Can you get rich in the world of Crypto with only a small starting pot? That's what I aim to find out and I thought I would share some of what I've learned so far. I'm sure there are plenty of similar stories out there but there is also a lot of FUD so hopefully this will help somebody on the same journey.
Following a very demotivating work review I decide to kick my ass into gear and get out of the world of work as soon as possible. A work colleague mentioned Crypto and despite being in IT for my entire career I never got my head around what was happening in this world. I did some quick reading, signed up to an exchange and bought my first coin. Right at the top of the market.
Long story short, after a brief flirtation with DOGE (I know!), trading bots (I know, I know!), day trading (I know, I know, I know!) and then DCA into a sensible set of projects I believe in, I realised I needed to accelerate my capital growth.
This then is the plan. From a starting pot of £100 I need to pay off my mortgage and get a large enough investment fund so I can work when I want to and still support my family. This put some large milestones in my path but really I wanted to see how far I could go to secure my financial future.
So what is a sensible growth rate. DeFi offers some insane interest rates but they have a lot of risk. More steady growth in things like staking would still take decades to reach my goals. I needed to be growing around 5% a week to get this done in the next 4 years which seemed very reasonable. Day trading is very high stress but swing trading over several days seemed like a good compromise.
I put in my £100 to Binance, studied a bit of basic TA and started watching for my entries. I decided to keep it to longs, no leverage and where I thought I could clear 5-10% to avoid losses to fees. No shit coins (thanks PSG and SLP), only well established coins with obvious buying signals.
So far, over two weeks I've completed 6 trades, made a profit on 5 of those and I am averaging over my target for weekly growth. I'm now sitting on stable coins waiting for BTC to settle down a little. I think this is certainly the core of a decent idea.
I've been writing down some rules as I've gone along, things I've picked up from others or that I've learned myself.
DON'T GET GREEDY
Never risk more than 3% of total capital. A 6% loss means only 50% capital in
There is no rush. Only play the good hands
Respect BitCoin, it is in charge. Don't fight the trend
Take your profits - don't hunt round numbers or keep chasing higher
Set your stop losses. Double check they are set
Don't mess with leverage
DYOR
There are lots of future questions. How will this work when I'm dealing in thousands instead of hundreds? What is the most tax efficient way to trade? What is my exit strategy? Is this sustainable over 3-4 years? Can I trust Binance, USDT, SEC, my wallets etc etc? If you have any opinions or experience with these it would be great to hear them.
And that's it. I'm sure many people here have been on a similar journey but this is my approach. It's more of an escalator than a rocket ship but hopefully I'll get there. Make sure to leave some Lambos at the dealership for me.
Thanks for reading this ShazamCrypto article, I hope you enjoyed it. I am a new writer and a I welcome comments and feedback to help me improve.