Savvy, early cryptocurrency investors were investing in ICOs and making ROIs as high as 50,000%. Stop and think about that for a moment. That means for a $100 investment in early 2017 you could have netted $50,000. Not too shabby for a year of trading.
Are such returns possible in the future?
The simple answer is no.
I’m a big believer in the future of digital currencies , but the times of 1000x returns are likely over.
In order for a cryptocurrency to experience 1000x growth it will need to start off at a low valuation and then ascend to become one of the dominant cryptocurrencies. None of the current cheap coins (under $1) has the potential to become a mass-adopted cryptocurrency, and new ICOs are priced at absurd valuations.
Take EOS for example. It does not yet have a working product and is currently valued at about $2.4 billion dollars. Even if it achieves mass adoption, it’s so richly valued at its ICO that it will have trouble giving investors 1000x returns.
There is still tremendous upside if you invest in the right cryptocurrencies, but you’ll need to temper your expectations of 1,000–100,000x returns going forward.
How do you make gains in future?
Learn risk management: little pig eats a lot, big pig gets eaten. This statement tells the story of the market profits from our perspective. To be a profitable trader, you never look for the peak of the movement. You look for the small profits that will accumulate into a big one. So, no 1000x gain but a lot of small 2-3x gains that accumulate with time.
Manage risk wisely across your portfolio.
As long as there is profit – you are ok. Go on to your next trade and don’t find yourself losing it.