From $1K to $10K: My Adventures in A Zero-Sum Game
Journal #1: Why I Started and Differences between Crypto and Stock Trading
Dear reader,
I’m dipping my toes into this whimsical zero-sum game.
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Crypto Trading. This is probably the last thing you would expect me to do. But we are going to have an open mind in 2025 to explore new options :) I don’t think you need to be a genius to make money trading (based on some folks I knew). Let us embark on a journey of turning $1000 into $10,000 trading cryptocurrency, specifically futures trading. I am currently at $2300, which I credit to my beginner’s luck.
*Don’t worry, if you subscribed to read about my life lessons, I will continue to post about my learnings from school, work, and random shenanigans.*
Look, I know there’s a bad rep for crypto in general. So why am I doing this? I think this presidency will be especially friendly for cryptocurrency, and I wanted to try something new to see if I am good at this. Also, to stay relevant since many friends are interested in pursuing quant after graduation, and I can test different strategies fast due to crypto’s volatile nature.
Most people are too scared because they “haven’t learned enough technicals” or not doing crypto because they “are not familiar.” I think the best way to learn is to do it so I started.
There is no doubt that top quant firms hold a significant advantage over individual traders, primarily due to their access to deep liquidity, rapid market data feeds, and the ability to engage in latency arbitrage through high-frequency trading. So it’s usually safer for us consumers to buy ETFs. However, I believe quant firms’ edge is much more pronounced in traditional securities. In contrast, the cryptocurrency market offers benefits such as decentralization, a wide array of coin options, and in many cases, lower liquidity —which can limit the scalability of some high-frequency or large-scale strategies. This environment could help level the playing field for individual traders.
In this journal series of my trading journey, I will talk about my emotions and technical strategies I’ve tinkered with since I started. I know many traders saying all these fancy terms, which made discussions overly technical and unfriendly for beginners. But in general, I was just basing my decisions on vibes/intuition and made an educated guess, which surprisingly aligned with some strategies with technical terms. I hope to articulate these vibes using technical language in the most digestible, accessible manner possible.
Caveat: I am far, far, far from being an expert. This is just my two cents and my initial thoughts after making small trades in the past three weeks.
Since I have now touched both stocks and crypto, here are the differences I’ve experienced myself between crypto trading and stock trading:
Differences between crypto and stock trading
24/7 Market Access:
Have you ever tried to make a trade over the weekend when the market is usually down, only to realize that you are not able to make a trade? Or if you live in California, you realized you can only trade before 1:00 PM PST due to the time zone difference.
Crypto markets are open 24/7, and this continuous availability allows anyone with internet access to trade at any time, regardless of time zone.
Global Accessibility:
Crypto markets are accessible to anyone around the world. Unlike traditional stock markets that may require navigating local banking systems or brokerage accounts, crypto trading platforms are available globally, often with fewer barriers to entry.
For example, for a person in Hong Kong to buy stocks listed on the NYSE, they often need to use an international broker, incur currency conversion fees and higher commission fees, and the US may withhold a percentage of the dividends for tax purposes.
None of these will happen in crypto.
Easier Fund Accessibility:
With crypto trading, funds are more readily accessible. You don’t have to deal with the delays of transferring money via ACH or wire transfers, which can be a hassle. Also, transferring large sums to a brokerage account may be subject to daily limits and holding periods—sometimes up to 10 days. This can prevent you from quickly taking advantage of breaking news or market opportunities.
Market Drivers and News Impact:
Crypto trading tends to be less directly influenced by political events compared to stocks. Instead, it is more driven by market trends and sentiment. However, global news, especially the US news, still plays a role in mainstream coins like Bitcoin or Ethereum. For instance, Bitcoin experienced a surge during Trump’s election and later dipped following his tariff policy announcement.
High Volatility:
The crypto market is known for its high volatility, meaning the potential for both rapid gains and steep losses is greater. It’s possible to achieve 10x returns in a short period, but there’s an equally high risk of significant losses. This volatility underlines the importance of trading only with disposable income—money you can afford to lose.
Exchange Types:
In the crypto world, you have the option of trading on centralized ones where a company facilitates the trades and ensures its security (Binance, Coinbase, etc) or decentralized exchanges where users trade directly with other users (DEXs like Hyperliquid, dYdX, etc). This contrasts with the more traditional structure of stock markets, which typically operate through brokerages, or centralized exchanges in crypto terms (Fidelity, Schwab, etc).
Income and Rewards:
Unlike stocks, where you might receive dividends as a shareholder in a profitable, tangible company, crypto trading does not offer dividends because you aren’t owning a part of a company. That said, some newer crypto protocols may offer rewards or promotional incentives that can serve a similar function.
Emotional Strategies
I often catch myself thinking, "I should have done that," or "I should have committed more to that position to secure a higher return.” Having this mindset will create more of an emotional toll. There's always the possibility that the outcome would have turned out the exact opposite way, leaving you in an even worse position. I’ve realized since crypto is super volatile, there’s always another opportunity in the next couple of hours or days. With that in mind, I learned to calm myself and avoid greed – every time I took profit, no matter how small, is great!
From my experience in poker, where managing emotional turbulence is key, I've adopted a similar approach in trading: I assume the money I buy in with is already gone. Also, like in poker, you should always aim to make decisions with the highest calculated probability of success. This approach will help you achieve long-term gains, and even if you experience a significant loss, you can take comfort in knowing that you made the most informed choice possible.
Before entering a trade, I calculate the liquidation price and set a stop-loss order (to buy/sell at a predetermined price) that represents the maximum loss I’m willing to tolerate if my prediction proves incorrect. By mentally accepting that I’ve already lost the money, I prevent fear from taking over. That said, I have found that in a volatile market, a stop-loss can often get triggered prematurely—only for the market to bounce back in the opposite direction, which is far from ideal. So sometimes, instead of setting a stop-loss, I make sure the liquidation price is set well outside the range of previous candlestick open and close prices, giving the market flexibility to go up and down (this only works in some cases ahah).
I also recall the excitement of my first deep dive into chart analysis—spending three straight hours just watching the movements. It was incredibly addictive. That initial experience was rewarding; I even made $800 scalping (buy/sell quickly at small intervals) during that time. Now, I’m ready to take the next step by exploring more technical strategies and automated trading to make money in the long run.
I will articulate my thoughts on the “vibes” and strategies I’m using in the next blog, so stay tuned.