Bitcoin and other crypto-assets are both loved and loathed by traders for their epic volatility. While many have lost everything from it, others have made a fortune by getting in at the right time. So, how much would you have made if you invested $1,000 in BTC during the 2018 bottom?
That Momentous Bitcoin Bottom
Bitcoin has had an amazing start to 2020, up 44% since its yearly open price. So far, it has outperformed a vast majority of altcoins, with only a handful of decoupled assets posting higher returns.
Bitcoin’s yearly low in 2019 was $3,330, which many thought was the start of the end for the flagship cryptocurrency. However, it wasn’t as low as its bottom during the 2018 crypto winter, when the leading asset touched as low as $3200.
So how much money would you have made if you would have invested $1,000 at the absolute bottom? We’ll be using the current price of $10,328, for purposes of our comparison.
For starters, you would be up a whopping 222.75%. In terms of the US dollar amount, you would have turned that thousand bucks into $7,128. If you had deeper pockets to invest more than a $1,000, like say, $10,000, you’d have $71,280 Dollars in your trading account right now.
Trading is a zero sum game
For every sterling story of success that we hear of someone making a fortune trading Bitcoin and crypto, there is always someone on the other side of that trade that got cleaned out. A perfect example of the kind of volatility you can expect was yesterday’s XRP flash crash on BitMEX.
XRP lost 56% of its value in seconds, liquidating many traders who were long on the cross-border payment token. XRP fell from $0.32 to $0.14 yesterday within a matter of minutes, leaving many traders totally #rekt.
The Bogdanoff brothers are another meme that has sprung out of traders getting rekt during crypto winter. In crypto-trader humor, the Bogdanoffs are secret overlords who control crypto market volatility. Wojak always gets rekt trading against them. In real life, they are twin brothers and famous french actors.
If you’re trading, make sure to manage your risk, so you can make the kind of profits discussed above, and not get Bogg’d like Wojak.
How close to the 2018 Bitcoin bottom did you buy in? Let us know in the comments below!
Images via Shutterstock, Youtube @Bizonacci