Investing in Bitcoin: the people who get rich overnight often burst their positions overnight
On March 1, local time, a research report issued by Citibank believes that Bitcoin is at a critical node: Either it will become the mainstream digital currency adopted in international trade, or it will collapse in the wave of speculation.
In the beginning of 2021, Bitcoin attracted enough eyeballs. At the beginning of January, the price rushed higher and higher, and the price rushed to above $40,000.
The cumulative increase in the first seven days of the year was as high as 38%, but Bitcoin did not hold the $40,000 mark for a long time.
In February, Tesla entered the game and the traditional financial giants opened their arms, which stimulated Bitcoin to rise again. However, the cold water of the US Treasury Secretary Yellen made Bitcoin plunge again. Just last week, the price of Bitcoin once stood at a record high of 58,000 U.S. dollars, and the current price has cut about 8,000 U.S. dollars (as of 7:52 on March 4th, Beijing time).
Whenever Bitcoin rides on the “roller coaster”, some people regret not getting on the car, some are fortunate to step on it accurately, and some lament that they can’t get away. After that, some people will continue to chase the myth of getting rich overnight, some will continue to follow the investment logic of Bitcoin, and some will continue to wander outside the circle.
A reporter from “Daily Economic News” interviewed three individual Bitcoin investors and told about the ups and downs of their currency circle.
Story of a Bitcoin Gambler
He is a gambler. Liu Yang, 24 years old, Shanghai, media industry
He admit that he is a gambler, the kind of person who is willing to take a fight to become a motorcycle.
In 2015, I am about to graduate from high school. My mom’s friend worked in a securities company, so I urged my mom to open an account and used her account to enter the stock market.
At that time, he was catching up with the military parade. he thought it would be good for military industry stocks. So he chose a few military industry stocks and caught up with the peak of 2015. He made some money and bought a new mobile phone and a pair of Air Jordan sneakers.
After the bull market in the first half of 2015, he temporarily put down the stock market. In 2018, he came into contact with Bitcoin from a friend. At that time, the price of Bitcoin was still more than $3,000. His friend said this was a bargain hunter and asked me to hold it, but I was not sure at the time.
In 2019, the investor entered when the price of Bitcoin reached more than 40,000 yuan. He had two coins in his hand at that time. It was sold in December of that year and he earned more than 10,000 yuan.
The investor also participated in the latest wave of quotations. He bought it on the advice of a senior. The seniors work as real estate agencies in Shanghai, and those who do high-end real estate always hear some strange news from the rich. He told him that Bitcoin must have risen to 50,000 U.S. dollars before the Spring Festival, and later it rose to 50,000 U.S. dollars. He admire his senior.
Around January 20th of this year, the investor entered when Bitcoin was approaching $40,000. Because he likes to gamble. He opened a contract (buy call options) and never opened a leverage lower than 20 times.
Sometimes when you add 125 times the leverage, Bitcoin rises by 1%, and I double it by 1.25 times. They are invested in tens of thousands of tens of thousands, and sometimes he makes a profit of 10,000 to 20,000.
But my margin was very low. It fell by 0.5% and forced me to liquidate the position. After several times, I lost about 20 (ten thousand) in this wave and about 80 (ten thousand) for seniors.
This money was originally lent to to by his relatives for the down payment, but fortunately, they (relatives) did not need him to repay the money for the past three years.
Now he understands it. He doesn’t think he should do anything about Bitcoin.
Winning is only a dozen or two hundred thousand. It can’t change your quality of life, but it will also affect your mentality.
The investor recently invested some money in A-shares, and his friend told him that this year, it can increase by up to 30%. But before he fought Bitcoin, it could rise by 30% in one day, and the leverage could rise by 200%, and it would double that day.
In this way, you will have no patience, and your patience will be exhausted. For investment, it affects the mentality too much.
The investor originally wanted to buy a Kawasaki motorcycle when he won, and paid the deposit, but now he doesn’t have the balance on hand.
In March, he received a private job of 50,000 yuan, and plans to make more money. He still have to buy a motorcycle.
He says ‘I don’t understand Bitcoin’
Happy Ears, 32 years old, Beijing, Internet Product Manager
The investor heard that Bitcoin is considered very early, probably in 2011, because he was a major in engineering and had always been concerned about things in the technology industry. But at that time there was no money and no investment was made.
In 2015, he started working as a product manager for an Internet securities company, and since 2017, an investor started to invest in value with my heart.
The earnings of US stocks and Hong Kong stocks have been pretty good in the past few years, but he had never understood Bitcoin.
But it was also at that time, just as Bitcoin rose sharply in the last wave, and the investor really started to enter the currency circle.
At that time, all blockchains were very hot, and a large number of weird currencies began to conduct ICO (Initial Coin Offering).
At that time, an investor was still working in an Internet securities company, and I paid a lot of attention to news in this regard. He bought some ETH (Ethereum), and then used ETH to invest in a coin that I was planning to issue, about 1500 dollars.
At that time, an investor bought hadn’t started to go on the market, and the other party said that he could choose to keep the coin in his hand or return the ETH that he had invested. He chose to return it.
When I returned it to me, ETH had increased by 5 times. But after a month, the coin I invested in was issued overseas, and it went up 100 times as soon as it went public.
Later, an investor participated in the issuance of some coins and made some money. Wasn’t it because ICOs were very hot at the time, and there was a huge demand for ETH.
