It was because of bitcoin that Daniel Duarte decided to act as a trader. After going through several companies and even a society in a nightclub, the São Paulo based in Porto Alegre saw cryptocurrency at the end of 2016 as an interesting investment and of which he became enthusiastic.
“Instead of taking 10 tequilas and a vodka combo, buy and forget. It is the best investment in the universe, ”he said in a conversation with Bitcoin Portal.
Between falls and profits over the last few years, he built a net worth that reached R $ 6 million at the end of 2019. In addition to being a trader, Duarte is currently a partner-investor at Nox Bitcoin brokerage.
The amount, even, appears in the income tax declaration for 2019, which was shown by himself during live last Sunday (15) on his YouTube channel.
Duarte decided to go live after the events of last Thursday (12), when the value of bitcoin dropped to 50% in a single day – a trend that was followed by other cryptocurrencies.
According to him, the idea was to help other investors to deal with situations of fluctuations in the market and to make better investments.
He himself lost the equivalent of 80 bitcoins, something like 10% of his assets, during the black swan. And he challenged other traders to show how they fared during the crisis – especially those who sell courses on the activity.
The “black swan” of the 12th
What happened in the last week is what can be called "black swan", jargon of the financial market to refer to a rare event, with a great impact and impossible to predict.
According to Duarte, the cryptocurrency market was in a “paradise” situation until that fateful gloomy Thursday for the entire market, with reflections also on bitcoin and other digital currencies.
“I had R $ 6 million (total equity) until the black swan (Black Swan)”, said Duarte. The losses reduced its shareholders' equity by 10%.
While some point to the coronavirus pandemic, Duarte sees another factor as causing the cryptocurrency to fall:
"The market was unaware of the virus, the drop was due to oil".
Despite the losses, Duarte still recommends bitcoin as an investment, especially in the “buy and hold” modality (when buying small amounts month by month, thinking about the long term).
For those who work across the counter, however, the situation is the opposite. “Now to be a trader (bitcoin) is the most difficult in the universe. It has both ends and they are very extreme ”, he explains.
Confessions of a beginner trader
The bumps of the last 12 days, however, were not the worst moments that the trader faced with bitcoin. He reports that in 2017, when he was still a beginner, he made mistakes that jeopardized both his heritage and that of close friends.
That group, including Duarte, decided to create a bitcoin fund, out of each other's reserves. With bitcoin quoted at the time around $ 1,000, he made long-term bets at $ 1,700. However, a wrong strategy in the market has put everything to lose.
“And then, inexperienced, I started to 'shorten' (bet against the trend). Then the business started to climb straight up to $ 3,000. When it went up to $ 3,000 I had not been liquidated, but I panicked because it was a lot of money from me, but also from my best friends ”.
Amid the turmoil, the trader also forgot to give orders to reset the position. As a result, it remained vulnerable to new market fluctuations.
The losses were compensated months later, based on a strategy created by a friend of Duarte who also invested with him. With what was left of bitcoins, it adopted an investment strategy aimed at the long term, which allowed an increase of 30% on losses.
“Everyone got along thanks to my best friend and it made me learn a lot. Because it is only a real trader who takes a kick in the nose and falls, gets up and starts again ”, reflected Duarte.
Plans for policy
One field that Duarte wants to venture into soon is in politics. Affiliated with the New Party, he will give financial support in this year's election and plans to run for Congressman by the caption in 2022.
“New Party is the only party in fact. The rest is all criminal organization, ”he says.
During the live of the last day 15, Duarte gave a clue of what he intends to do, if elected to one of the seats in the National Congress. He proposes that public servants with important functions, such as judges, prosecutors and parliamentarians, have their assets exposed.
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