A trader who bought Ethereum at $10 shares how he made massive returns using liquidity displacement: placing large buy orders into thin pools to force prices up. He argues long-term position trading over one to two years captures the highest multiples, though he admits the strategy isn't foolproof.
Chapters
I accumulated a lot of Ethereum at $10. I've gotten multiple hundred Xs. I believe that in crypto, the most lucrative strategy is position trading, which is about a 2-year hold, 1-year hold. But I do believe it gives you the highest multiples and makes you the most money. I specifically use something called liquidity displacement, which takes advantage of this new emerging asset class called crypto. There's this new innovation called automated market makers, and automated market makers are basically like a liquidity pool that never before existed in traditional finance. And because of this new innovation, it allows you to see these metrics that are actually the most important when it comes to price. I use the actual strategy of displacing lower liquidity pools. I buy into low liquidity pools, a big buy order comes in, it displaces the liquidity and shoots the price up of the coin, which is pretty much what I did with Ethereum early on. Ethereum gave me a lot of multiples, guys. It's not perfect, not everybody could do this, but it is real. I'm living proof of that.