How I turned $200 into $40,000 in less than a year. In 2024, I'll pump it to $100,000!
That's a 200x return that will turn into a 500x. This is a real example only possible in crypto.
The best part? I am not alone. There are many other people doing the same as I write this - more on that later. Crypto is unique in providing so many opportunities. The only requirement? Persistence.
This post is about my journey with some key lessons I learned along the way. You may think I was lucky, but I have a different take on that. You know why? You get lucky only after you fail a few times first. Let’s explore that further.
In mid-December 2023, the Bitcoin Frog that I bought for $200 in May sold for 0.9 BTC or just short of $40,000. That’s a 200x in USD terms or 112x in BTC terms. This is one of my best trades which I plan to turn into a 500x.
I respected my plan after I clicked buy and never diverged. It paid out big. But my plan is not over yet - keep reading.
Let’s take it step by step how I arrived here in the first place.
A good trade is not the one where you end up profitable, no. A good trade is the one where you respected your plan and executed it perfectly. This is such an example.
When I bought this Bitcoin Frog, I made the following assumptions:
Bitcoin NFTs are a new emerging narrative & being early could pay out big
Ape jpegs on Ethereum sold for half a million dollar in the last bull market
We are at the start of a massive new bull market
Risking a few hundred dollars on such an asymmetric bet was worth it
With that in mind, I looked at the available Bitcoin collections on Magic Eden and the Bitcoin Frogs collection stood out. Why?
First, the art was cool. Second, they were avatars or profile pictures which can create a personal attachment = higher prices. Third, they were a 10k collection, similar to the most successful collections on Ethereum.
The last point is important because a collection needs to be big enough to create enough liquidity and demand, but also small enough to create a niche and pump the price. 10k collections seem to be the sweet spot.
The below picture shows the before and after. The first image is from our Patron Pro discord channel where we share our private alpha - I posted that in May. You are welcomed to join us if that interests you (see Unlimited plan subscription).
Why did I buy THIS frog?
Anything gold related has a premium in the NFT space. My Bitcoin Frog had a golden hoodie with a BTC logo and golden glasses. I knew this would command a premium price later on.
Initially, this frog was listed for $500, but the floor price of this collection was $50 at that time. I didn’t buy it at first since a 10x premium felt too much.
Then the seller cut the price by half = instant buy. The lesson here is to scout for quality and be patient. See pic.
As soon as I bought the frog, I listed it for sale at 0.9 BTC. Some may think I was crazy to list a $200 frog for so much money.
But I had a plan!
I knew the bull market was just starting. There was potential here and I was in no rush. I knew time was on my side and in the worst case scenario I would lose $200. Nothing big.
I purposely listed the frog under 1 BTC because as a trader I know how psychology works. I wanted my frog to sell later on. I am here to make money, not inflate my ego. Plus, 0.9 BTC felt just right looking at my X name. 😅
Then, I waited and actually forgot about the frog for a while. Which brings me to the next point.
During the last bull cycle, I bought several Ethereum NFT collections. But since I was late in the boom, I bought a falling market. The hype was gone. I lost money, but I learned some valuable lessons.
First, avatar collections do better and command a higher premium. Second, any NFT that can be diluted easily will just crash in price faster. Third, artists can get greedy and issue more NFTs at your expense as a holder. Lastly, NFTs crashed like any other altcoin in a bear market (-90% to -99%).
My lessons from that were pretty straightforward - buy a booming market and don’t hold NFTs long term. Take profit and GTFO. I had to learn that first before I persisted and struck gold. That money was well spent!
Then the Bitcoin price started to move higher and higher and since the frogs are on its network, they did the same. Soon, the floor price of this collection hit $1,000. I was 5x in profit! Some people told me I should sell.
I didn’t. Why?
It was an asymmetric bet.
I was ready to lose $200 and be proven wrong than miss on being right.
I stuck to my plan. Some time later, the price of the collection kept doubling. It went to $5,000, $10,000 and then to $20,000 or 0.5 BTC. Each time faster than before - a logarithmic increase.
When I saw the price move up so fast, I hesitated if to change it higher as shown in the above picture. Someone also made a bid for 0.5 BTC, then cancelled it. This was getting close as my price was only a 2x from the collection floor.
Then suddenly, someone else FOMO-ed and bought my frog for 0.9 BTC, twice the floor price! WOW. It sold. I was left incredulous for a few minutes.
My original plan worked flawlessly, but much faster than I could have imagined. This is a typical crypto story.
It’s easy to go off-piste when things start moving fast. That’s why, making a plan when you are calm and before things get crazy is crucial (use bear markets for that!). Make it realistic and refrain from changing your plan until you have clear signs your original assumptions were wrong.
As the floor price kept doubling, my original assumptions were being validated, again and again! There was no need to change my plan. It was working.
With the first phase of my plan completed, it was time to activate phase two.
WTF is phase two?
When I bought the frog, my goal was to sell it around 1 BTC. This was phase one. Phase two is to ride that Bitcoin until it hits six digits or over $100,000.
If phase two is successful, I will turn $200 into $100,000. Or a 500x. At the end of the day, this is a trade. I am not here to diamond hand. A successful trade implies to buy and to sell.
Why do I plan to sell at six digits?
Because I believe Bitcoin has a very good chance to hit such a price level between 2024-2025. I don’t know how high it will go, but once the price hits that level I will start taking profit and dollar-cost average (DCA) out of this position by selling that Bitcoin.
The risk-reward of buying or holding Bitcoin as it moves into six digits and goes higher will get worse and worse. I don’t plan to hold at that point, but take profit across all my positions and de-risk into gold and USD.
I will buy more Bitcoin with my profits during the next bear market. This only applies to my trading stack. I don’t touch my long term Bitcoin bag. You never sell that.
Once I sell that 0.9 BTC. My job is done. I respected my plan. That’s what I call a successful trade. It’s not about how much money you make or lose. If you respected your plan, that was a good trade.
What happened to my frog?
The new owner decided to list it for 2 BTC. I’m sure he can do a 2x if BTC hits 100k or more. Either way, profit is profit, no regrets whatever happens.
But this is just ONE story. Crypto has many more like this one - see next.
Just today, someone posted a similar trade by selling NodeMonkes, another collection on Bitcoin. Lucky or not, only crypto can offer you such opportunities.
If you have time to spend, do everything you can to learn about this space, build knowledge, experience, and in time, it can be reflected in your profits.
The best time to make money in crypto is by selling in a bull market. The best time to plant the seeds of your lucky trades is during a bear market. Bull and bear markets work in tandem and you need to master both to be successful as shown below.
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