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Failing Better: Scott Melker Challenges Encryption Probability – Cointelegraph Magazine – Mail Bonus

Scott Melker, better known as The Wolf of All Streets, is a trader and proponent of cryptography that is far more accessible than his online handle could suggest. A former DJ, Melker runs a small cryptocurrency empire that includes YouTube videos, podcasts and popular newsletters.

Scott Melker is open about his initial intentions in the cryptocurrency industry. “I simply came to shop and make money,” he admits, taking part after hearing friends continue on the gold-paved streets of the blockchain world where 100x weekly returns were common. Knowing the more conservative stock market movements of his childhood, Melker was fortunate to learn the right business before entering the uncontrolled cryptocurrency casino.

“XRP was like an ear or something,” he recalls. Crypto was also popular in the DJ community, something Melker runs for the community’s risk premium. He traces his success to a lucky date in early 2016 and soon paid out his initial investment to play with the winnings.

“It was such a shock in the DJ community. They understand technology, and they’re kinda wild and speculative. That’s how I first discovered it. “

The cryptocurrencies soon ceased. The 2018 bear market meant that “If you wanted to stick with it, you really had to justify it to yourself and you probably went much further down the rabbit hole to understand the importance of movement,” Melker explains. He began to appreciate the fundamentals of Bitcoin and “understand the purpose of individual altcoins.”

Melker has long been a popular commentator for Cointelegraph.

Switch

Although Melker has invested in hundreds of tokens over the years, he believes that “Bitcoin is the most important asset ever created” and that everyone should strive to have some exposure to it. Ether almost raises the importance of Bitcoin and could well have more benefits, he says, while altcoins are akin to unique speculative technology investments.

Shortly after he changed his Twitter song from music to cryptography in 2017, Melker connected Christopher Inks from TexasWest Capital, who became his mentor. Melker became, to some extent, an expert on the Inks Fund, sharing charts and business ideas. He states that he did not trade in other people’s money and lacked permission to do so.

The wolf emphasizes that trading is not easy, whether it is with stocks or cryptocurrencies. “To trade full-time for decades, you’re like a unicorn,” he explains, adding that cryptocurrencies are particularly cruel because they operate around the clock, non-stop, which means traders have no opportunity to recharge while markets are closed. Of course you do not need to trade all the time – Melker himself uses leverage to trade Bitcoin only two or three times a year.

An interesting aspect of the business is that as your portfolio grows, so does the size of the bet you make to be profitable – doing something else would be like withdrawing $ 10,000 in casino money to spend the whole night betting $ 1.

“Once your portfolio reaches a certain size, you must be prepared to increase the size of your business as a percentage – and these numbers can start to get awkwardly large.

Scott Melker
Melker as a turntable in 1998.

Learning to fail

Melker is quick to point out that the odds are against day traders. “95% of traders fail – they go head to head quickly,” says Melker, explaining that those who want to be serious traders need to be prepared to lose their investors’ assets several times over. “Most people do not have the time or resources to do so,” he says. In 2012, Melker invested its entire portfolio in ARYx Therapeutics, which went to zero. Despite such setbacks, Melker considers himself lucky to “learn the difficult lessons of cryptography.” He finds that most people who first discover trading through cryptocurrency tend to lose everything to take advantage of.

“You have to be able to learn in the workplace and go out often and still stick to it.

Although “Investors almost always do better than traders,” Melker strongly recommends those who are committed to doing business to familiarize themselves with risk management. Long-term profitability, he explains, is not about selling tops and buying bottoms, but rather “as you protect your capital and allow yourself to be hit on the head. He uses the example that a trader can be right less than half the time and stay very profitable if they know when to reduce their losses. Even one victory out of 10 can be a recipe for success.

“This is a math game where there are small losses and big wins.

Another advice is to never stop more than 1% of a person’s portfolio in one trade. However, this is far from certain. For example, 30% of a portfolio could be spread across 30 altcoin positions, all of which suffer when Bitcoin takes an unexpected dip. Ego is the enemy and emotional connection to positions needs to be avoided – something that could be even more difficult when it comes to NFTs.

“Being profitable in the long run is largely the result of your risk management strategy,” says Melker.

End of the bull run part 2
Melker appeared in the hugely popular – and prophetic – “How to Prepare for the End of the Bullfight” series from Magazine.

