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Seduced by marketing and stories of quick fortunes made from investing in cryptocurrencies, an unfortunate Reddit user was duped by the Bitcoin boom and lost all his life savings, published Infobae.
This story is about the user “Prudent_Plum_7644”, who shared his unfortunate experience, as a warning to others. “I completely ruined them, my life savings are gone forever, I’ve learned a hard and devastating lesson”He wrote in the post on the Bitcoin subreddit.
He comments that he and his wife bought 1.7 BTC which, at current values, is equivalent to almost $ 85,000. It took the couple ten years to come up with that amount of money, saving as much as possible and doing odd jobs when the opportunity presented itself.
“I started future operations and managed to convert 1.7 BTC into 2.1 BTC, the classic luck for beginners”, wrote. Unfortunately he put all the funds in a type of trade called “leverage futures”, betting that the value of Bitcoin would continue to rise.
Leveraged investments are not simple investments or for all investors. Leverage means that you “borrow” money, with which you can generate higher profits by investing less money, or lose almost everything or everything, as it happened in this case when the value of Bitcoin fell.
“Of course it didn’t work out, BTC went from touching 50 thousand dollars to 47 thousand and our life savings have been erased“And the affected person added:” I still haven’t said anything to my wife, she doesn’t know it and this is killing me inside. I don’t know what to say to him, I’m just devastated. I can barely look at myself in the mirror. “
Finally Redditor recommended: “Please take my advice, don’t trade guys, don’t fall for these marketing traps like I did.” To verify the veracity of his story, he posted screenshots of his trade, in which he realizes how he lost his investment as Bitcoin fell instead of increasing in value.
Other Reddit users offered their condolences and commented that putting all of one’s funds into a single trade is not a smart move.
Franco Capelo, CEO of the Institute for Technical Analysis, commented: “Diversification is a key element when investing. If you want to reduce risk, the first step is not to put all your money in one investment. And never, for any reason, regardless of who the advice or recommendation comes from, should you invest in something that is totally or partially unknown ”.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.