We always harp on about the importance of careful cryptocurrency investment. Whilst it might be tempting to chuck a wad of cash on an up and coming crypto project, it’s vital that you have to be careful when choosing to invest.
Being careful doesn’t mean you have to be shy, what it means, is that you have to be willing to do your further research. Take your time before rushing into investments. Of course, crypto is time precious and sometimes you have to be quick to get the best price, therefore, don’t read up when the project is booming, do your research in advance and that way, you can be better prepared. The New York Times have recently published an article that shares a few horror stories from investments that have gone wrong, most of which have seen people throw their life savings are cryptocurrency during the 2017 – 2018 cryptocurrency boom, investments that are now worth significantly less, leaving some lives in tatters.
We want to share some of these stories with you.Simply put, don’t make the same mistakes as these people.
You can see the full article for yourself, here.
Kim Hyon-jeong, a 45 year old teacher from Seoul put $90,000.00 into crypto during the boom, here’s what happened to that investment according to the New York Times:
“I thought that cryptocurrencies would be the one and only breakthrough for ordinary hardworking people like us. I thought my family and I could escape hardship and live more comfortably, but it turned out to be the other way around.”
This investment came from a $25,000.00 loan, life savings and an insurance policy. Charles Herman, a 29 year old from the United States made a similar mistake:
“I guess I thought we were ‘sticking it to the man’ when I got on board. But I think ‘the man’ had already caught on, and had an exit strategy. I think I’d like to see most alts go to zero before I feel like the whole space isn’t overpriced. We also saw that Bitcoin isn’t ready for mass adoption and day-to-day use.”
Moreover, Tony Yoo, a 26 year old from Los Angeles put around $100,000.00 of his savings on crypto during the boom. The majority of these investments have now dropped more than 70% since his initial investment. In this instance, Yoo does remain bullish:
“There’s just so much more behind this new wave of technology and innovation that I’m sure will take over our society in due time.”
Finally Pete Roberts, a 28 year old from Nottingham, England, has managed to reduce a $23,000.00 investment to just $4,000.00 as a result of the collapse in the wake of the cryptocurrency boom. According to the New York Times, Roberts said:
“I got too caught up in the fear of missing out and trying to make a quick buck. The losses have pretty much left me financially ruined.”
Whilst it might seem like a great idea at the time, the risk in trading cryptocurrency is very high. It’s a volatile industry existing in a sketchy climate. If it looks to good to be true, then it probably is. If nothing else, let this exist as a warning, share these stories with others and let’s all help each other make better investment decisions in the future.