Turning $20K of Bitcoin & Ethereum into $1M using Grid-Bots — 75% after 75 days
Abstract
After starting a first grid bot on Bitcoin on February 14, 2024 with an initial capital of $3,143. Then I added an additional $3,363 onto an Ethereum grid bot for a total initial capital invested of $6,506. Although the ROI in the last few weeks has been negative, I now have a total capital of $11,417 in USDT with 0.362 BTC (market price of $62,312) and 7 ETH (market price of $3,171).
Once the market recovers upward, I will have accumulated significantly more USDT overall even though it seems like I have lost money but in reality I have accumulated more BTC and more ETH.
Since my last update on March 21, BTC went down 7.5%, meanwhile since February 14, 2024 when I started this strategy, Bitcoin has been up 26%. If I had bought $3,171 of BTC at first without a grid bot, I would have 0.0639 BTC which is a lot lower than 0.362 that I have now. Clearly, measuring things in USD is not always representative of the reality of our capital appreciation.
I just added a stop loss to both bots in the event of the market collapse. Which I will address in this blog, as well as the strategy I will adopt if it collapses versus if it doesn’t.
As well, I will readjust my strategy along the way to adapt to market conditions and I will describe such time-sensitive changes on x.com/Crypto_Rookies.This progress update will discuss the returns achieved after the first month.
Introduction
Every four years, the crypto industry undergoes massive pump and dump cycles. I will be describing how I believe I can turn $20,000 onto more than $1M before mid-2025 using grid bots to reduce the risks of liquidation.
You may also refer to my other strategy that I implemented on January 1st, 2024 to also turn $25,000 into $1,000,000 with an aggressive diversified crypto-portfolio which is less likely to be liquidated.
In the last month, the market has seen billions in liquidations, which is a testament that even though my strategy has also suffered, I suffered less than most other traders. I am far from the liquidation price demonstrating the lower risk level compared to conventional leverage trading practices. Yet, I admit, it is still a lot of risk.
Strategy
Please refer to my earlier post for an explanation of the strategy. Overall, I’m relatively pleased with the results, however I believe there are a few adjustments required. We currently stand on an economic downturn for risky assets because of the economies in Japan, the US, the war, etc. It is not entirely impossible that Bitcoin could go down to the $52,000 region in the next few weeks, likely it would range between $59,000 and $74,000 but I have to plan accordingly for both scenarios. If the market ranges then I have nothing to change yet, but I adjusted my stop loss to $58,826 for Bitcoin, and $2,699 for Ethereum. If the market goes below, I will move my capital out of ByBit onto Binance because on Binance I can use a grid bot on what they call COIN-M, which are essentially trading an asset on itself instead of paired with USD. The reason why I want to do this is that if the price goes significantly lower than it is now, I don’t want to resell BTC at a low price by converting it to USDT, I want to accumulate as much BTC as possible while the price is low. In which case the profits wouldn’t be on USDT, they would be in BTC.
The bull cycle is far from over, but previous cycles have seen Bitcoin dip up to 40% pre-halving. Although we are post-halving now, every cycle, things are slightly different, so it’s not impossible that the macro-economic situation could push the price down significantly, or go sideways for as long as September… In which case I may terminate the bots early and re-initiate them with a tighter range as I believe $90K is a bit more unlikely in the short term. As well for as long as we are in a bull market, the COIN-M mechanism is interesting.
Grid Profits Are Constantly Being Generated
If you look at the figures above, you can see that in both cases, there are accumulated grid profits of $2,138 and $3,171 for BTC and ETH respectively. These types of profits are realized profits, while the overall ROI is composed of both realized and unrealized profits/losses. Since we are still in a bull market, I am only concerned about the realized profits, I don’t sweat the unrealized losses since I know the price of both assets are very likely to grow significantly over the next year, meanwhile the bots are accumulating yield.
Is the strategy on track to generate $1M before mid-2025?
The power of compounding is important to understand; let’s make a hypothetical scenario based on the current results of 75% ROI in 75 days. It would make me miss my target of reaching $1M by mid-2025, however I have a feeling things may grow faster than expected later in the cycle. However, since I had made the claim it was on a $20K investment and I only invested $6506 so far, then I’m not too broken up about it even if I’m a little short.
COIN-M Grid Bot on Binance
Turns out the market was shaky enough that I terminated my Bitcoin and Ethereum bot on ByBit, and moved the capital to Binance to use the grid bot with COIN-M so that the profit remains in native tokens such as Bitcoin. I allocated 0.1601 BTC in total to just a BTC bot with a range between $48,000 and $74,000 and 120 grid with a 5X leverage. My liquidation price on this bot is at $33,000, so now I feel safer that I can monetize the sideway movements for the next 2 to 5 months as the market gets ready for the next massive leg up. In any case, with the COIN-M I will not be exiting out of BTC at a low price.
The market went down further since I activated this bot, however I have accumulated 0.0003 BTC on a 0.1601 investment, which is a return of 0.187% in 12 hours which is a very healthy return. In this case I don’t really care about measuring my ROI on a USD basis, I’m calculating it on a BTC basis.
Summary
Once a month, I will publish an updated blog post on the results and discuss if I am on track to achieve my goals. Meanwhile, do not forget to follow me on Twitter (x.com/Crypto_Rookies) to get more time-sensitive changes to my trades for any of my investment strategies. While such returns seem out of reach, I have achieved much higher returns in the last crypto bull market, however I had not learned to take enough profits before the market crash even if I knew it was starting to overheat. I strongly advise anyone who follows me to not make this mistake, and make sure to understand that everyone is a genius in a bull market, but taking profits along the way can feel bad until there is a significant collapse at which point you’ll very much appreciate the sacrifice.
About
Crypto Rookies is a crypto investor, serial entrepreneur in Artificial Intelligence and Web3/crypto with expertise in tokenomics and market making. Currently CEO of Smooth, which focuses on solving the problem of 95% of crypto-currencies failing in their first 2 years.
Smooth prevent such failure by:
1) Community building with AI (don’t waste money on marketing & influencers)
2) SEC-compliant Tokenomics
3) Market Making (hybrid between stablecoins & altcoins)
4) Treasury management (10%-100% APY depending on risk)
This blog channel generates 10,000+ views per month on the topic of tokenomics and crypto investments, so if you are interested in becoming a sponsor, please reach out to Crypto Rookies.
Meanwhile, please feel free to join the various communities I am involved in and do not hesitate to reach out.
- YouTube: Mikhail Yergen
- Cyrator (a transparent and reliable token review/ranking community where anyone can join, contribute and earn)
Also check out some of the early stage crypto assets that I’m actively using:
- DeBridge, a bridge technology that relies on market makers instead of actually bridging assets.
- GRVT, it’s a Decentralized zk-powered crypto exchange.
- MarginFi, it’s a peer-to-peer lending protocol on Solana.
- Drift, it’s a Decentralized crypto exchange on Solana.
- Swell, it’s a liquid staking protocol to use in conjunction with EigenLayer.
- Linea, a layer 2 protocol of Ethereum using ZK technology.
- GetGrass, a DePIN project for shared internet bandwidth with an upcoming data labeling system
Use my referral code below for various crypto tools used for trading:
Centralised Crypto Exchanges to trade with Leverage and Grid Bots:
