Innoware’s Weekly Blog – Edition 6 – December 17, 2017
Exactly two weeks back, in Innoware’s blog on December 3, 2017, I had covered my investment in crypto currencies – especially ETH based alt coins.
Only 2 weeks have passed, but I have had some mind blowing results in terms of return on investment (ROI). So, I thought, I will cover my ROI in this blog.
If you never got to read that blog, you can access it using the below link
The Investment Methodology
Before I divulge my ROI, let me give a short recap on what I did. I already had a Coinbase/GDAX.com account. In this account, I had traded Bitcoin since it was $4,700 per BTC and had made close to $3,000 profit trading BTC. I transferred another $3,000 from my Bank of America account, which took close to 7 days to reach GDAX.com
In the mean time, I opened an Exodus.io wallet and connected it to etherdelta.com. This is not a straightforward setup, but is not complicated either. If one wants to trade ETH based alt coins and that too for free (with no fees), this exodus.io/etherdelta.com setup is good.
Next, I used my $6,000, bought 11 ETH at $450 per ETH and started transferring these Ethereum coins to my exodus.io account. Subsequently I used these ETHs and bought ETH based alt coins like COB, KIN, ERC20, LEND, SALT, DRGN, XMRG, and PFR on etherdelta.com
In all frankness, there are hundreds of ETH based alt coins and the above selection of mine were just based on a calculated hunch. I ended up investing 11 ETH or close to $5,000 of my capital.
The ROI in 2 weeks
Two weeks passed and I noticed some great things:
• My ERC20 had risen 400%
• Some of the other alt coins had risen anywhere from 25% to 60% while others had fallen up to 20%.
• In the mean time, the ETH which I bought for $450 each had increased to $700 plus
This blew my mind!! So what had happened is I could sell all my ETH based alt coins for a net profit in ETH. Then I can bring all the ETH back from etherdelta.com to exodus.io wallet and then to GDAX.com, and sell those ETHs at $711 for another round of profit.
I had 33 million KIN and 1 million ERC20, and my initial plan was to hold them for a year or two to make my millions. But on Saturday night, I changed my mind. I sold all the ETH based alt coins, transferred the ETHs to GDAX and sold them for $714 and am all cash now.
In 2 weeks, I was able to more than double my money.
In the mean time, the 3 top cryptos Bitcoin, Ethereum and Litecoin continue to rise. Had I bought and held these, I could have had an equivalent ROI. But the ETH based altcoin experiment made me realize a couple of things
• It took 7 days for US dollars to get transferred from my Bank of America account to GDAX.com
• However, transactions like buying ETH in GDAX.com, transferring ETH from GDAX to exodus.io, buying numerous alt coins in etherdelta.com and selling them, and transferring all ETH back to GDAX.com and selling them to have US Dollars again was accomplished in a matter of seconds
• I am convinced that crypto currencies are here to stay. Just like Uber, or Airbnb, battery operated cars etc. – these crypto currencies are going to change the way we transact.
• I had completed this journey end to end. Started with cash US Dollars and ended with more US Dollars cash
• In future, I will continue to make selective investments in cryptos which would involve a mix of buy and hold as well as trading strategies
• Along with Brennan, my first book was on “Trading Volatility – Using the 50-30-20 strategy”. We are now writing our next book – “How to invest in Stock Market Indexes and become a millionaire in 10 years, which we hope to wrap up by Christmas, 2017. Next would be our 3rd book on “Investing in Bitcoin and other Crypto currencies for profit”. We hope to share more strategies on crypto currency investing in that book.
Innoware @ StockTwits
The material contained in this blog is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. As an investor, you are fully responsible for any investment decision that you make.