Home Cryptocurrency Scott Melker on defying the odds with crypto trading – Cointelegraph Magazine

Scott Melker on defying the odds with crypto trading – Cointelegraph Magazine

by Gordon James

Scott Melker was one of the first traders to see Bitcoin’s potential, and he has been in the game ever since. He is now a crypto trader for his own company, which gives him access to top-tier trading technology from day 1.

Scott Melker is a professional trader who has defied the odds with his success in crypto trading. He has become a millionaire by trading cryptocurrencies and shares his wisdom on how to succeed as a trader.

Scott Melker, sometimes known as The Wolf of All Streets, is a cryptocurrency trader and advocate who is significantly more personable than his internet moniker suggests. Melker, a former DJ, runs a modest crypto advocacy empire that includes YouTube videos, podcasts, and a well-read newsletter.

Scott Melker is forthright about his motivations for entering the crypto sector. He became interested after hearing friends talk about the gold-paved alleys of the blockchain realm, where 100x weekly returns were normal. Melker was fortunate to study good trading before joining the unregulated crypto casino since he has been accustomed with the more cautious fluctuations of the stock markets since boyhood.

“Back then, XRP was like a cent or something,” he remembers. The DJ culture was also big on crypto, which Melker credits to the community’s risk-taking attitude. He credits his early 2016 success to good timing, as he quickly cashed out his original investment to play with his earnings.

“There was a wave of support in the DJ scene.” They have a good understanding of technology and are a little wild and speculative. That’s how I first learned about it.”

The crypto beats have to come to an end sooner or later. “If you wanted to remain around in 2018,” Melker adds, “you really had to defend it to yourself, and you probably went far deeper down the rabbit hole to comprehend the value of the movement.” He started to comprehend the basics of Bitcoin and “understand the purpose of various altcoins.”

 

 

Scott Melker on defying the odds with crypto trading – Cointelegraph MagazineMelker has long been a favorite Cointelegraph commenter.

 

 

Trading

Despite having invested in hundreds of tokens over the years, Melker feels that “Bitcoin is the most significant asset ever produced” and that everyone should try to have some exposure to it. According to him, Ether is approaching Bitcoin’s level of prominence and may have greater upside, while altcoins are similar to individual speculative technological investments.

Melker met Christopher Inks of TexasWest Capital, who became a mentor to him, shortly after switching his Twitter tune from music to crypto in 2017. Melker took on the role of analyst for Inks’ fund, offering charts and trading strategies. He explains that he did not trade anybody else’s money and that he does not have the necessary permissions.

 

 

 

 

The Wolf underscores that trading, whether in equities or cryptocurrency, is difficult. “To trade full-time for decades is like being a unicorn,” he says, adding that the crypto markets are particularly severe since they run 24 hours a day, seven days a week, with no downtime, denying traders the chance to recuperate when markets are closed. Of course, you don’t have to trade all the time; Melker only trades Bitcoin two or three times a year using leverage.

A peculiar characteristic of trading is that as one’s portfolio rises, so does the amount of bets one needs make to be successful – otherwise, it’d be like taking out $10,000 in casino chips and spending the whole evening making $1 bets.

“You have to be prepared to crank up the amount of your transactions as a percentage when your portfolio reaches a certain level — and those figures may start to get uncomfortably large.” 

 

 

Scott Melker on defying the odds with crypto trading – Cointelegraph MagazineMelker began his career as a DJ in 1998.

 

 

Acquiring the ability to fail

Melker is keen to point out that day traders have a disadvantage. “95 percent of traders fail – they go bankrupt rapidly,” Melker says, adding that individuals who want to be professional traders should expect to lose their money several times. “Most people don’t have the time or the resources to accomplish it,” he argues. Melker put his whole fortune into ARYx Therapeutics in 2012, which went bankrupt. Despite these difficulties, Melker considers himself fortunate to have “learned the hard lessons prior to crypto.” He has discovered that most people who begin trading with cryptocurrencies lose everything due to leverage.

“You must be able to learn on the job and go bankrupt several times while remaining committed.”

Despite the fact that “investors usually always outperform traders,” Melker strongly advises people who are motivated to trade to learn risk management. He says that long-term success is about “protecting your money and allowing yourself to score home runs,” rather than “selling peaks and purchasing bottoms.” He illustrates his point by stating that a trader may be correct less than half of the time and still make a lot of money if they know when to stop their losses. Even one victory out of ten may be a winning formula.

“It’s a numbers game where you take modest loses in exchange for enormous winnings.”

Another tip is to never put more than 1% of one’s wealth at risk in a single deal. This is, however, far from infallible. For example, if 30% of a portfolio is divided over 30 altcoin holdings, all of them will suffer if Bitcoin takes a drop. Ego is the enemy, and emotional connection to positions should be avoided at all costs, which may be even more difficult with NFTs. 

“Your risk management plan is primarily a consequence of your long-term profitability,” Melker asserts.

 

 

Scott Melker on defying the odds with crypto trading – Cointelegraph MagazineMelker was featured in the very popular — and prescient — “How to Prepare for the End of the Bull Run” series published by Magazine.

 

 

Bitcoin DJ

Melker, 45, grew up in Gainesville, Florida, where his parents instilled in him the value of “financial knowledge, investing, and saving.” At the age of 13, he started experimenting with the stock market by purchasing Disney shares with the support of his father. In 1995, he enrolled at the University of Pennsylvania to study anthropology. According to Melker, the school was particularly business-oriented, with a substantial percentage of graduating students being recruited by consultancy and investment banking companies. Of course, the late 1990s coincided with the dot-com boom, and Melker recalls that “it was difficult to escape enthusiasm surrounding financial markets at school like that.” He goes on to say that there was a “up only” mentality, which is common in crypto circles.

