Updated: Feb 15
About my life crisis
In July 2017, I was sued by my former employer, even though I had only worked for a short probationary period, simply for moving to another company in the same industry. The CEO sent a complaint email to my current company's headquarters in Singapore and even sent letters to my family. Unfortunately, this legal battle came at a difficult time in my life. That same month, I also went through a difficult break-up, and I lost $50,000 in the S&P 500 and Forex markets due to a series of unexpected Black Swan events. The lawsuit lasted for 2 years.
At the time, I believed I could easily find another job and use a few months' salary to cover my losses, but life had other plans. Despite my skills and experience, my high salary made it difficult for me to find a job that matched my qualifications. Meanwhile, I had ongoing financial obligations, such as monthly house loan payments and a loan I had given to a friend who hadn't paid me back in six months. I struggled to manage my cash flow and avoid damaging my reputation, leading me to borrow money from one person to pay another and take out loans from banks.
About my life change
Over the course of six months, I accumulated around $100,000 more in debt, while my income from my affiliate business, which I had stopped promoting years ago, was only $1,000 a month. However, things began to turn around for me in early 2018. I found a new job as a Marketing Director for an immigration company, which came with a commission on top of my salary. I also started offering marketing services to other companies, including those in the cosmetics, supplements, and real estate industries, some of which paid me a commission. Furthermore, I began selling digital products like marketing courses and e-books, which added to my income. Within a year, I had paid off all of my debts.
Now, in 2021, I look back on this time as a turning point in my life. While it was a difficult period, it taught me valuable lessons in cash flow management and risk management. As I've previously mentioned, my approach to investing is somewhat unique, and I typically shift my investments from one coin to another coin with similar characteristics and prices. Or between coins or tokens which I decided to hodl for long term no matter what.
After monitoring their long-term and short-term charts, I determine which coins or tokens are most promising and trade among them. In previous articles, I discussed the XRP and ADA pair, actually I have different pairs, including ADA and XRP, TRX and VET, LINK and VET (because of the same category), MATIC and DOT (because of the same category). In this article, I will focus on the VET (VeChain Token). After investing in both and studying them further, I have decided to invest long-term in VET for a number of reasons.
My investment and trading approach involves initially analyzing the charts and considering the capital and trading volume of specific coins. Once I have made a decision to invest or trade, I start with a small pilot amount of $100 to $500 for 2 to 3 months. This capital usually comes from profits from other coins or tokens. Following the pilot period, I then further research the project and the company behind it.
First step, try trading as a pilot.
The basis of my trading strategy in this period involves analyzing the cashflow and trading volume of similar coins on a daily, weekly, and monthly basis. When there is an inflow of funds into a specific coin, the price of that coin will typically increase. Traders will then take profits and move their investments to other coins. The allocation of investments among different coins can vary, with some coins decreasing in value while others increase. For example, if coin A increases by 5% and coin B increases by 10%, shifting 1000 coins from B to A will result in an additional 50 coins, resulting in a total of 1050 coin A. However, when coin B reaches a specific price level and begins to decrease, coin A may begin to increase rapidly, say by 15%, while coin B drops to a 5% increase. In this scenario, shifting from coin A to B would result in a profit of the 10% difference, with a total of 1155 coin B. By constantly monitoring cashflow and trading volume and strategically shifting investments, it is possible to maximize profits in a volatile market.
Second step, learn more to hodl in long term, or hodl with specific percentage of those assets.
When it comes to value investment, understanding the leadership and the team behind a project is crucial. The competence and experience of the leadership team can have a significant impact on the success and longevity of the project. As such, it's important to research and learn about the background and track record of the top leaders of the project, as well as the team members working on it. By doing so, investors can gain insights into the team's vision, mission, and objectives, which can help them make informed decisions about whether to invest in the project or not.
About VET (Verchain)
VeChain, a blockchain-based solution founded by Sunny Lu in 2015, has revolutionized supply chain and product management by providing an efficient system to manage and verify information. VeChain's primary goal was to address the problems faced by the logistics sector, such as scattered and lopsided data, which resulted in less authentic and hazier data transmission. VeChain addresses these issues by enabling NFC and RFID-driven surveillance and allowing the use of QR codes in supply management. VeChain facilitates rapid and flawless data management based on an authentic verification system, making it an ideal solution for large and complex supply chains.
About the project leader
Sunny Lu, the founder of VeChain, has a strong background in the supply chain and product management industry. He previously worked at Louis Vuitton China, which gave him valuable experience and insights into the industry. Since founding VeChain in 2015, Sunny Lu has been dedicated to creating a comprehensive solution for supply chain management that leverages blockchain technology.
About Verchain's valueS
VeChain has been successful in bringing significant improvements to the product lifecycle through its efficient management system. Its blockchain-based solution has enabled businesses to track their products from production to delivery, providing greater transparency and security in the supply chain. With Sunny Lu's experience and dedication to innovation, VeChain is poised to continue making a significant impact in the supply chain industry.
VeChain's VET token and VeChain Thor token have created a digital wave in the cryptocurrency market. VET coin is the primary currency medium that has found its implementation in payments and voting, while VeThor Tokens (VTHO) is a token provided to VET coin owners to run smart contracts on the VeChain Thor blockchain. The integration of Decentralized Finance (DeFi) and Centralized Finance (CeFi) has provided unique and eclectic solutions, making it an ideal platform for transparent and authentic exchange of information, effective collaboration, and high-speed value transfers.
VeChain has a potential future ahead, primarily because of its renowned strategic partnerships and the strong foundation it provides for stability and growth. VeChain's ability to identify the ownership of assets since their inception has substantially reduced the occurrence of misselling of high-value intellectual and investment properties, fraud, theft, and more.
MY RESULT AFTER 5-MONTH TRADING BETWEEN vet AND trx (AND SOMETIMES BETWEEN VET VS OTHER TOKENS)
I invested 500$ on VET at 0.001441$ on 7th Jul 2020, total hodl: 346,981 tokens. Before that, I invested 500$ in TRX at 0.001551$ 28th Jun 2020, total hodl: 322,372 tokens (TRX has a longer history).
When the price of VET increases dramatically, I will transfer the amount of tokens from VET to TRX and vice versa when the price of TRX increases and VET decreases. Today, after 5 months of constant fluctuations, my VET quantity has increased by 1760% and TRX by 1320%.
Total Hodl of VET: 6,106,870 tokens. Now the price at 0.02$ (price has increased 129%)
Total Hodl of Token: 4,255,320 tokens. Now the the price at 0.02683$ (price has increased 163%)
Today marks the beginning of the year and my plan is to closely monitor the market and take profits when the price reaches the relevant point. I intend to take a 50% profit of VET and reallocate the funds to other coins to diversify my portfolio and manage risk. Even if the market drops, I have already recouped my initial investment from the profits earned. However, I am considering taking 100% profit of TRX soon because I don't trust its CEO so much.
In investing, there is no one strategy that is always effective across all market phases. Depending on where we are in the market cycle, we need to select the right strategy for that specific phase. The strategy of exchanging our holding coins is just one approach that can be considered during times of fluctuation. Again, it is not a financial advice. I only shared my points of view and save it as my investment and trading diary.
Cryptocurrency Investment Diary, 1st Jan 2021.