Crypto assets trading can be very lucrative although very complex and risky. Trading in crypto assets, especially memecoins, requires a solid strategy due to the volatile nature of the assets.
An investor can do the right thing and still lose all their investments to double-digits price crashes which are really frequent in the crypto space.
On Monday, Etherscan data showed a trader who successfully turned an initial investment of $2,700 in Shiba Inu memecoin into $1.24 million, joining the class of millionaire crypto traders.
Before we get into how he did it, let us first look at what Shiba Inu is and how it was able to give such returns on investment.
What is Shiba Inu Coin?
Shiba Inu is an Ethereum-based Altcoin that is inspired by a Japanese breed of hunting dog called the Shiba Inu. Shiba Inu falls under the category of memecoins and is widely believed to be an alternative to Dogecoin, another successful memecoin project.
Shiba Inu was created in August 2020 by an anonymous individual or group called Ryoshi.
Its current price is $0.000025, which is equivalent to N0.037.
How the trader did it
- The savvy crypto trader who turned a $2,700 investment in Shiba Inu memecoin into $1.2 million pulled it off by investing in the Shiba Inu memecoin at the right time and holding the coins through a bear market.
- The trader invested in Shiba Inu three years ago, purchasing about 48 billion Shib Tokens in January 2021 for 2 Eth, an investment worth just $2700 at the time.
- The trader kept the investment untouched through the intense bear market of 2022–2023 and sold it yesterday for $1.24 million.
- The impressive profit was possible, thanks to Shiba Inu’s profitable run through the years. The memecoin nicknamed the Dogecoin killer is currently worth $0.000025 and was able to increase its value by erasing a couple of zeros since the trader invested in it back in 2021.
What could have gone wrong?
Despite the impressive return on investment, a lot could have gone wrong. Memecoins are notorious for being extremely volatile and could lose over 80% of their value in the twinkling of an eye.
Yesterday, Normie, a memecoin, launched on Base, suffered an exploit that took its market capitalization from almost $42 million to $1 million, leading to investors losing all their money.
Traders are obliged to do their research and invest in crypto projects at the right time.
A Fear of Missing Out (FOMO) period is ideal for a potential investment in an asset. The period is associated with rallying prices, increased interest, and endorsements on social media platforms like X.
Takeaway
In order to replicate the success of the trader, one only needs an early investment at the right time, a great deal of patience, and holding the assets through a bear market.
- The above three could bring any investor astronomical profits in the long run.
- Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a trading account or buying and selling the underlying coins via an exchange.
- Cryptocurrency trading has the potential to earn traders a massive return on investment and can be a highly risky venture due to the volatile nature of the crypto assets.
- One Shiba Inu coin is currently worth 0.037 naira.
