Willy Woo Reveals ‘Relatively Safe’ Trade to Outperform Bitcoin (BTC) By 2-3x

Bitcoin analyst Willy Woo says that investing in crypto start-ups is a “safe” trade for those looking to outperform BTC.

In a new interview on the What Bitcoin Did podcast, Woo tells listeners that investing in some of the key infrastructure companies operating in the Bitcoin and crypto ecosystems will likely continue to produce massive returns.

Woo notes that the early investors in some crypto companies, for example, Exodus Wallet, made more than they would have if they had simply placed passive long positions on Bitcoin.

“You know, those who got in on the seed – the earliest investment rounds of Coinbase, which was a huge success –outperformed Bitcoin by a factor of 0.5, meaning they got half their Bitcoins back. My first investment in the space was Exodus Wallet in 2015 or 2016, and that outperformed Bitcoin by about 2 to 3 times. So I got two to three times my Bitcoin value back. Back then, Bitcoin was growing at an annualized rate of around 100%, and during the Coinbase days, sometimes even 1,000%. It was really hard to outperform Bitcoin.

Now, if you know what you’re doing, it’s still very high risk because a lot of these companies go belly up. But I think it’s a relatively safe bet that, if you pick a winner, these companies can return significantly more than 2 to 3 times. And if you pick a loser, well – that’s just a good experiment to show that something doesn’t work. You need a lot of failures to get to your successes.”

The analyst says that he looks for innovative companies that he believes blur the lines between traditional finance (TradFi) and blockchain ecosystems.

“As for the kinds of businesses I’m looking at, it’s mostly things where I can apply my existing knowledge – understanding markets, how hedge funds work, and the crossover between banking and traditional finance. For example, I invested in Debifi. They provide a platform where you can lock your Bitcoin with a private key into escrow and borrow USD or fiat against it. I’m likely going to help provide some TradFi liquidity into that space as well. That’s a perfect fit for me: I can bring lenders to the platform through my TradFi connections, enabling Bitcoiners to borrow while keeping control of their private keys.

What I like most about it is that it’s a profitable business model that also incentivizes self-custody. The more people holding their own Bitcoin, the more I can lend to them. That’s the appeal for me.”

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