He’s often looking for insane 100x to even 1,000x gains, and he’s willing to stomach the kind of volatility that could wipe out three-quarters of his portfolio’s value over a couple of weeks.
And while everyday investors might be bewildered by those concepts, it’s not too surprising for Woo, given his background.
While now best known for his innovative philosophies on cryptocurrency, Woo got his start in the trading world buying derivatives during the run-up to the 2008 financial crisis — he started shorting bank stocks right before the banks collapsed. And that experience gave Woo a pretty solid understanding of how to trade markets when they’re at their most volatile.
Plus, with a background coding as a teenager, it’s no wonder Woo was drawn to cryptocurrency.
It was right around the time bitcoin hit the $1 billion mark that Woo got interested in crypto, shortly after moving to Bali, where, as he describes it, he “went down the rabbit hole.”
While his first foray – much like other investors just getting in – was bitcoin, he’s since changed his tune, deciding the real action is in altcoins (alternative cryptocurrencies).
“My particular portfolio is very, very high gain, high risk. It’s highly volatile,” said Woo.
But, even still, he’s got a pile of data to back up those risks as the right decision.
“Under the data that I have is that most coins when they launch that are successful, they create a particular graph,” he said, pointing to the Falcon 9 rocket launches as a visual. “The photos show the rocket launching up with this steep trajectory and then it levels off and continues moving steadily up.”
Although, looking for those breakouts comes with some gnarly lows, too.
But to Woo, “We’re not trading here. We’re investing. We’re going to put it in a drawer like a venture capitalist does.”
For him, investing in cryptocurrency isn’t about short-term trading gains, but about longer-term investments. Because of this, Woo primarily focuses his attention on the “early launch” of cryptocurrencies, where the trajectories are steepest, hoping to get the 10x to 100x trajectory that some of the best coins have had during their initial run.
Woo believes that chasing those kinds of returns will be far more lucrative in the long run than the “boring” 300 percent to 400 percent annualized returns that bitcoin is now generating.
And then, once the coins mature – typically rising to the range of around half a billion dollars – that’s when he starts looking to exit.
But even without that investment thesis, Woo has data that shows considerable returns even if you’re just investing blindly in all altcoins.
Woo told CoinDesk: […]