Even in an emerging cryptocurrency market, it is easy to lose money if proper risk management strategies are not followed. Here is the story of an investor who lost everything …
As the bull market heats up, one can easily get caught up in success stories. However, it is very important to know that not everything is rosy – there will be losses. It can hurt, especially if you are unprepared.
An investor tweeted how he lost his entire $ 185,000 portfolio in just 3 weeks. Losses can also be verified with the Ethereum address.
A thread on how I went from $185K to $0 in exactly 3 weeks.
— rgrpark (@rgr_park) April 29, 2021
How did the cryptocurrency investor lose everything?
According to the investor, on April 11, “the altcoin season was in full swing” and invested in robust projects with relatively low volatility. However, he was impatient and began to overtrad Uniswap to make faster gains. With the market timing strategies also going wrong, the situation got to a depressing point and eventually made extremely bad trades. This resulted in more than 50% losses.
On April 20, he transferred a large amount of desperation to a high-volatility
cryptocurrency with less solid underlying factors, but which he thinks will gain faster. This pattern continued. Instead of playing medium and long-term games, he continued to invest his money in more volatile / risky currencies to quickly regain his portfolio. Eventually, there was a “rugpull” case on a coin he deposited, and he lost almost everything.
What can be taken out of here?
It may be useful to keep in mind that gains cannot go on forever, bull markets cannot last forever. In addition, investors are advised not to act on their emotions. In addition, each investor is recommended to invest according to their own risk appetite. For example, an investor whose risk appetite is limited to fluctuations of 10-20% may choose to stick to large cryptocurrencies with larger market capitalization, according to experts.