Crypto Trading Trek -2
I thought I had a winner . . .
On Oct. 15, 2023 I became the proud owner of XRP, a cryptocurrency.
As explained previously, I wanted to experience 21st Century markets by trading crypto currency. To do that I opened an account via the internet at Coinbase, a U.S.-based cryptocurrency exchange. Because they had my bank account info, I didn’t need to worry about posting margin. They charged what I thought were nominal fees and there was no minimum trade volume. It was an ideal setup for a novice.
My risk could be controlled, provided I didn’t become a crypto trading addict. Through the Coinbase portal, I bought 406.7 XRP in two lots at $100 each. That translates to about 49 cents per XRP. I was playing in the same pond as the big fish.
I was definitely a minnow compared to my friend, Sam Cappetta, who turned me on to crypto. Starting in late 2018, he started buying XRP, spending a couple hundred dollars here and a couple hundred there. His biggest purchase was 1,000 XRP at 30 cents. Over time, he amassed holdings of 13,005 XRP.
“On a personal level I’m a gambler, but a measured gambler. I have two rules: 1. Don’t chase money and 2. Don’t walk around the casino with chips in your pocket. When you walk away from the table, cash out,” he said.
Sam, who was well-researched on XRP, was not randomly rolling the dice. His long-term strategy? “Like the XRP army, I’m a holder."
The “XRP Army” is the collection of devotees of this flavor of crypto. In 21st century trading there are online fans and detractors of various commodities, including cryptocurrencies. These traders have favored chat threads and others reserved for bashing other cryptocurrencies and their followers.
I chose to ignore the online blather. While not day trading XRP, I didn’t expect to hold a position for more than a few months.
My daily routine consisted of checking the price, news and Coinbase balance. Originally I planned to save the XRP on my nano. That never happened because I failed to set it up in time. I also trusted Coinbase. I hoped that if they catastrophe befell them, there’d be some semblance of legal recourse. Also, if I wanted to quickly dump my position, it seemed easiest to keep the crypto on their books.
By mid-December, XRP’s price had risen to 60 cents. My $200 investment was now worth $244. While a $44 gain may not seem like much, that’s a 22 percent profit. Almost any trader will admit that’s a good return. Yippee!!!
It seemed like a reasonable time to cash out, which happened on Dec. 20, 2023. I was, on paper, a cryptocurrency winner. Before heading off into the sunset to bask in the satisfaction of this victory, a final tally was required. I got around to that in February.
Even though I had closed out the trade two months earlier, Coinbase continued charging $25 per month in account management fees. Crap!!
I immediately withdrew my cash and closed the account. By then, the $44 in winnings was gone in Coinbase’s pocket along with $6 from the original $200. Add to that the $80 spent on the unused nano. The ledger showed I was $130 in the red. That winning feeling turned into indigestion.
To complete the experiment I had to ask all the questions easy and hard: Was the experience worth $130? It’s hard to say “yes” and smile. I know how to set up an account and some of the history of the markets. The trading experience was disappointing. Lacking a physical commodity or market to see or even imagine, I felt detached from the transaction. The electronic dealings were non-emotional entries on a ledger sheet. Altogether, I paid a small price for some valuable experience points. Let’s call the whole thing character building. Maybe if I was writing $130 in the black I’d have a different feeling. Perhaps not.
And so for my lament: I miss the trading floor. There were faces to the trades. There were guffaws and groans. There was excitement, sweat, spittle and exhaustion at the end of the day. It was a physical, shared experience. All of that was missing in the electronic market.
Postscript: Sam is still holding 13,005 XRP on his safely stashed nano. Most of that was purchased when XRP was trading at 30 cents or lower. Cryptocurrency friendly Donald Trump was elected president in November 2024 and the markets have rallied. He’s due to be inaugurated on Jan. 20, 2025. As of Thursday, Jan. 2, 2025, XRP was trading at $2.41. Sam’s XRP holdings are now worth $31,342.05.
The outlook for XRP remains bullish. Some analysts are calling for it to rally to $20 or more this year. Maybe I’ll take another run at it.
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This blog is about more than my experiences. It is intended to be a collective experience of working on the commodity markets physical trading floor. If you or someone you know has a story please let me know I’d like to include it in this ongoing chronicle. I can be reached at linton122(at)gmail.com
© Clifton Linton 2025