In September of 2017, Bitcoin was trading around $3,500 a coin. I predicted that it would hit $10,000 a piece by the end of the year. I owned 0.75 of a coin.
Crypto was hot and I knew there was money to be made. I became overconfident. I started selling high and buying low. In about a month, I turned my 0.75 coins into 1.2 coins. In addition, the value of each coin was now around $5,000.
I had doubled my money.
I continued this pattern and Bitcoin continued to rise. By mid-November, I had 1.5 coins and Bitcoin was trading above $8,000. I was certain it would hit 10k by January. Absolutely certain.
When it hit $8,500 I sold with the intention of buying it back when it fell once again. It was very volatile and the patterns of rising and falling were roughly a variation of $1,000 a week. Little did I know, I was not going to be able to buy it back this time. While waiting for it to drop, I watched as Bitcoin climbed.
By the end of November, it broke $15,000. Man. What’s even worse, it continued to go up! $17k, $19k Why didn’t I simply hold? Because I got cocky. I knew it would break $10,000, yet I sold at $8,500 to try and buy more. I got greedy and wanted to add to my position to make even more money. Instead, I lost the potential to make $10,000. Bummer.
With Bitcoin over $19k in mid-December, I started trading Litecoin because it was the most volatile of the big three coins. Bitcoin, Ether, and Litecoin. I sold all my Ether and used that and the Bitcoin money to day trade Litecoin. The price fluctuated at a very rapid rate.
In the beginning of January, it was moving up or down $20 every hour with an average price of $370. I was buying and selling coins in blocks of ten. I’d buy and sell at variations of $5 or $10 increments. Sell at $380 buy them back at $375 or $370. $365 – $360, $380 – $375, et cetera.
For a week, I made about $500 a day. I was increasing my coins and the excitement of buying and selling has always been an enjoyment of mine. Then something happened.
I had 50 coins with an average purchase price of $360 a coin. Overnight, all crypto started falling. Bitcoin began tanking and the other coins followed. Just like that my profits were gone. I was stuck with a falling coin. I should have sold and held the cash.
As prices continued to fall I sold some Litecoin to buy penny crypto altcoins to try and make up some of the losses. Still, the big three kept falling. This time, instead of losing the potential to make $10,000 I actually lost $10,000.
Motivated to recover, I started buying and selling Bitcoin, which was now trading between $10,000 and $12,000. I also purchased some more altcoins. After a month I made a few thousand but I still felt downhearted. My altcoins were doing really well, however, since I had only put $100 in each of the 8 coins I bought, it wasn’t much of a gain. I was still in the hole.
I tried Litecoin again for a few days but the fluctuation was not near as much as before. It seemed I was off my game. I bought and sold and the opposite thing always seemed to happen. When I held coin the value fell and when I held cash the value rose. I couldn’t seem to get ahead!
Discouraged with crypto, I started working hard to succeed in another investment that I didn’t really understand. I joined Steemit at the end of September; however, it wasn’t until the beginning of December, that I really began focusing on it. I even invested $100 for 100 of their SBD coins.
Little did I know that those coins went up to $15 a piece. That meant I had turned $100 into $1500 in about a week’s time! Unfortunately, I spent it. I was using it to invest in my blog. I was sending SBD to heavy hitters to get them to vote on my posts. Foiled again.
This time, I really became motivated. Steemit was like nothing I had ever experienced. Three variations of crypto built into a platform that resembles a social media site where you can get paid for your work. I decided to really learn what Steemit was. $100 to $1500 in a week was insane.
What was even more insane was that the coins went up to $18 a piece and I had no idea! Chalk up another loss to missed opportunity. Then, when the big three fell, they fell. However, since I wasn’t holding any it didn’t really affect me. I simply knew that I wanted to learn more so I would be able to take advantage of the next price spike.
During the last few weeks in December, I made a couple of trades that increased my coin count. I also started learning all I could about Steemit and how it works. In January, I began selling off some of the Bitcoin and Litecoin that I had left and converting it to Steem and SBD. The value was down so it was a good time for me to buy in. I started paying attention to the rates and made sure I only purchased profitable upvotes. I also set a goal.
