Bitcoin veteran who made $10 billions profit shares his strategy

• Investor reveals strategy that gave him million-dollar profits in Bitcoin.
• Bitcoin price with support at $10,420 could go up to $11,000.

Legendary Bitcoin investor Chamath Palihapitiya has published the secret that allowed him to make a $10 billion profit in Bitcoin. The investor made a big bet in 2012 and 2013 to acquire more than 1 million BTCs at a price of $80 at the time. His strategy consists of distinguishing when an investment yields real profits and knowing how to manage risk, to illustrate this he made the following comparison:

Investing 101: Don’t confuse slugging percentage with batting average. The former is being the cool kid in high school – you’re a rare thing and everyone wants to know the secret. The latter is like going to the prom with your mom. Everyone talks about it, but not kindly.

Palihapitiya explained that an investment is about knowing the product you invest in, even if it is unknown. In that sense, he pointed out that the MOIC (Multiple of Invested Capital) indicator becomes an indispensable tool to know the total value of the investment or portfolio. Palihapitiya said that “great investors” focus on slugging percentage, that is, they know their investment and can add more money, capitalize or take risks and “ride the winners”. The investor concluded that “great investors” know that it is more important to have a good investment, a winner, than to have “many irrelevant pieces of many winners”. Palihapitiya added:

Take the time to understand what you own. So deeply that you could be “all in” if necessary. It should never come to pass but if you have this level of conviction, you will size and add appropriately and let your slugging percentage do all the talking.

Palihapitiya has worked for giants like AOL and was a senior executive for Facebook in its early stages. When the Bitcoin Whitepaper was published by Satoshi Nakamoto in 2009, Palihapitiya had an estimated wealth of $ 1 billion. Through his firm, Social Capital, he has invested in Digital Currency Group, a company that aims to “accelerate the development of a better financial system” by supporting Bitcoin and blockchain companies with access to capital.

Bitcoin price, return of the bulls?

In the crypto market, bullish sentiment seems to have returned with the recovery of Bitcoin’s price. At the time of publication, Bitcoin is trading at $10,713 with moderate gains of 0.89%. The weekly and monthly charts are still in the red with losses of 2.12% and 6.71% respectively. Market capitalization stands at $197,857,966,542.

According to the Whalemap monitor, Bitcoin whale activity indicates a strong support level at $10,407 and $10,570. As shown in the image below, this means that Bitcoin whales have accumulated a significant amount at that level, turning this level into support. Whalemap stated that the price must remain above it in order to bullish.

Source: https://twitter.com/whale_map/status/1309472800076304385/photo/1

Nick Cote is more cautious and points to a support level between $9,800 and $10,100. The trader indicates that Bitcoin’s price is at a throwback, but expects it to test daily resistance again at $11,200, if it manages to break above $10,800. The trader has stated that the correlation that exists between Bitcoin and the traditional market will eventually benefit Bitcoin:

Either Powell reverses the $USD this week, or this rally is just getting started. Deal with it.

Source: crypto-news-flash.com