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Crypto-millionaires: Underdogs rise to the top

The surge in cryptocurrency value enticed many to invest in it. Many have made millions of dollars, but at the same time, precautions must be exercised.

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Cryptocurrencies are on the rise lately, and they ended 2017 breaking through the ceiling as Bitcoin and Ether both skyrocketed to high levels. People initially refused to invest in them because of the potential danger they bring to the wallets, but their minds may change, with some flocking with the intention to ride along with their upward trajectory.

For those who do not know, cryptocurrencies are digital currencies that utilize cryptography to enhance their security. Because of cryptography, it would be hard to accomplish the act of counterfeiting. One should also know that governments and banks have no jurisdiction over them because they did not issue this particular kind of currency.

The New York Times talked personally to those who made investments in cryptocurrencies to see where their investments got them and chronicled their stories. It showed that they indeed have improved their lives significantly.

James and Julian Spediacci

Twin brothers James and Julian Spediacci purchased ether when it was only worth 30 cents. But when ether flourished, they also rose with it, and they now operate a popular cryptocurrency trading community.

Before the twins arrived at this peak of their lives, James posted a status on Facebook urging his friends to invest in ether. Most people ignored his post, and it received one like.

Jeremy Gardner

A 25-year-old investor named Jeremy Gardner co-founded a commune for cryptocurrency investors and entrepreneurs named the “Crypto Castle.” When newcomers come in, he gives them a house tour and teaches them the ropes.

Gardner focuses on initial coin offerings (ICO) and even ushered in one for Augur, a startup dedicated to providing market forecasts with blockchains. He developed and sold “Augur tokens.” The sales went high pretty fast, and Augur even reached a point where its value went beyond $1 billion.

Bitcoins.

A lot have made millions investing in bitcoins and cryptocurrency early. (Source)

Aside from ICOs and Augur, he works as an editor-in-chief of a cryptocurrency magazine named Distributed, which is released annually. He is also working on fundraising for Ausum Ventures, his hedge fund, with a target of $75 million.

Grant Hummer

There is also a similar house near the Crypto Castle which people dubbed as the “Crypto Crackhouse,” and SF Ethereum Developers Meetup co-founder Grant Hummer reside there. Along with his co-founder, Hummer invested $40 million, which was also accumulated through cryptocurrency, in Chromatic Capital, a hedge fund they established.

Despite earning a lot of money from their ventures, his room does not boast the wealth he has as it is only filled with a bed, a futon and a TV.

Daniel Colosi and Stephen Lenoci

In the Australian city of Sydney, The Daily Mail reported that friends and investors Daniel Colosi and Stephen Lenoci made their investments in cryptocurrency in 2017 after spending a year and a half watching its performance in the market.

Colosi recalled his first investment and said that he started investing when bitcoin was valued at AU$5,100, which is equivalent to £2,942, and a few months later, the virtual currency grew to its current status.

They work in construction projects and mines in Sydney, but they intend on moving to Thailand this February to establish their bitcoin business and become millionaires.

Colosi urges those who are interested in cryptocurrency investments to make their move, saying that “it’s not too late to get into now, but it soon might be.”

Some tips for smart investing in cryptocurrencies

If their stories inspire you to finally invest in cryptocurrency, you might as well heed these following tips to make smart investments, per Forbes.

1. Keep an eye on the bots.

Some people in the cryptocurrency market make use of bots in order to make some unofficial changes in the market such as causing prices to drop and return them to the original level a few minutes later.

If you fell into the bots’ trap, consequences can be severe as your investments can suffer from it. For prevention, it may be challenging to detect one, but it helps to keenly observe the trading indicators in the market to see the patterns and recognize any atypical behavior.

2. Use your risk tolerance as your basis when assigning assets.

You may also want to set a certain amount as a stop-loss level so that you will be safe when there are financial collapses. Once that is done, you can proceed in creating your coin portfolio and allocate your assets properly.

It is suggested that if a coin is in a safe or stable status, you can allocate a big portion to it, and if a coin is very volatile yet can bring bigger returns, you can give a small percentage to it, just to be safe.

3. Do not give in to overtrading and FOMO.

Finally, investors sometimes go overboard with their trading and also experience the fear of missing out or FOMO in buying new and hugely publicized coins. Similar to instances when movies are overhyped but ended up being a disappointment, you must endure FOMO so that you will not be pulled down once these coins have fallen.

When it comes to overtrading, it would be wise if you wait for a while before acting on the sudden or slight movement in price. The performance of a coin might not continue in the same state for a long time, so it would be best if you can observe first and see what will happen before finally deciding to act in order to avoid pulling your profits down.

Arturo Garcia is a Peruvian-Filipino financial journalist. He is a self-confessed football fan. He started out as a political writer for a local daily in Peru, but now focuses on tech and business. Arturo studied Economics at Unibersidad de Lima and currently lives at an apartment in Salinas Valley, Northern California, exactly 725 meters from John Steinbeck’s hometown.

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