Cryptocurrency

[Steven Knoetze (sk27)]

I have actually been in Bitcoin since July of 2017 and have quite a good understanding about the space  . I have completed around 7 courses since then

 

What's the total invested amount that I currently have in the space of my hard earned cash I hear you ask? - Currently sitting on R34.00  . Biting my nails and hoping to re-coup my losses one day 

 

How do you become a millionaire in BTC?

 

Invest a billion.........

[RobertWhitehead]

No, you do not have to invest that large amount (but it does help  ). 

 

THIS IS GOING TO BE A LONG @SS MESSAGE BUT I WILL EVENTUALLY GET TO MY POINT  .

 

Unfortunately lots of folks take large amounts of cash and just invest it into something like BTC or any other market for that matter without fully understanding the fundamentals behind it. 

 

If we look at "bubbles" from history - Tulip mania, The South Sea bubble, The Mississippi bubble, The Brittish railway mania, Dot Com bubble etc etc etc. It all has one thing in common, its driven by human emotion: Fear & Greed.

I'm not saying that BTC and the crypto space is a bubble, the block chain technology behind the market is revolutionary and will change the world as we know it going forward. 

 

What I am saying is that by understanding the fundamentals and knowing where the market is heading you can definitely make money. I can explain this statement by showing the below mentioned graph. 

 

This is a graph of the price movement on a weekly time frame of BTC since September 2017. So I will now quickly demonstrate my point, in Sept of 2017 BTC hit an "all-time" low of $ 2 817.00 before shooting up to an "all time high" (ATH) of $ 19 798.68 in December of 2017. Now why did BTC drop to a level of:

$ 2 817.00? Easy, human emotion - China banned all crypto trading on that day and China made up 30% of the market at that time. So people got fearful and sold their positions hence pushing the market downwards. Then on the flip side, why did BTC run to 19k between Sept and Dec of 2017? Simple, they introduced a futures market where other bigger players can trade the underlying asset without physically owning it. This allowed for new players to enter the market without having to go onto an exchange and buying a piece of BTC. This one catalyst was not responsible for total price movement, but it definitely helped to fuel the parabolic rise we saw. The next human emotion came into play once BTC went from $ 2 817 to lets say $ 13k - Greed. People started jumping in and invested into it without understanding the fundamentals - they just threw money after it and some folks only invested once BTC got close to the 19k level. That means that those folks either lost money and or are still holding onto the coins they bought for such a premium. 

 

So to answer your question:

 

How do you become a millionaire in BTC?

 

Invest a billion.........

 

You can become a millionaire by doing lots and lots of research about the space as well as learning technical analysis. 

 

Let me put my above mentioned statement into numbers: 

 

As an example, lets say you invested R 1 000.00 into the space when BTC got to $ 4 500 in Oct, (I did not go with the $ 2 8k level because one can never time the market exactly so I gave a couple of weeks and upward movement before making a purchase). 

 

Now you then monitor the market and price action over the period up and till December and you notice that the market is going "Parabolic" and the one side of an Eiffel Tower is being formed. So you decide to sell your BTC holdings at $18k and go back into Tether (a stable coin pegged to the $ on a 1 to 1 ratio). Again, you'll notice that I did not say that you sold at the top because no-one knows where that is either. 

 

By doing this you've turned your original R 1k into R4500 (this is not 100% accurate because there's other factors that has an effect on the price as well i.e ZAR to $ rates, exchange transfer fees but for this example I will use a straight conversion). This happened between Oct and Dec of the same year - 450% gain in two months. 

 

Fast forward now from the 18th of Dec up and until the 22nd of Dec: The price of BTC has now gone from 19k down to 11k and after looking at the technicals you see that BTC is ready for another rally. You then take your R4,5k and invest it at lets say $13k, you then allow it to run before selling again at $15,5k (17% gain between 23 Dec and 26 Dec) - You now have: R 5 265.00. You then buy at a level of $12k on the 30th of Dec and sell on the 5th of Jan at a level of $16k (25% gain) - You now sit on R 6 581.00.

 

I can carry on from Jan 2018 up until now but ya, that's how you become a millionaire in the space 

 

 

[DieselnDust]

yip its alot of work but can be lucrative if you know what you're doing.

[Rocket-Boy]

No, you do not have to invest that large amount (but it does help  ). 

 

THIS IS GOING TO BE A LONG @SS MESSAGE BUT I WILL EVENTUALLY GET TO MY POINT  .

 

Unfortunately lots of folks take large amounts of cash and just invest it into something like BTC or any other market for that matter without fully understanding the fundamentals behind it. 

 

If we look at "bubbles" from history - Tulip mania, The South Sea bubble, The Mississippi bubble, The Brittish railway mania, Dot Com bubble etc etc etc. It all has one thing in common, its driven by human emotion: Fear & Greed.

I'm not saying that BTC and the crypto space is a bubble, the block chain technology behind the market is revolutionary and will change the world as we know it going forward. 

 

What I am saying is that by understanding the fundamentals and knowing where the market is heading you can definitely make money. I can explain this statement by showing the below mentioned graph. 

 

This is a graph of the price movement on a weekly time frame of BTC since September 2017. So I will now quickly demonstrate my point, in Sept of 2017 BTC hit an "all-time" low of $ 2 817.00 before shooting up to an "all time high" (ATH) of $ 19 798.68 in December of 2017. Now why did BTC drop to a level of:

$ 2 817.00? Easy, human emotion - China banned all crypto trading on that day and China made up 30% of the market at that time. So people got fearful and sold their positions hence pushing the market downwards. Then on the flip side, why did BTC run to 19k between Sept and Dec of 2017? Simple, they introduced a futures market where other bigger players can trade the underlying asset without physically owning it. This allowed for new players to enter the market without having to go onto an exchange and buying a piece of BTC. This one catalyst was not responsible for total price movement, but it definitely helped to fuel the parabolic rise we saw. The next human emotion came into play once BTC went from $ 2 817 to lets say $ 13k - Greed. People started jumping in and invested into it without understanding the fundamentals - they just threw money after it and some folks only invested once BTC got close to the 19k level. That means that those folks either lost money and or are still holding onto the coins they bought for such a premium. 