December was when I started to take Steemit seriously. I began commenting on posts and getting more involved in the community but it was sporadic. However, I gained roughly 100 followers from doing so. On January 1, I had 155 followers and my goal was to hit 260 by February 1.
I really got involved. I commented on 20 new posts each day and 10 posts from people that I followed. In addition, I replied to all of the comments and replies I received. I was also purchasing upvotes and getting involved in the Discord channels along with learning about services like @minnowbooster and @smartsteem. Not only that, but I was purchasing Steem and had invested $600.
On February 1, I missed my goal by a long shot. However, this time, I was very happy with the results. My goal was to add 100 followers to my account and bring the total to 260. However, instead of 260, I had 529 total followers! My hard work had paid off.
My account seemed to be growing pretty well and I was getting some good interaction on my posts. January was a good month overall. My stock portfolio was up 13% and my options trading value was up 32% although I was still down 50% in options overall. Then, something else happened.
During the last few days of January and the first week of February, my earnings began to disappear. My stocks lost 10% and my options were back down to a 75% loss of initial value. In addition, my crypto was still down about $5000. However, my Steemit account was still growing! My $700 initial investment was now over $2000. The question became; why was I losing in other crypto and options trading?
Creativity and Purpose.
Let me illustrate with an example.
In the book of Matthew, there is an amazing story called The Parable of the Talents. A master is going to go away for a while and gives his three servants some money each according to their ability. To the one he gives 5 talents, to another 2 talents, and to the third 1 talent.
The first servant puts the talents to use and doubles the money. The second servant also uses the talents wisely and doubles his money. The third servant, however, buried his talent in the ground for safekeeping.
When the master returned, he asked for a report. The first servant said, “Look, I invested the talents you entrusted to me and made 5 talents more.” The second servant said, “Look, I invested the talents you entrusted to me and made 2 talents more.” The master replied with joy saying “well done good and faithful servant enter into the joy of your master.”
The third servant said, “master, I know you to be a hard man reaping where you do not sow and gathering where you scattered no seed. I was afraid and hid your talent in the ground. Here, have what is yours.”
The master replied, “you wicked and lazy servant! If you knew this, why didn’t you at least put my money on deposit with the bank so I could have received the interest? Now, take the talent from him and give it to the one who has 10 talents. And throw that worthless servant outside into the darkness where there will be weeping and gnashing of teeth!”
What does all of this mean?
When I was investing in crypto and options trading I had only one purpose. That was to make money. That was it. I traded with the intention of making money. In reality, there really isn’t any other reason to trade. After all, you’re not going to trade with the intention of losing money. However, there is more to life than money.
You’ll notice that Jesus used the word “talents” when teaching the parable. He could have said money, but He said talents. Why? Because you are to use your talents and then you will make money. Using your talents means being creative and having a purpose.
This is why Steemit is so great and why I did so much better there in such a short amount of time. Within 2 months I had tripled my investment. Where else can you do that? The reason Steemit was paying off and my other investments weren’t, was due to creativity.
I was using my talents for a purpose other than serving myself. Yes, trading crypto was using my talent, however, I was the only one benefiting from that purpose. On Steemit, I am using my talents and others, who read my posts, may be able to benefit from them. Therefore, the purpose is much greater.
Options trading wasn’t working because it was lazy, like burying the talent in the ground. I traded the option to make a quick buck. Crypto trading wasn’t working because it was greedy. I traded for the purpose of making more money. Both of these would only ever benefit myself.
Stocks were good and remained stable because they were long-term. They required research. Since January 2017, when I started in the stock market, I’ve made 20% overall. That’s 20% in one year, due to lots of work, lots of trades, and lots of research.
On Steemit, I have made 300% in two months. This is because it is based on creativity, teaching, and helping others. It is not being done for the purpose of making money. Yes, I hope that I will be able to make enough money to earn a living on Steemit. However, I really hope that the content I post will continue to teach people things that they need to know.
For this reason, I am going to get even more involved in Steemit. I’m going to start going ALL IN. I’ll begin reducing my other crypto and my options and start converting everything to Steem. I also started a video series dedicated entirely to teaching people about Steemit. I’ll release one video every Monday on the Spencer Coffman YouTube Channel. I really hope you’ll tune in and subscribe. In addition, feel free to share the videos so others can learn how to be successful on Steemit as well.