INTERVIEW WITH: SATOSHI FLIPPER
By Mounia Rabhi
From flipping homes to flipping altcoins: Satoshi Flipper does it all. As a passionate real estate developer who experienced multiple cycles in his career, he will tell you all about the importance of Risk Management and Market Cycles. The master of Flipping will take you on an interesting journey that will inspire you to work even harder to achieve your goals. Enjoy!
Tell us more about you, who is the real person behind Satoshi Flipper?
I’m a real estate developer by day, alt coin flipper by night. I grew up in Chicago after my family moved there when I was 3 yrs old. At an early age I had a passion for entrepreneurship and went to Northwestern University to pursue an economics degree. After a few years working in management consulting, I decided to further my studies and attended the Kellogg School of Management for my MBA in Finance. Upon graduating, I realized that real estate was my real passion and started investing in properties and projects around the country. For fun, I love to travel, work out, watch movies and experience new adventures. And while my current journey in real estate and crypto is extremely rewarding…family, friends and health will always be my priority.
We have been told that you bought your first BTC and altcoins in 2017, can you walk us through to that moment?
I’ve been aware of cryptocurrencies and bitcoin for years but had never given them much attention until the summer of 2017 when my interest in bitcoin & blockchain took hold. I started doing research on my own for 2 months or so before diving right in and falling in love with the crypto trading life fairly quickly. I started with an initial $40k investment in September ’17 and turned it into $300k during the bull run. Giving some of the gains back, I cashed out $250k in February ’18 and didn’t do much trading for 6 months until July ’18 when I got back into the market, reinvesting back in btc and alts.
What else do you do for a living besides trading Cryptocurrencies?
Since 2001, I’m been a full time real estate developer. As both owner & developer, I’ve been involved in a myriad of real estate projects including, but not limited to new construction, condo conversions, multi-family, land development, commercial & office properties and most recently single family home flipping. At the peak of the market in 2007, my company was actively involved in projects spanning 6 states with 60 employees. I started my real estate career with $500k of initial capital back in 2001 and grew that investment to $75 million in assets over a 6 year period. The crash of 2008 came quickly and over a 6 month period, our balance sheet went from $30 million in equity to $9 million in debt. Needless to say we lost everything. A few years later, the market started to rebound and I began buying & flipping foreclosed single family homes at Judicial auctions. Starting over again with 1 house in 2012, our operation has flourished over the years and in 2018 we successfully flipped 29 homes.
Your financial success started in Real Estate. What was your reason to diversify into Cryptocurrency? And how to do you further spread out your investments?
I’m a very risk tolerant investor and saw an opportunity to diversify some of my investment portfolio into cryptocurrency. I currently manage roughly $5 million in capital, almost all of it is in real estate. But I didn’t want to have all my eggs in one basket and cryptocurrency trading seemed like a great fit for diversifying the portfolio, given my skills and experience.
Coming from a relative ‘safe’ market like Real Estate to a speculative market like Cryptocurrency. How do you manage your risk to maximize your profits?
Only a very small % of my total portfolio is in bitcoin and crypto. You should only invest what you are willing to lose. I’ve been slowly accumulating more and more bitcoin in this bear market and plan to capitalize on it when the next bull market arrives. Hoping to turn a few hundred grand into a few million.
Given your year long experience in Real Estate you probably experienced the 2008 US Housing Bubble Burst. Do you see any resemblances with the 2018 Bitcoin Crash?
All markets, real estate, stocks, commodities, crypto, etc – they all follow the same cycle of euphoria and depression, just over different periods of time. But the pattern is always the same. The 2018 bitcoin crash is no different from the 2008 real estate crash in terms of the bear & bull market cycle structure that both industries follow. After each crash, a multi year bear market always follows. When the bear market ends, the bull market begins and the cycle repeats itself.
Can you share your favourite method of trading and what are the pros and cons of this method that you use?
By far my favorite method is flipping alt coins on Binance. I look for coins going through a volatile cycle and buy when they bounce off support and sell when they get rejected at resistance. I have a simple approach just using volume & the MACD indicator to guide my entries & exists. There is a drawback to this method. You must be very careful with timing and have a keen instinct for any changes in the trend. Trend changes come suddenly and quickly. While a high strike rate is great, in order to be successful, you have to cut your losses early on your losers. Risk management is everything.
Do you also have particular Cryptocurency holdings that you see as a long term investment?
Just bitcoin and my approach to long term investing is simple. I flip alt coins to accumulate more bitcoins. The goal is to make all your gains during the bull market and preserve all the gains during the bear market. I believe that we have just scratched the surface and the value of bitcoin will continue its parabolic run for years to come.
As we all experience it’s very difficult to combine Crypto with a daytime job. Does Crypto have a big impact on your day to day life?
Both my day job and crypto have a big impact. In fact, they take up my entire day & evening. The real estate flipping operation takes up the majority of the day. I’m always glued to my mobile cell phone so I can monitor trades at all times. It’s like having 2 full time jobs in one.
Like in every bear market the sentiment gets a beating, what makes it very difficult to calculate the direction we are going. What is your medium- and long term view on the current market?
I block out all the noise. I’m very familiar with market cycles and understand how they work. In the last 10 years, the bitcoin has experienced 6 or 7 bear markets and has always come out on top. I’m very bullish on bitcoin and crypto long term. In the meantime, we just have to complete the current cycle we’re in.
Crypto Twitter is a ‘go-to’ for many retail traders/ investors. What can we do as a community to keep ‘new retail’ safe from pump and dumps, scams, misleading information and frauds?
Everyone needs to take this issue very seriously. I’ve gotten some backlash in the past for calling out scammers, but i’m not on Twitter for likes & followers. I’m there to share my trading experience and have very little tolerance for scammers that invade our community. If I see someone engaging in fraudulent business practices, I will make my followers aware. The more established and legitimate accounts must also do their part and not support the kind of scamming and fraudulent behavior we have seen lately.
Would you like to share anything else with our readers before we end this interview?
I just hope that sharing my trading & business experiences helps others in their journey. If anyone has any questions, my DM’s are always open. I’ve helped many followers in the past and will continue doing so in the future. Nobody has to pay me for it and I seek nothing in return. Thanks a bunch for the interview and getting my story out there for others to read!
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