He changed all the digital currencies on my hand to ETH, but in 2018 they all changed to Bitcoin. Because he thinks that if you compare precious metals, Bitcoin should be gold, and other coins may be similar to silver.
It was also during that time that an investor started to make more value investments in US stocks and Hong Kong stocks. It was Buffett’s way of looking at company performance.
What he thought at the time was that he would not invest heavily in digital currency anyway. If he wanted to buy it, he would have to spend a lot of time on it, so he gradually became less involved.
The most recent time was around May of last year. At that time, the production of Bitcoin was halved. When the price was about US$5,000 to US$10,000, an investor bought some more bitcoins. At that time, it was mainly based on two considerations.
First, he wanted to speculate, because every time Bitcoin production was halved, there would be a wave of rise.
Second, the global epidemic was very serious at the time, and I considered Bitcoin as a safe-haven asset like gold. To use, he bought it relatively heavily and invested hundreds of thousands.
When the price rose to the range of US$15,000 to US$20,000, an investor liquidated all the bitcoins, and made a cumulative profit of about 50%. Later, he didn’t touch the digital currency again.
Many people think my advantage in investment lies in the stocks. It is relatively safe to buy, and the digital currency is still incomprehensible.
People also follow the market news feeds of Bitcoin every day, knowing that it has risen sharply afterwards, but don’t regret it either.
Some friends around us have made a lot of money. They give some of the logic behind it, but notnecessarily anyone’s logic is always valid.
Anyway, this matter is not within my scope of cognition. If the experience and logical reasoning methods I have now allowed me to go back and make another choice, I might still be cleared up early.
In the future, if there is a suitable price, I will still hold a small amount of Bitcoin when I have spare money. I think people who are serious about digital currency still have beliefs and have a set of cognitive systems and logic behind them. I don’t have them, so I am more conservative in this regard.
“Those who get rich overnight often also burst their positions overnight”
Authentic Tutou 31 years old, Shanghai, a major Internet company.
An investor first invested in Bitcoin in 2013. I bought 20 Bitcoins and 600 RMB each through Taobao.
At that time, many people were doing industry research work, and saw a Bitcoin science article on an electronic product forum. 99% of the responses below were mocking and questioning.
But people read it carefully and checked a lot of related materials, including the white paper by Satoshi Nakamoto (the founder of Bitcoin). After reading it, people think this is a very, very high potential industry.
In 2015, I started to open a position in Bitcoin again. At that time, the price was a few thousand yuan. In 2017, when Bitcoin rose to 20,000 yuan, I completed the last time to cover the position. I now have three-digit bitcoins in my hand, and none of them have been realized because my psychological price of bitcoins is $200,000. However, when the unit price rises to 100,000 U.S. dollars, I will reassess the situation to see if I will sell some of it.
In 2016, my parents gave money to buy a house. At that time, it was actually a good time to buy Bitcoin. I originally wanted to invest all of it in buying Bitcoin, but then I still felt that I had to separate the money for life and investment.
Investing is a marathon. There is no need to run too fast at the beginning and discard many things that shouldn’t be discarded.
There are many reasons to look at Bitcoin, including intricate analysis, but one of my conclusions is that Bitcoin may one day appear on the asset quotation card of the Lujiazui Ring Road, becoming a regular and relatively stable block. Investment products.
Wave gains of Bitcoin in the Beginning 2021
This wave of gains from January to February this year is indeed abnormal, because it has broken through the largest monthly gain in history. I think this is a bad phenomenon.
During the Spring Festival, people actually expect Bitcoin to fall by a wave, so that by the end of the year, it may be able to rise to 50,000 to 100,000 US dollars. However, during the Spring Festival, Bitcoin was stimulated by Tesla’s entry, with a single-day increase of 20%.
Many people don’t actually understand the latter situation, but I think this is a bad result, because it will take longer for the callback now.
Regarding the recent wave of ups and downs, my mentality is very calm. I also know some people in the currency circle who bought Rolls Royce after making money, but they disappeared after a bear market. In fact, there are many such things, and those who get rich overnight often burst their positions overnight.
Crypto Investors should be Self Researchers
For investment, you must be completely self-driven to explore and research. But most people prefer to be a party. I assembled my own computer to mine last year. I didn’t want to mine as much, but wanted to figure out the process. On the other hand, you cannot be a greedy person by yourself and cannot gamble.
(Note: The characters above are all pseudonyms.)
Expert talk: “For ordinary people, investing in Bitcoin means high risk”
“I have never recommended ordinary investors to invest in Bitcoin, because ordinary investors do not have the ability to bear such a high risk factor.”
Jiang Han, a senior researcher at Pangu think tank, told the reporter of “Daily Economic News”. Jiang Han agreed with Bill Gates’ previous comments: Musk can invest in Bitcoin because he has enough funds to invest in Bitcoin and bear the corresponding risks, but for ordinary people, investing in Bitcoin means huge risks.
In addition, in high-risk situations, short-term operations are also selected through increased leverage, which will cause serious risk amplification and may lead to liquidation.
In Jiang Han’s view, although Bitcoin is a digital asset with a certain value, the recent surge may be an irrational exuberance. Entered a state of almost madness”.
Due to the lack of sufficient basic support for the big rally, it is normal for a sharp correction to occur later, and the two are closely related.