BeInCrypto has collected the stories of two traders about their most nightmarish crypto investments.
Mr. TK and CryptoThib shared their worst anecdotes and gave some tips to avoid making the same mistakes.
The Trust Project is an international consortium of media organisations based on transparency standards.
This Saturday, October 31st, two traders shared their worst experiences of investing in crypto-money.
Funds gone to ashes
The first trader to share his anecdote with us is Monsieur-TK, also a miner and French youtubeur. In his case, it is about two nightmarish investments, through Cryptopia and Cryptobridge.
“[They were] two platforms that were in the ascendancy in 2017 and where I was dealing with a lot of shitcoins” he explained. After managing to generate some gains, he admitted he had been influenced by the “always wanting more” mentality, ignoring the basic princide of “not your keys, not your corners”, and thus failed to take his coins back to his own personal wallets.
Mr-TK then relearned this principle the hard way when both platforms closed, resulting in the loss of virtually all his funds:
In short, the little I managed to gain in trading was almost entirely lost with the closure of both platforms…
With hindsight, he also recognised that these platforms were not trustworthy and “far from being secure exchanges like Binance”.
“I was really, really scared,” he said, “not directly because of the amount of money lost […] but rather to tell me that it might happen to other platforms (even the most secure ones)”. Taken by a “wind of panic”, he then repatriated all his crypto funds to his wallets, using his own keys. That said, he also found himself “off-chain”, unable to sell or buy parts quickly, and missed out on a few major waves of purchases in the process, finding himself a double loser.
As a moral of the story, Mr. TK now knows perfectly well that “one is never safe from a robbery or a hack”, noting that Mt. GOX is the very proof of this. He says he has since opted for “maximum security”, leaving all of his funds on his portfolios and trading only on major trading platforms, before withdrawing his coins as quickly as possible.
In conclusion, he gives this simple advice to all traders:
Leave only the bare minimum on the Bitcoin Bank exchanges, even the biggest ones!
KIMCHI indigestible
On his side, the trader and influencer CryptoThib suffered his worst investment this year with the KIMCHI, in full DeFi frenzy of “food” tokens. “Even after three years of crypto, you can still make BIG mistakes” he admitted, adding that he got carried away by a feeling of frenzy, while he was winning on 90% of his trades.
My folio had swollen like Uncle Andre after Christmas dinner, basically I had become too confident and I wasn’t suspicious enough.
CryptoThib fell off the map when Kimchi Finance then suffered a terrible crash. Still largely winning on all his trades, he didn’t suffer so much from these losses but admits to having kept the “classic feeling of failure after a missed trade”. With hindsight, he recognises a “bizarre” aspect to this situation, not having been able to take “the time to act in the moment when I could have got out of that damned trade many times”.
In the end, it is for him a “nice lesson more”, which taught him what the famous “rugpull” is, when a trader finds himself with the grass cut under his foot.
In the future, CryptoThib believes that he will directly seek to contact the developers of a protocol or check its code before embarking on a new investment. He also reminds us that it is often a question of playing with high-risk tokens :
I know that the risk is high and that absolutely anything can happen.
Translated with www.DeepL.com/Translator (free version)