I can understand why “Mr. Smith” wouldn’t share his real name.
He told his story to Forbes last year. It’s a model for all the wild tales of bitcoin millionaires.
At the time, Mr. Smith had about $2.6 million worth of bitcoin. And on the ride up, he had cashed out $25 million.
On the other hand, near Seoul, South Korea, resident Kim Hyon-jeong did give her name to the New York Times. Her story was different – and much more unfortunate.
If you’re thinking about getting on board an exciting, speculative opportunity like bitcoin, then you need to read this. It could make the difference between a life of incredible wealth… or crushing debt.
Mr. Smith was a software engineer with an interest in the technology behind bitcoin. In 2010, he saw bitcoin’s price soar from $0.008 to $0.08 in less than a week. That was enough to attract his attention. He bought $3,000 worth of bitcoin at a price of $0.15.
As you know, the price shot up to more than $19,000 in December 2017. But Mr. Smith didn’t make that full return.,, He had been selling all the way up. He cashed out some at $350, more at $800, and so on.
Now he travels the world, first-class.
Unfortunately, on the other side of our story, Ms. Kim took a different approach to her investment in bitcoin…
As a 45-year-old teacher with a child, she put about $90,000 into cryptocurrencies. It wasn’t just her savings either. She cashed in an insurance policy and took out a loan for $25,000. As she described it…
I thought cryptocurrencies would be the one and only breakthrough for ordinary hardworking people like us. I thought my family and I could escape hardship and live more comfortably, but it turned out to be the other way around.
The value of her holdings was down 90% as of August 2018.
One of these investors is a success, and one a failure. But it’s not just because Mr. Smith got the timing right and Ms. Kim didn’t…
When Mr. Smith got in at $0.15, he had already seen bitcoin soar 1,775% in the previous six months or so… and it would drop nearly 50% just a few weeks after he purchased. Bitcoin was a new and untested asset. It would have been crazy to predict that bitcoin would go on to peak more than 25,000,000% higher from Mr. Smith’s purchase price.
Ms. Kim invested later, in the fall of 2017, during a time when bitcoin was front-page financial news around the world. You couldn’t avoid the wave of newly minted cryptocurrency experts willing to project its price to $1 million and beyond.
Yet with such a wild and unpredictable asset, both speculations could have made money.
The difference here is that Mr. Smith bet a lot smarter. He invested a small amount for a successful professional. The technology got him excited, but he only bankrolled a small bet.
He also locked in gains along the way, taking some money – and risk – off the table as the rest of his investment continued to grow. You can do this in a lot of ways. For instance, you might sell half of an investment once it reaches a 100% gain – that way, you’re playing with “house money.”
Meanwhile, Ms. Kim made her bet completely wrong. She put 30 times more into her crypto bet than Mr. Smith did… Worse, she wagered money she didn’t have by taking on debt.
So here’s exactly what to do with your money today…
Bet, but bet small. And don’t jump blindly into speculations.
If you’re willing to speculate on crypto’s, you’ll need an expert helping you along the way. And I strongly recommended Eric Wade…
Eric knows all the biggest players in the cryptocurrency industry, and he understands the scientific technicalities in a way that only angel investors, computer programmers, and software engineers know about…
If you tried to do this kind of research on your own, you’d have to travel thousands of miles a year and spend thousands of dollars on tickets to crypto conferences where the best coins and tokens are unveiled.
Instead, every month in his research service called Crypto Capital, Eric does all that work for you. He simply hands you the names of his best crypto recommendations, along with his in-depth analysis each month, based on intense due diligence nobody else is doing at this level.
Here’s to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
February 8, 2021