 

So to answer your question:

 

 

You can become a millionaire by doing lots and lots of research about the space as well as learning technical analysis. 

 

Let me put my above mentioned statement into numbers: 

 

As an example, lets say you invested R 1 000.00 into the space when BTC got to $ 4 500 in Oct, (I did not go with the $ 2 8k level because one can never time the market exactly so I gave a couple of weeks and upward movement before making a purchase). 

 

Now you then monitor the market and price action over the period up and till December and you notice that the market is going "Parabolic" and the one side of an Eiffel Tower is being formed. So you decide to sell your BTC holdings at $18k and go back into Tether (a stable coin pegged to the $ on a 1 to 1 ratio). Again, you'll notice that I did not say that you sold at the top because no-one knows where that is either. 

 

By doing this you've turned your original R 1k into R4500 (this is not 100% accurate because there's other factors that has an effect on the price as well i.e ZAR to $ rates, exchange transfer fees but for this example I will use a straight conversion). This happened between Oct and Dec of the same year - 450% gain in two months. 

 

Fast forward now from the 18th of Dec up and until the 22nd of Dec: The price of BTC has now gone from 19k down to 11k and after looking at the technicals you see that BTC is ready for another rally. You then take your R4,5k and invest it at lets say $13k, you then allow it to run before selling again at $15,5k (17% gain between 23 Dec and 26 Dec) - You now have: R 5 265.00. You then buy at a level of $12k on the 30th of Dec and sell on the 5th of Jan at a level of $16k (25% gain) - You now sit on R 6 581.00.

 

I can carry on from Jan 2018 up until now but ya, that's how you become a millionaire in the space 

Its an unregulated "exchange" so it gets bullied and messed with all the time by really big players. Those big players are happy for normal people to dabble and make a little money, but if you think you are in the know with trends then you are mistaken, its not a trend based market.

[RobertWhitehead]

True, the "whales" as they're know as in the market does have the ability to move the market quite substantially in a short space of time. 

 

Yes, the market is not dominated by trends alone but it does have an effect. Back in 2017 any positive and or negative news in the market moved the price by as much as 10% in one go. I agree that my 15 min typing session did not include all the factors to take into consideration and was not a complete "blue-print" / "how to" guide to successfully trade in the space.  

 

Its an unregulated "exchange" so it gets bullied and messed with all the time by really big players. Those big players are happy for normal people to dabble and make a little money, but if you think you are in the know with trends then you are mistaken, its not a trend based market.

[Jewbacca]

Oh dear..... I opened a can of worms didn't I?

[Steven Knoetze (sk27)]

Its an unregulated "exchange" so it gets bullied and messed with all the time by really big players. Those big players are happy for normal people to dabble and make a little money, but if you think you are in the know with trends then you are mistaken, its not a trend based market.

 

Jip, the big players drive it by creating demand to push up pricing and when it suits them they then crash it.

All the while buying low and selling high......

Edited August 29, 2019 by Steven Knoetze (sk27)

[greys]

that's true. I started investing in crypto in 217 but I think it is still quite profitable for investment. I found info at bitcoin internet about crypto games where I can win some coins while playing. They offer bonuses for new players so i'm going to try my luck too.

Edited October 9, 2019 by greys

[Mopkop]

Been here since 2016, got burned in a scam or 2 because I got greedy and wanted the gains ASAP!

 

Now im holding, as I believe the future is going to be digital. Just got some more BTC yesterday actually.

 

I dont think there is a perfect time to get into crypto. Retrospectively its always easy to say "If only"

 

Dollar cost average and youre good to go. You wont see 500x gains like in 2017 but there is money to be made. 5x on BTC alone was excellent from Feb to June this year

 

just my 2c

[scotty]

Get a government tender, that will beat any investment. 

[IceCreamMan]

Blimey , these lads should be in the government 

 

South African brothers vanish – along with R51 billion in Bitcoin (mybroadband.co.za)

[EddieV]

On 6/24/2021 at 10:01 AM, IceCreamMan said:

Blimey , these lads should be in the government 

 

South African brothers vanish – along with R51 billion in Bitcoin (mybroadband.co.za)

mmm …. Think the investigative journalism is a bit “off” here. The numbers don’t make sense. While I’m sure they got away with a lot, I think somewhere between the copy-paste journalism we see these days – someone made a typo or misunderstood the source article.

It's sad none-the-less. It was probably a "ponzi" from the start, and had nothing to do with bitcoin or cryptocurrency.

[Comrade J]

And everyone is ignoring the Tax implications of BITCOIN, those who do not disclose, are in a small heap of trouble.

If you bought and haven't sold, you are okay, and will pay the tax when you exit.

To traders, this will deemed to be your income, and push you into a much higher tax bracket.

All the banks have to report the purchase of Bitcoin etc to FIC and SARS.

SARS have started looking.

[nikjas183]

check this article, if u curious about crypto payment , it might help u https://www.investopedia.com/tech/bitcoin-payment-services-introduction/

[Steven Knoetze (sk27)]

Good time to buy seeing as how the crypto's are recovering from quite a dramatic crash........

 

[BaGearA]

bought back in a little last week and its already gained much more than i thought 

 

 

will try to hold onto this longer than my last 😂