In the almost 3 years I’ve been investing in crypto I made some big mistakes that led to huge and unnecessary losses. I will go over all of them in this article to reflect on my past mistakes.
CRO stake at an all-time high in 2020
I started a stake of 800$ which was almost the full capital I had at that time. Back when CRO was at an all-time high in September 2020. CRO was worth around 16 cents then. 3 months later when the stake was released my initial 800$ was worth around 200$. Because this was the first time I actually experienced a dip I panicked and immediately sold all my CRO realizing a loss of -75%.
Now I look back at this I learned to not panic immediately and look at the price history before buying and staking a coin so I don’t do it on an all-time high.
MANA 20x leverage short gone wrong
In the summer of last year, I decided to trade with leverage which was probably one of my biggest mistakes ever made. I started with 100$ and shorted the top gainers or longed the top losers. This worked out for the first 3 days and made 800$ with it. Then on day 4 in the morning, MANA was one of the top gainers. I opened a short with 20x leverage and went all-in with my 900$. 20 minutes later Binance liquidated me and I lost the 900$.
I learned to stay away from leverage because it will blow up your account at some point because of greed or feeling unstoppable after a few good days.
Trying to catch the Terra Luna falling knife
This was one that happened a few days ago and is my biggest loss yet. As you probably already know Luna collapsed in a matter of days. I tried to catch a bottom and rebound. That was the dumbest idea yet. I went to sleep and woke up to see that trade -98%. I didn’t use leverage so now I’m stuck holding the bag and probably won’t recover this trade.
Never try to catch the bottom of a coin that is collapsing for a quick gain.
The DAO hype (Snowbank & Olympus)
You probably remember the whole DAO hype that started a few months ago around November I think. The rebase tokens paid out an insane APY. This started with OlympusDAO. I jumped in staked and lost 96% of my investment.
Never chase hype without proper research. The DAOs didn’t exist for that long and weren’t really tested on how they would behave in certain market conditions. I found out the hard way.
Everyone makes mistakes. I learned from then and moved on to better ways. Don’t beat yourself too hard on them.
Affiliate Links to support my writing.
Crypto.com -> https://crypto.com/app/rfcmsmenh8
Disclaimer: Crypto investing contains risk. You can lose the money you invest and I am not responsible if you do so.