Crypto lost

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Crypto lost

Post by snnetteC on Fri Dec 06, 2019 9:14 am
([msg=99837]see Crypto lost[/msg])

Does anyone know anyone who lost money in crypto-trading?
13 Answers
Akram Khan
Akram Khan, Million Problems, Single Solution - Jugaad
Answered Jan 27 2018
Originally Answered: Do you know anyone who lost money in crypto trading?

I know myself pretty well :)

The chain of events that fueled the loss during the recent crash ( also referred to as bloodbath) in the crypto world.

I went against rule no. 1 of crypto trading, Invested more than i could lose. Whether one profits or loses in a trade is both determined by the market and your individual emotions. I lost money to both greed and to fear. But it has been a learning experience and made me more emotionally stable, balancing greed and fear.

The Greedy Me

I bought Bitcoin at different instances and the mean international price was somewhere around $15k and i had then diversified my portfolio into several Alt-Coins (All the other coins except Bitcoin are referred to as Alternate coins). Everything started working well, i got richer on paper when the market was bullish (increasing), but the issue was i did not have an exit plan. I didn’t plan when to sell, it was as if i would hold my investments indefinitely. I stick to the HODL’er (Hold on for dear life) principle wherein you keep on holding your coins no matter what. Therefore, i didn’t sell when some of the coins were already 3x-4x, while the total portfolio was 2 times the original investment. A true HODL’er indeed.

The Fearful Me

Things went south, FUD (Fear, Uncertainty & Doubt) took me over, and the market started crashing. It is a painful experience, especially when you have invested more than you can afford to lose. Moreover, seeing your massive profits turn into massive losses has a deep psychological effect. This is where i panicked and sold the bottom (Not the actual bottom, but close to it). This was the fear of losing my money. Then the prices bounced and i bought back in. This is the fear of missing out.

The Dumb Me

I had diversified my portfolio, but then i wanted quicker profits. That is when i started doing dumb things. I firmly believe that one should not keeps all eggs in a single basket. But then i shifted some eggs into a single basket, and then some more and yet some more; until when most of the eggs ended up in a single basket (Major part of investments was in a single coin). I got emotionally attached to this particular project, and strongly believed in it. The developers failed to deliver an important feature on time, and the investors panic sold driving the price down to the abyss, but i consoled myself, you are a true HODL’er.

The Smarter Me

Now that i have been through the crazy ups and downs of the crypto world, I am a stronger (at controlling emotions), smarter and experienced. I have these tips for a beginner investor.

Don’t panic, don’t be greedy.
Don’t go out looking for the next bitcoin, you will end up being duped by someone trying to project themselves as one.
Look at the fundamentals of the coin you plan to invest in. After due diligence and research, jump in but not all at once. Ladder in whether you buy or sell.

Learn to read the charts - That chart above isn’t gibberish. It has the most important information hidden within, and you need to learn technical analysis to decipher it.

Finally, i would like to end up with a warren buffet quote :

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

Wish you all massive profits. All the very best :)
Remember, “The Harder we Fall, the Higher we can Bounce Back”
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Quora User
Anonymous
Answered Jul 5, 2018

I felt compelled to write this as a form of self-therapy and to make other people aware of what happened just recently. I also decided to include values – not to boast but to give readers an understanding of the gravity of the situation. Sure many people have a lot more money but these are still large sums for the average person.

At the end of 2017 I was looking at investing my savings; property, stock market, whatever really, where I could put a bit of money I’d saved up over the last four years (~70k AUD) and earn more than savings account interest.

My brother suggested I check out crypto and after a bit of research (nothing close to due diligence but still some understanding of what was happening) I went all in on one coin at the start of December.

If ever anyone was asked to pick the bottom of a bull run, I would be the poster child for this. I bought in a collection of coins on the 7th, 8th and 9th of December and the bull run pretty much happened a week later. Once it started, in four days I had already had a profit equal to my savings that had taken four years to accumulate.

I had been looking at an investment property only a few weeks prior that cost 300k – by the time the week before Christmas came around, I could have bought that unit outright with cash left over.

After Xmas and before NYE where the market went bananas, my paper profits went up more than 200k in ONE NIGHT! I specifically remember talking with my mum on the phone, watching my portfolio tick over 900k and later that night it almost touching 1 million.

On average from where I bought in to when the bull run was over, my portfolio increased in value 45k per day.

At the rate it took to save 70k, it would have taken me 56 years to save that amount I’d made in that short time.

And then, the 5th of January came around and smarter people started to take their profits… expectations of further increases never eventuated and the value kept going down. It didn’t fall off a cliff so I could have sold at any point and still made a healthy profit, but being a true HODLer, I kept thinking, it will bounce back, this is just a market correction.

Why didn’t I sell… to be honest I kept thinking it will go higher, so when it boils down to it my greed took over. One million in cash is more money than 99% of people will ever have at their disposal and yet I chose not to sell… regretful? Absolutely.

However I’m still ahead almost double my initial investment, which is probably better than a lot of people and for that I’m thankful.

Retrospectively capital gains tax on peak profits would have been in the realm of 400k so perhaps I’ll get close to my net profit sometime in the future. Time will tell…

From the market peak to where I am now, my portfolio decreased in value 870k… below is the day before it almost touched the mythical $1mil
snnetteC
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Re: Crypto lost

Post by MazerJJ on Sun Mar 22, 2020 1:50 pm
([msg=101620]see Re: Crypto lost[/msg])

I have nothing against crypto but ... all exchanges are in a fever now. How stable is cryptocurrency compared to the dollar? I have savings and I'm worried that the money will depreciate over the next six months ((
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Re: Crypto lost

Post by ToniHN on Sun Mar 22, 2020 2:54 pm
([msg=101625]see Re: Crypto lost[/msg])

I am good at computers but very poor at investing. I have a small crypto package (Monero and Bitcoin). I mined it myself and left everything for a rainy day. What would I do now? I do not know frankly .. If the amount of investment has more than three zeros, then you should pay attention to the services of specialists in this field. I heard a lot of good things about kismetgroup.ca This is an option for those who live or work in Canada. There is nothing more worrying than having large amounts of free money in troubled times(( Using the advice of professionals is a logical step, as for me.
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