The Billionaire Crypto Trader

Let's talk about a crypto trader who ends up building one of the largest crypto exchanges in the world today. After Sam Bankman-Fried graduated from college, he joined one of the largest trading company in the world and they do constantly buying security to provide liquidity for the stock market. Jane street has been trading security for years and they have been making billions of dollars. They do not trade in the US alone, they are also International market makers for many countries and have many different people for different countries listed in their ETFs. With the features of Jane streets firm, US investment can know with is going on in the international market with relation to the stoke exchange market. No doubt that international trade can provide huge income, the problem is that investors will have to deal with some issues regarding time zone and exchange rate differences.

Back in 2017, Sam Bankman-Fried discovered a loophole in the crypto market that could make in fortune. He discovered there was a huge gap in the price of Bitcoin in the US and Korea and he want to take advantage of the market. He raised about 1 million dollars but the problem was that Korea's capital control have limits on foreign transactions. He couldn't use Korean exchange because wouldn't scale but he discovered the same loophole Japanese exchange, it is that the premiums were lower. Even though the difference was not much, can still make a lot of money with it. He knew the opportunity wouldn't last forever, so he partnered with his roommate back in college. They start a company called Alameda Research, even though they have started a trading firm, there was so many obstacles to due with before this company started taking advantage of the market price differences.

Sam had a problem with his bank when started depositing money into his account because those days, banks don't want anything to do with crypto. Alameda also had a problem creating a bank accounts as well. But they managed to solve things. Creating a Japanese bank account is just the beginning and they had to take advantage of the market because the price difference couldn't last forever. Their company wanted to repeat the trade before the trading opportunity disappear. They had to through a lot of processes to get the transaction done such as buying Bitcoin in the US at a lower price, transferring the Bitcoin to Japan, and selling the Bitcoin for the Japanese Yen also they would have to convert the YEN to US dollar. This is what they had to go through and they would repeat it multiple times a day. The trading opportunity only lasted for some weeks before disappearing.

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He created software that could help trade faster and with the help of his team, they worked together to build a company that is making 5 billion dollars per and makes 1 billion dollars per year. Sam Bankman-Fried discovered a problem with some exchange platforms. The problem of liquidation and time-wasting trading techniques. He also took his time to study how some exchange platforms are faking their trading volume. So he decided to create his exchange platform even though he was not sure if people would use it. He decided to relocate to Hong Kong to start a crypto exchange platform because the process of creating a crypto exchange platform is long.

Sam's team moved to Hong Kong to start up FTX, they wrote the code and do all the necessary things in less than six months. Sam's term was fast and their platform quality was not compromised. FTX has interest features and offers the lowest trading fees. FTX moved from carrying out 30 billion dollars from early 2020 to facilitating over 1 trillion dollars by late 2021. With the huge growth in trading volume, FTX is making 2 million per day. Sam's moved Alameda and the FTX company because of the good crypto regulation in the Bahamas. For a long, FTX was not running in the US because it tough regulations but they created FTX.us in 2020.

They are also expanding the business to several business lines such as FTX pay, and FTX nft marketplace. Not forgetting that they also have VC funds that would invest in cryptocurrency, web 3, and gaming products. FTX is also a representative token for some stocks that would allow people to trade Tesla, Google, and so on. Sam and his team are doing a great job to make the world better. Each member of the team choose their strategy to give back to the community and the FTX also donated 1% of their net trading fees. No doubt that Sam and his team are smart.