4 Things I Learned as A Bitcoin Holder
Note: Wan Fangzhong, author of this article, is a popular and prolific writer known for his creative writing. He is running a Wechat official account of wansfang.
My investment in bitcoin yielded a return of 330% in less than 20 months. Many people tweeted me asking how. Here is the whole story. I hope you can find it useful somehow.
The currency of bitcoin peaked to a value near ¥7749 per bitcoin from ¥21 with an increase of 378 times over the past six years.
When I first heard of the concept of bitcoin on February 2013, the price of bitcoin was about ¥300. There were no such big exchanges as OkCoin, HuoBi, Bixin, only some small ones that seemed unreliable to me.
Bitcoin price kept rising since October 2013: first ¥1000, ¥2000, ¥3000, and then ¥6000. It was at that time that I decided to invest in digital currency. But I didn’t buy any Bitcoin, instead, I started buying Litecoin which was more volatile but accepted by all big exchanges. At that time, people believed that Bitcoin is gold and Litecoin is silver. I bought several hundred litecoins at the price of ¥82 per Litecoin, and the price rose to ¥160 at the very next day. I put more money in it, and Litecoin price peaked to ¥260.
It came to a sudden end when PBOC, or the central bank became tougher on cryptocurrency. I found it impossible to recharge my account with credit cards and Litecoin price suddenly plunged to ¥40. My first investment in the world of cryptocurrency ended up to be a disaster.
From 2013 to 2015, the price of bitcoin kept falling. I didn’t know why, but I actually saw a big future in it.
I started buying bitcoin at the price of ¥1800 in 2015 and determined to hold bitcoin for long. Since then, I only checked the price once or twice a month, and it soared to ¥3000 in 2016. Here are my transaction records.
Bitcoin price plummeted to ¥5000 from ¥8888 for the fact that the central bank ordered exchanges to suspend bitcoin withdrawals. I figured everything would become pointless if withdrawals were suspended. Later, I sold all my bitcoins at the price of ¥7700 per coin on January 5th, 2017 and the rate of return was 3.3%.
Now I take a moment to reflect, I realize that it is all about my investment beliefs.
Stick to a long-term investing strategy.
Actually, I had been investing stocks for eight years since I was 21. I donated great time and energy. In the end, neither had I make any money or lose any money. But I was pretty satisfied about this outcome. I know some friends who stick to short term investing and ultimately lose all their investment with no exception.
No greed, no die.
The reason I lost all my investment in Litecoin in 2013 was because I wanted to earn every single penny in the market. I told myself every day:” Come on, Litecoin God. Make me rich.”
I put all my money in it and I just couldn’t afford to lose a penny. I wanted to buy Litecoin at the lowest price and sell at the highest price. I was ecstatic when the price increased and I cried like a baby when the price declined even a little bit. Now when I look back, I could not stop laughing at myself. How silly of me to think that I could predict an all-time high and an all-time low. Ridiculous!
When I started investing in bitcoin in 2015, I only used a small portion of my money and I was prepared to lose it all. When the price fell to ¥1400, I didn’t sell coins anyway. I told myself:” Chill down. It’s not the end of the world.” And moved on with my life.
Only invest in what you are familiar with.
The reason I chose bitcoin in 2015 was because I was so familiar with it. I had been searching everything about it from 2013 to 2015. I stopped buying bitcoin since January 2017 because I just don’t get it anymore. This may sound hypocritical, but I’d like to warn those newbies: do not buy bitcoin when you don’t even know what bitcoin is.
Remain clearheaded amidst a complicated investment environment.
In the world of bitcoin, there are always predictions. One day a bitcoin guru tells you the price of bitcoin will rise to ¥10000 or even ¥20000, the next day another guru tells you whoever owns 10 bitcoins will be millionaires in five years. All such predictions are bullshit.
If there is one among those stars that could guides you through the dark unknown, that’s yourself! Whoever say they can predict the accurate price of bitcoin is talking nonsense. How can you predict the future price of bitcoin when you cannot even know what will happen tomorrow?
Have you ever thought of Mt. Gox would go offline?
No matter what you do: investing in bitcoin, stocks, gold, or taking an exam or being in a relationship, do not take it as gambling, or a game of luck. Do not believe in stories about getting rich overnight. You have no idea what these people have gone through to be successful.