Note: This blog is written by an external blogger. The views and opinions expressed within this post belong solely to the author.
We all have that one friend who’s really a maestro when it comes to Cryptocurrency trading, but that friend is probably not as good as Mr Goxx. You might be wondering who’s this guy and what’s the big deal. Well, the big deal here is that Mr Goxx is not a human.
Yes, you heard it absolutely right! Mr Goxx is neither a human nor a highly intelligent A.I., which many of you must be thinking right now. Well, as the title blatantly suggests, and trust me, this is no joke, Mr Goxx is a Hamster!
Yes! One cute rodent in Germany is outtrading some of the best in the cryptocurrency space, and it is highly likely that you might fall in this category. But how is this possible? Has this hamster developed a highly evolved brain? Well, not quite.
The Story so far
Two individuals in Germany (who have decided to remain nameless) devised the experiment to test if a hamster could outperform humans in terms of investment. They got to work on creating the tools that would allow a hamster to conduct cryptocurrency trades.
It all starts with a hamster wheel or an “intention wheel”, in this case. Mr Goxx’s owner created the “Goxx Box,” a crypto-rigged office linked to the hamster’s larger home that allows the hamster to do certain activities that subsequently execute particular cryptocurrency trades. The hamster is free to enter its office anytime it wants to trade.
The hamster’s home is entirely automated, utilizing a variety of technology such as software scripting, microcontrollers, single-board computers, computer-aided design, 3D printing, laser-cutting, and others.
To begin, Goxx uses the “intention wheel” to select one of about 30 cryptocurrencies to trade. After selecting a cryptocurrency, the hamster passes through one of two “decision tunnels” that initiate either a buy or sell trade of the selected cryptocurrency.
Mr Goxx has had his share of ups and downs. After a month, he had lost 7.3 per cent of his initial investment of 326 Euros. By the end of September, he had recovered to a total gain of 16%.
MrGoxx’s crypto portfolio includes a diverse spectrum of cryptocurrencies such as TRON, Ethereum, and Bitcoin. According to Protos, the hamster’s performance as of September 27 was up 19.41 % since it began trading in June, outperforming major stock markets such as the Dow Jones and American investment genius Warren Buffet’s business Berkshire Hathaway. It’s a remarkable achievement for anyone, but especially for a hamster.
As of October 6, Mr Goxx had made a profit of 73 euros. According to performance statistics gathered by Protos, its portfolio reached a high of over $580 in mid-September, when its performance had risen by nearly 50% over the past few months. However, the current crypto sell-off has diminished the hamster’s gains.
So what can we learn from this Crypto trading Hamster?
Maintain a consistent trading Strategy
When it comes to investing, and especially when it comes to crypto, you need a game plan. Without a solid strategy, you’re very likely to make emotional decisions, such as investing more money that you can’t afford to lose on an overhyped cryptocurrency or selling in panic following a price crash.
Our hamster Mr Goxx has been quite constant in his investments, regardless of market situations. At the start of his career, he consistently put 20 Euros in each cryptocurrency investment. He increased the buying price to 50 Euros after making some money on non-fungible token (NFT) sales.
Many new investors are solely concerned with which cryptocurrencies to acquire, but choosing how much and how frequently you will invest is crucial.
Create a diverse portfolio
This is a common suggestion when buying stocks, and it is also sensible while purchasing cryptocurrency. If you establish a broad portfolio of many types of cryptocurrencies, you will not be wiped out if one of them fails. And, because it’s difficult to predict which cryptocurrencies will be the most successful, buying a range of cryptocurrencies increases your chances of picking a winner.
Mr Goxx is a hamster who appreciates a well-balanced portfolio. He has invested in a wide range of cryptocurrencies, including:
- TRON (TRX)
- Polkadot (DOT)
- Cardano (ADA)
- Chiliz (CHZ)
- Uniswap (UNI)
- Bitcoin (BTC)
- Ethereum (ETH)
- Dogecoin (DOGE)
To name a few, Mr Goxx has diversified his portfolio by putting his money in the market leader Bitcoin, in a decentralized development platform with Ethereum, and a major decentralized exchange – Uniswap.
Don’t get discouraged by downtrends.
If you’re a crypto investor, you’ll face downturns; it’s simply a matter of when. And, given the volatility of cryptocurrency, it’s not uncommon for your portfolio to lose a significant portion of its value overnight.
You can’t allow these momentum fluctuations to influence you too much, no matter how difficult it is. To avoid becoming frustrated, only purchase a cryptocurrency if you believe in its long-term potential.
Mr Goxx, despite his current success, went through the same growing pains as any other crypto investor. After his first month, his portfolio had lost money. Whereas most would have given up, he persisted, made winning trades, and became widely famous.
There’s a lot to appreciate about Mr Goxx’s approach to cryptocurrency trading. He’s steady, he invests in a large number of currencies, and he appears to be impervious to pressure. These are qualities to emulate since they can help both hamster and human cryptocurrency investors.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.