Sydney cryptocurrency millionaires reveal investment tips as market plunges
With a growing number of people experimenting in cryptocurrency markets we asked NSW’s self-made crypto kings and queens how to find success where others failed.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
As the cryptocurrency market continues to plunge amid concerns about global regulation, the Sydney crypto investors and entrepreneurs who made multimillion-dollar fortunes investing in the space have shared their advice.
From so-called crypto anarchist Sergei Sergienko to entrepreneur Kain Warwick, Sydney’s crypto millionaires have one thing in common – they took a plunge on cryptocurrency when no one else would.
But as the market continues in freefall amid the Russia-Ukraine crisis and concerns about aggressive central bank tightening, many are questioning whether digital currency is the right investment.
Whether you’re starting out or are a seasoned investor, Sydney’s crypto kings and queens all believe there is still a fortune to be made in cryptocurrency – but say it’s all about the right approach. Here’s their advice.
Sergei Sergienko – $500 million
From humble beginnings as a Russian immigrant living in housing commission in Sydney’s southwest to multi-millionaire crypto anarchist, Sergei Sergienko is one of the city’s biggest success stories.
The-39-year-old migrated from Kamchatka in Russia in 1996 because his family didn’t want him to be conscripted into the Chechnyan War. At that time, he couldn’t speak English and his family had just $10,000 in the bank.
From there, he “worked right down from the bottom,” studying at St Gregory’s College in Campbelltown before going on to obtain an economics and finance degree.
His big break came when he started researching the cause of the GFC and realised that was how Bitcoin was created.
He saw big returns pouring money early on into coins like Bitcoin, Ethereum, Lisk and Emma coin.
“At this time, I realised it was something special,” he said. “Everyone thought we were mad.”
He now has a net worth of around $500 million and owns more than 100 different cryptocurrencies.
He believes there is growth potential in projects relating to learning to earn crypto and education for crypto but believes people should stay away from crypto gaming.
“But that’s just my opinion and don’t invest more than you’re prepared to lose,” he said.
“All rules of investment should be followed, like diversification. If you buy Bitcoin and Ethereum, don’t think you’re very diversified because they’re similar.”
Having experienced poverty first-hand, Mr Sergeinko is now focused on helping the world’s bottom two billion through his company Chrono.tech, which streamlines global access to work and payments.
“It’s about teaching farmers in India who can’t even read how to use fertilisers correctly so it’s pretty gratifying as far as karma is concerned,” he said.
Kain Warwick – $600 million
Ethereum entrepreneur Kain Warwick has transformed the cryptocurrency space with technology and become a multi-millionaire in the process.
The 41-year-old founded Synthetix, an Ethereum based synthetic asset issuance platform, from his Bondi home in 2016.
The platform revolutionised cryptocurrency by allowing investors to lend their cryptocurrencies, giving people exposure to assets without owning them.
He first became involved in crypto in 2015 when he founded Blueshyft, a payment gateway allowing people to make cash payments for digital goods. When a friend of Matt Hanbury first approached him about the project, he initially turned it down to focus on earning a more stable income as a consultant.
“After a few months, I met Matt. I came in and started kind of looking at projects a little bit more deeply and decided to start Blueshyft,” he said.
He first invested in Bitcoin in 2015 and then in 2016 expanded to other coins like Ethereum and selected ICOs.
His main advice to new crypto investors is to manage their risk through diversification. “My advice is always start with things like Bitcoin and Ethereum, which have kind of demonstrated some longevity over the last decade or so and make sure it’s a small part of your portfolio so you have some exposure without being overexposed.”
Riding the highs and lows of the market is also important, he says, to avoid pulling out and losing money when the market is down.
Kain has recently established a family office, Synthetic Ventures, focused on backing innovative founders.
Craig Cobb – multi-millionaire
Professional trader Craig Cobb has made a fortune through his crypto trading training program TraderCobb.
The Sydney resident started investing in Bitcoin, Ethereum and XRP while working as a professional trader in 2017 and has been trading exclusively in the digital currency exclusively ever since.
While he won’t disclose his net worth, he says his portfolio has ballooned to a multimillion-dollar figure.
He owns a training academy that claims to teach beginners how to profit from crypto trades regardless of the market direction. He also hosts a podcast called The Trader Cobb Podcast.
He believes the potential returns from investment in crypto outweigh the risks but has warned naive investors can run into problems if they’re not risk averse.
“People do see crypto as a get rich quick space but when people getting rich, you’ve got people getting poor even faster.”
With the crypto market diving in recent weeks, Mr Cobb’s main advice is to invest for the long term and educate yourself about the currency.
“If you build a solid portfolio for say, a five year plan, you’ll have things like Bitcoin and Ethereum you won’t be controlled by your emotions and will accept the volatility but have faith it’s going to be around in the future,” he said.
“You’ve also got to understand the market. Where there’s liquidity, there’s trends.”
His other advice is “try not to buy when the market is running hard” but pointed out that “there’s never a bad time to be dollar cost averaging.”
Fred Schebesta – $340 million
The Finder.com co-founder went from working at a Pizza Hut call centre to creating a multimillion-dollar business.
While he is known for his success as the founder of the Finder.com comparison site, which made him one of Australia’s youngest self-made millionaires, he has also been hugely successful in the crypto space.
In 2017, he bought Bitcoin when it was worth just $4,000, a move that would go on to earn him a fortune.
He also hosts a daily crypto talk show through Finder.com and is hedging his bets on the future of crypto with big plans to create the first crypto bank of Australia.
Queenie Tan – $500,000
Crypto YouTube guru Queenie Tan was working in marketing at a fintech start-up in 2017, just two years after she had dropped out of university, when she discovered cryptocurrency after her friend told her it was the future of currency.
Within two years, she would buy her first home and within six years, she would create a net worth of almost $500,000 investing mainly in Bitcoin, Ethereum and Cardano. While she may not be a millionaire, she is on the way to becoming one.
“My first crypto investments were back in 2017. I was investing in anything and everything and it was addicting because the price kept rising,” she said.
She learnt the hard way the value of riding the bull and bear markets after her portfolio dropped 90 per cent when the market crashed in 2018.
“It’s interesting to see how quickly people’s minds change about it when the price of crypto drops! I’ve learned a lesson that it’s important to understand the cryptocurrencies I invest in, that’s why I only invest in three. And that it’s important to understand that it’s a volatile investment,” she said.
Ms Tan says her most valuable tip to investors is to not pull out when the market plunges.
“You do you! There’s a lot of noise out there, but I think it’s important to only invest in things you have conviction in, that you will hold onto even if the price drops. Don’t invest because of hype.”
Always seek professional advice before investing money. If you need financial help, contact the National Debt Helpline on 1800 007 007.
Revealed: Haylen’s 446km taxpayer-funded trip to visit winery
The Transport Minister summoned a Sydney-based driver and van to her holiday house in Lake Macquarie so she and her friends could be chauffeur-driven to a winery, logging 446km in one day.
Great Parent Survey: Aussie celebs reveal biggest family challenges
Calling all Aussie mums and dads – we want to hear your views on the challenges of parenting, from screen time to bullying and budgeting. Plus read what famous parents have to say.