 

 

I used to have a goatee, apparently. It was the year 2007. This photograph was taken by Steve Aoki. He was shifting from open format DJ Kid Millionaire to his current EDM persona at the moment. Sexyback was the first song he performed that night. pic.twitter.com/9bN4n5bHbq #TBT

— Scott Melker (@scottmelker) on October 10, 2019

 

 

Melker, who started taking piano lessons at an early age, became obsessed with music and began working as a DJ while finishing his education. This started with home parties, which led to his performing in nightclubs in the city. DJing required significantly more talent and investment back then than it does now, when anybody can easily connect a laptop to a sound system. “This was the pinnacle of the vinyl era. “I had to go with four people everywhere I went to carry all the equipment,” he recalls. With a giggle, he continues, “Hot females thought it was cooler than the piano.”

 

 

 

 

Despite the fact that he had the option of following his colleagues into investment banking after graduation, Melker chose the entrepreneurial path, starting nightlife firm Philly2Nite in 1999 to promote events in the Philadelphia region. He started 101 Magazine in 2001, which he describes as a “lifestyle rag — a magazine covering everything that was going on in Philadelphia, as well as the type of caustic humor that I currently write about crypto.” Melker moved to New York as the firm’s worldwide brand ambassador in 2003 after the magazine was a success and merged with the bigger Frank Magazine.

He has worked as a music director and business development for other organizations, as well as a brief spell in marketing at Vice Magazine. Melker relocated to Miami in 2012 to work as a realtor, but after having children of his own, he returned to Gainesville in 2017 to be closer to his parents.

 

 

 

 

 

Melker continued to perform and create music under the aliases The Melker Project, Funkontrol, and MBS throughout his career. As a consequence of this, he has amassed a sizable Twitter following of 40,000 people.

“One day, instead of talking about music, I started uploading charts and talking about how to make money on the internet.”

He watched his Twitter following decrease by half as he continued to write ceaselessly about cryptocurrency. However, fresh engagements started to materialize shortly after. “People tend to reject it when you want to move from one thing to another,” Melker says. He recalls that when he first mentioned crypto, he was met with obnoxious remarks like as “Shut up, DJ.” 

Melker chose the title Wolf of All Streets “as a message to people that you may be more than one thing” at that time. The moniker stuck, and he makes a point of explaining that it was only a play on words, and that the actual Wolf of Wall Street was a criminal, not someone he aspires to be like.

 

 

Dominance of $BTC

Here’s some Grade A White Hopium from China.

We’ve seen a tremendous altcoin run every time RSI (which is basically a meme on dominance) has been this overbought on Bitcoin Dominance.

I’m not predicting it will happen; I’m simply showing you what has occurred in similar situations in the past. pic.twitter.com/pog7VclA0K

May 28, 2022 — The Wolf Of All Streets (@scottmelker)

 

 

“I get hyper-focused on one subject, and everything else fades away,” Melker says of his abrupt switch from music to cryptocurrency. Melker suffers from attention deficit/hyperactivity disorder (ADHD), similar to former Journeys interviewee Carl “The Moon” Runefelt. “A lot of people in crypto have ADHD,” he adds, adding that he considers it a “superpower” since it helps him to concentrate entirely on his love.

“I kept track of all the major accounts.” I was attempting to learn by responding on their tweets and engaging with them.” Melker’s confidence in expressing his opinions rose as a result of his participation, which was quickly reflected in his follower count. He began producing a newsletter because he thought Twitter was “extremely shorthand,” and it quickly grew into a full-time profession. He used to charge $15 a month and give a restricted free version, but he subsequently changed his mind and made everything free because “I don’t want to monetize my audience in any way, shape, or form.”

Melker seems to be motivated by passion rather than money. However, controversy erupted last year during a market collapse when he was chastised for deleting so-called “shill tweets” about low-market-cap coins whose price might potentially have been changed by a highly prominent account such as his. “My account has expanded to the point where I can no longer tweet about some topics,” he said after the uproar. According to him, the incident led in threats against his family.

 

 

During my DJ days, I used to hang out with a lot of celebs. pic.twitter.com/92ylU3d3Lz

— Scott Melker (@scottmelker) on February 25, 2022

 

 

After the newsletter’s success, Blockworks co-founder Jason Yanowitz approached Melker and suggested he launch a podcast. “I genuinely questioned, ‘What is a podcast?’ since I had never heard one,” Melker laughs. He now considers podcasting to be “the finest profession in the world,” partially because he believes The Wolf Of All Streets Podcast can attract practically everyone.

The concert has become a business, but one with a purpose, thanks to its many sponsors. The main objective, according to Melker, is to “produce material for the next wave” of crypto investors, such as grandmothers or everyday people. He views himself as a crypto champion, and he can readily enumerate the many ways Bitcoin and cryptocurrency expansion will help society. Given the breadth of his YouTube channel, Twitter account, newsletter, website, and podcast — all of which are full of smart, balanced commentary — new fans are likely to find plenty of encouragement.

“I get up at 4:30 a.m. every morning, eager to compose the newsletter. I can’t sleep because I have so many ideas that I want to write down.”

 

 

 

 

“Is cryptocurrency legal?” is a question that many people ask. Scott Melker went from working as an engineer for the US military, to being one of the most successful crypto traders in the world. Reference: is cryptocurrency legal.

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