An INVESTOR has revealed how they lost their assets three times after buying crypto based on rumors.
Sharing their stories online, traders revealed the lessons they learned from believing the hype surrounding the latest coins.
The anonymous Reddit user said that when there is a “big announcement” around a coin, in “99% of cases” that announcement will cause the price of that coin to go down.
They claim that it took them 3 times to get the hang of this – with the first loss being the most “painful”.
They wrote: “I think the most painful thing is the Cardano smart contract.
“Everything about the announcement seems legit: It’s not a sh** coin, Smart Contracts are a thing and there’s a lot of hype.”
Cardano was launched in 2017 by Charles Hoskinson – one of the co-founders of Bitcoin’s Ethereum rival.
However, as soon as Cardano went live, its price dropped leaving traders with huge losses.
But the interested investor didn’t give up the new coins and bought into SHIB after hearing rumors that it was found in Tesla’s source code and will likely be used as a payment option for the company. .
The Shiba Inu is a coin created from the back of Dogecoin, featuring a dog like its symbol.
Dogecoin was originally a crypto joke based on Doge memes.
Tesla founder and CEO Elon Musk is known to be a fan of Dogecoin and has been nicknamed the Godfather.
But rumors about SHIB turned out to be untrue and once again left traders in the red.
The third and last time was before the new Matic was announced and the trader bought the coin too close to the announcement date.
“Obviously, it was destroyed,” they wrote.
And this trader is not the only one who lost his fortune because of Bitcoin.
One person talked about how lives were destroyed after using all their savings to buy Bitcoin, which plummeted to just $350 a coin.
Sign up Reddit Seven years ago, the investor revealed how they were forced to sell their Bitcoin which would today be worth $4.25 million (£3.2 million).
Giving up all hope in cryptocurrencies, traders are forced to sell their investments at a low price or they will lose their home.
But if that trader kept their money in Bitcoin, it would be worth a whopping $4.25 million.
Buying any cryptocurrency is extremely risky.
With any investment, there is a risk that the value of your money could go down as well as increase. That means you should only invest money that you can afford to lose.
Cryptocurrencies can be riskier than other investments because they are volatile and speculative – their prices often rise and fall very quickly, sometimes for seemingly no reason.
Many cryptocurrencies have a short track record, making them confusing and difficult to predict.
This type of investment is also not regulated by the regulator, which means you won’t be protected if things don’t go your way.
The UK regulator has warned that Britons risk losing ALL of their money if they invest in cryptocurrencies.
If you are considering investing in any cryptocurrency, do your research first and invest only the amount you can afford to lose.
Also be wary of scams, as the cryptocurrency market is often a target for scams.
Attention fake celebrity endorsement or social media profiles pushing certain coins.
Risks of buying with cryptocurrencies
Investing and buying with cryptocurrencies like Bitcoin is very risky.
Their value is volatile and the City watchdog the Financial Conduct Authority has warned investors to be prepared to lose all of their money.
Investing in cryptocurrencies is not a guaranteed way to make money. You should also think carefully about making purchases with cryptocurrency.
For example, Bitcoin has experienced dramatic price swings in recent months, and prices can change almost hourly.
Bitcoin price was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% discount. These price movements are risky for a business because you can sell an item with Bitcoin at one price and the value can drop shortly after, leaving you with less money from a purchase or sale.
Similarly, the Bitcoin price has increased by more than 21% since the start of this week, so it can be difficult for buyers to get an accurate idea of the price of an item if its value changes on a daily basis.
https://www.thesun.ie/money/8080316/cyrptocurrency-rumours-lost-fortune-three-times/ I lost my fortune three times after foolishly buying crypto based on rumors… here’s what I learned