding over time. I am sure you know of the idea, I just want to lay it out for you, because once you actually see the possibility its very enticing.
Since most trading is done against bitcoin we will use that as our means of calculation. Lets start with a small ammount of .01 BTC roughly $100. Lets plan on gaining 3% 5 days of the week for a whole year, that gives us 260 trading days.
- Day 1 .01 x 1.03 = .0103
- Day 2. .0103 x 1.03 = .10609
- Day 10 = 01343916
- Day 30 = . 02427260 more than doubled already
- Day 50 = .04383901
- Day 80 = .10640879 10% of a bitcoin!
- Day 100 = .1921861
- Day 150 = .8425259. 😲😲😲
- Day 200 = 3.6935543 😲😯😮🤑🤑🤑🤑🤑🤑😮🤑
- Day 260 = 21.76095652
Wow, that is quite a return on $100, at todays BTC price that is roughly $200,000. Now is this 100% possible? Yes and no I suppose. The two biggest problems here is actually gaining the 3% everyday, and at a certain point liquidity.
Full disclaimer I have not done this myself, I am however working with a very small initial investment so this does appeal to me. If I were to take this approach I would follow this procedure.
- Find coins with this highest volatility and high trading volume
- Always look for the bottom of the current trend before you enter the trade
- When entering trade have a strict plan and stick to it, like setting a sell order at 3% gain
- Keep losses small, with a tight mental stop loss
Happy trading!
this is not financial advice