While many traders use complex strategies to make money in the cryptocurrency market, a recent example shows that sometimes, a simple buy-and-hold approach can pay off just as well. One Ether Whale demonstrated the power of patience by holding on to their investment for over eight and half years, leading to significant returns.
Ether Whale Buys Ether at $5.23 per Token
EmberCN in X post dated Sept. 16 wrote that, in February 2016, Ether was trading at just around $5 per token. During this time, an investor purchased 16,636 ETH on the crypto exchange ShapeShift for $5.23 per token. The total cost of the purchase came to $87,006.
Remarkably, this investor held on to their ETH over eight years, not selling a single token, even as prices soared. Ultimately, an initial investment of $87,006 turned into $81,391,049.20 at the all-time high price.
Profitable Sale After Eight Years
On September 16, 2024, the long-term investor finally decided to sell some of their holdings. According to blockchain analytics, the Ether Whale sold 350 ETH at $2,340 per token, earning a total of $819,000 from that single sale. This sale alone resulted in a gain of almost 10 times more than the initial investment.
Despite selling a portion of their holdings, the investor still has over $38 million worth of Ether remaining at the same rate the Ether Whale sold 350 ETH. This shows how a simple buy-and-hold strategy, coupled with patience, can lead to incredible profits over time.
NFT Success With Minimal Investment
In another example of a savvy crypto trade, a different investor used a more complex strategy to purchase a valuable non-fungible token (NFT) with a relatively small amount of money.
The NFT in question is CryptoPunk #2386, a rare Ape-themed NFT with shades and a headband. In 2020, this NFT was split into 10,000 fractional shares, allowing multiple people to own a piece of it. The shares were traded on the platform Niftex, which is now no longer operational.
On August 28, 2024, a trader proposed a buyout bid of 10 ETH (approximately $23,000), just a fraction of its actual value, to purchase the NFT. According to the CryptoPunk site, the NFT had bids of 900ETH (about $2 million). Despite efforts to block the shotgun by pseudonymous NFT collector gmoneyNFT, the trader successfully acquired the NFT, which is now valued at $1.5 million.
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