09.12.2021

The investor who bought the Ethereum cryptocurrency ETH at a rate of $ 2 sold all the coins

In 2016, a social Reddit user under the pseudonym FollowMe22 made what is arguably the most rewarding investment of his life. Then he acquired a huge amount of ETH coins shortly after the start of the project.

At that time, the price of the cryptocurrency reached the level of $ 2, and today Ethereum is valued at at least $ 1,180. Against the background of the current growth of the cryptocurrency market, the user made the final decision to get rid of all the remaining coins. And in addition, he told what he would do with a profit.

To begin with, let’s recall that long-term investments in the cryptocurrency niche really bring incredible returns. For example, buyers of Bitcoin for just one dollar in 2009 – that is, immediately after the launch of a cryptocurrency project – eleven years later could sell their reserves for at least twelve million dollars. And this is not surprising, since BTC has become the most profitable asset of the previous decade.

Against the background of such stories, investors developed a hodl strategy – that is, long-term ownership of a cryptocurrency. Adherents of this tactic hold coins for many years and do not pay attention to large crashes and prolonged periods of market drawdown. They are ready to endure several years in order to repeat the success of other investors and no longer need money.

This is exactly what the Ethereum fan has achieved, who learned about the blockchain shortly after its launch.

How to invest in cryptocurrencies

A fan of cryptocurrencies shared his story on Reddit. Here is his line, in which he voiced the details of what happened. The quote is from Cointelegraph.

I invested all of the 2016 tax refund money and put in a few hundred dollars when I could. I didn’t buy a car, but rode my bike to work to save money. I remember at the time that I was counting on Ethereum’s 100x growth with a 1/3 probability, so in my opinion there was an asymmetric difference between risk and reward.

That is, he deliberately saved money and invested it in cryptocurrency, relying on the growth of rates in the long term. As you can see, this plan worked perfectly.

The user noted that he sold “most” of his coins during the 2017 bullish trend. However, he kept the remaining ETH until January 2021, with which he said goodbye the day before.

He noted that the average return on his investment was 14,900 percent. Now the investor is 27 years old and he recognizes himself as financially independent. He now plans to buy a home for his parents later this year.

Another commenter on this thread found the first ever post from the u / FollowMe22 account detailing the latter’s initial intent to buy and hold ETH in the long run. Here is the earliest user post.

I want to buy about 250 ETH, but I am new to the world of cryptocurrencies and am not very good at it. I read a lot about Ethereum subreddits, but before trading on Kraken, I wanted to get feedback from traders, because there are not many messages here specifically about buying ETH with dollars. I really plan on holding ETH for a long time.

If he really bought 250 ethers and sold them over a thousand dollars, then now his earnings on cryptocurrency can reach a quarter of a million dollars. At the same time, the guy could clearly increase the planned investment volume, as is usually the case in the industry.

We believe this story is not just about a man who became financially independent due to long-term investment in cryptocurrencies. She confirms that the blockchain asset industry can really change lives for the better – especially if the investor approaches his investment responsibly and with understanding. Perhaps Bitcoin or other coins will no longer provide the same percentage of profitability as they did immediately after the launch of their networks, but they are still able to grow. In addition, the niche is only at the beginning of its development, and its final list of applications has not yet been found.

Therefore, it makes sense to contact cryptocurrencies. At a minimum, people should familiarize themselves with the basics of decentralization and understand what opportunities it provides. This is especially true against the backdrop of the actions of governments and central banks due to the pandemic.

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