A pseudonymous trader known for transparently posting his trades on Twitter is sharing his secrets on how he quickly turned a small amount of BTC into $100,000.
In an episode of the Market Meditations podcast hosted by crypto trader Koroush AK, SalsaTekila highlights how the power of compounding gains allowed him to become one of the leading traders in the Bybit trading competition.
“The biggest point is that those competitions are not necessarily your typical trading journey. It’s oftentimes you have to take big risks relative to a small account. You have to play your cards right. Start with the minimum amount that they allow you to start with and try to build something that will compound into huge ROI (return on investment) percentage… If you start with 0.1 BTC, then you can scale the size pretty quickly if you get a nice win streak.”
The crypto strategist also explains the role that risk played throughout his journey en route to growing 0.19 BTC into eight BTC in just three weeks.
“You have to start taking big risks from the start because the winners, as we have seen, will have 4,000% ROI. So if you’re trading your typical 2% account risk per trade, you’re not going to make it into the leaderboard. No chance… Basically, you have to take huge risks.”
In SalsaTekila’s eyes, winning Bybit’s trading competition required more than just financial risk.
“The big opportunity cost was mostly time. If I went bust, I would have spent a lot of time trying to grind my balance up. Maybe lost 0.1 BTC which is not much [or] 0.2 if I redeposited. But overall it was not a big money-risk. It was mostly a time-investment risk.
At the end though, when I was very close to being the first, that’s where the money risk actually came in.”
As for why SalsaTekila trades with such transparency, the trader tells the Market Meditation crew that he does not do it for clout.
“I think the trait the most traders need to succeed is honesty towards themselves and owning their decisions and accountability. You need to be accountable for your decisions and you need to be honest with yourself.”
Featured Image: Shutterstock/Tithi Luadthong