Every now and then, we have come across funny cartoons and jokes that portray investors who have invested all their money in cryptos and end up losing everything. Of course some of those might sound hilarious, but in real life, it is very far from being as funny as it sounds to those who have lived it. Oh, yes I should know – I am one of those people.
Iximus
It started innocently enough. I had heard my friends and acquaintances speak of how one could make a lot of money in the matter of weeks in some cryptocurrencies. The reward seemed way too sweet to pass up and so ventured to participate in the crypto futures trading on Binance. But futures can be very risky, so instead of investing my own money, I decided that I’ll take out a loan with an app, which was a big mistake. I decided to get a loan and then reason was to make 2 times more with futures and pay back the loan with interest. Then I would still be left with a clean profit margin above my usable parts, even if unusable parts are added to the total value. Easy money!
The cash that I borrowed saw me log unto Binance with visions of making massive profits running through my mind. First, I was conservative and was investing very little on each bet I was placing on a team. But as the trades kept on yielding its fruit, I become more aggressive. I was investing more money in every trade, aiming at bigger profits with increased risk. For an interval, yes it did! My asset balance at the portfolio increased dramatically and I felt like a trading master.
Finally, rather suddenly, the markets shifted. My open positions were getting closer and closer to being worthless as prices continued to move against me; all the while I’m waiting for the song to change and start making me money. But instead of stopping the red just kept going. I attempted to average down to raise the chances of covering the cost basis-which only made things worse. Not long after that, I was giving back what I was making on paper and part of my actual investment as well. Nevertheless, I never managed to click on the sell button and agree to a loss, still waiting for the situation to become more favorable.
But it only got worse – the hole just kept on deepening. At long last I found myself with no option as to sit back and watch while the last vestiges of balances in my account disintegrate. Just flew away Like that, in the blink of an eye. When I was last fired and left my last sinking ship there was only dry powder left. It was like a meme that I had once laughed at weeks before – I had gone to crypto searching for my cash and immediately bid my money goodbye.
Being a helpless spectator to my shrinking zero figure staring at me like a cruel joke, the only thing that came to my mind was “What have I done?” Not only was I able to get into the red within a very short span of time and lose all borrowed money but I am now even indebted for the loan app repayment and interest too. This is evident through the fact that in my quest for the quick and easy money I ended up destroying my monetary life. It was a bitter experience on greed and speculation as well as the working of leverage.
It is funny when it happens on the Internet and results in various memes, but it is painful in real life when all the money is gone trading in futures. This dream of making a quick and easy fortune had transformed into a nightmare. Do not invest as I did – always minimize your risk by investing only the amount that you are willing to lose.