DJ Bitcoin

Melker, 45, grew up in Gainesville, Florida, where his parents “slammed the importance of financial literacy and investment and savings.” He started experimenting with the stock market at the age of 13 when he bought shares in Disney with the help of his father. He attended the University of Pennsylvania in 1995, where he pursued anatural sciences. The school was very business-oriented, explains Melker, where consulting and investment banking companies hired a large number of graduates. Of course, in the late 1990’s, the boom-and-tune boom came to a head and “it was impossible to avoid tensions in the financial markets at school like this,” says Melker. He adds that it was a “slightly up” attitude that is known in cryptocurrencies.

After taking piano lessons from an early age, Melker became interested in music and began working as a record player while completing his studies. It started with parties at home, which soon led to him playing at nightclubs downtown. In those days, the turntable involved much more skill and investment than today, when someone can simply connect a laptop to a sound system. “It was the whole vinyl season. I had to have four friends traveling with me everywhere I went to carry all the equipment, “he says. “Hot girls thought it was cooler than the piano,” he says, laughing.

Despite having the opportunity to accompany his peers into investment banking after graduation, Melker decided to take the entrepreneurial path and founded the nightlife company Philly2Nite in 1999, which marketed events taking place in the Philadelphia area. In 2001, he founded 101 Magazine, which he describes as “a lifestyle magazine – a magazine for everything that was going on in Philadelphia, along with all the hilarious stuff I’m posting right now. The magazine broke through and eventually merged with the larger Frank Magazine, where Melker moved to New York as the company’s international brand ambassador in 2003.

He worked for various other companies, including as a music director and business analyst and a short time in marketing at Vice Magazine. Melker moved to Miami in 2012, where he worked as a real estate agent, but returned to Gainesville in 2017 to be closer to his parents after having children of his own.

Throughout his career, Melker continued to perform and produce music under names such as The Melker Project, Funkontrol and MBS. Over the years, this led to him gaining a significant 40,000 followers on Twitter.

“One day I stopped talking about music and started publishing charts and talking about the magic of online money.

As he continued to publish about cryptocurrencies indefinitely, he saw his Twitter page shrink by half. But soon a new engagement began to appear. “When you want to go from one thing to another, people tend to reject it,” says Melker. He explains that in his first days in cryptography, he was faced with bad comments such as “Shut up, DJ” when he came up with cryptography.

That was when Melker came up with the name Wolf of All Streets “as a message to people that you can be more than one.” The name sticks and he is careful to point out that this was just a pun, that the real wolf on Wall Street was a criminal and not someone he wants to emulate.

“I get too focused on it and everything else disappears,” Melker explains of his sudden change from music to cryptography. Like previous interviewee of Travel Carl “The Moon” Runefelt, Melker has Attention Deficit Hyperactivity Disorder, commonly known as ADHD. “There is a lot of ADHD in cryptography,” he says, explaining that he sees it as a “superpower” because it allows him to focus entirely on his passion.

“I watched all the big bills. I was trying to learn, I was expressing myself under their squeals, trying to communicate with them. This engagement soon became apparent to many of his followers, and Melker became more confident in sharing his ideas. As Twitter considered “very short”, he started writing a newsletter, which soon began to look like a full-time job. He was charging $ 15 a month and offered a limited free edition, but he later did everything for free because “I do not want to generate revenue from my audience in any way, shape or form.”

In all likelihood, Melker is more driven by passion than money. However, this did not prevent controversy from erupting last year in a recession when it was criticized for to eliminate so-called “shill-tits” associated with low-market coins, as their prices could theoretically have been influenced by a very prominent account such as his. “My account has become so large that I can not complain about certain things,” he said comment following the dispute. He says the explosion led to threats against his family.

The success of the newsletter prompted Jason Yanowitz, co-founder of Blockworks, to contact Melker and suggest that he create a podcast. “I literally asked, ‘What is a podcast?’ like I had never listened to one, “Melker recalls, laughing. Today, he considers the podcast “the best job in the world,” in part because he feels he can get almost anyone in The Wolf Of All Streets Podcast.

With many sponsors, the show has become a business – but not a pointless one. The ultimate goal, Melker says, is to “create material for the next wave” of cryptocurrency investors, such as grandma or the average person on the street. He sees himself as an advocate of cryptocurrency, which can easily enumerate how Bitcoin and cryptocurrency will benefit society. Given the breadth of his YouTube channel, Twitter account, newsletter, web pages and podcasts – which are full of thoughtful, considered comments – it’s clear that new followers will not lack support.

“I wake up every morning at 4:30, excited to write the newsletter. I can not sleep because of the thoughts I want to put down on paper. “


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