In a bid to double their portfolio within a short time, some investors and traders have abandoned cryptocurrency projects with solid foundations in search of green candles.
While some investors were lucky to record tremendous gains doing so, others were left scratching their heads as they wished they could go back in time and do better.
The latter is the case of a Twitter user who explained how he lost everything as he tried to become an overnight millionaire in the industry.
How the trader went from $185k to $0
According to the trader who goes by the username @rgr_park on Twitter, he went from having $185,000 worth of cryptocurrencies in his portfolio to $0 within a space of three weeks.
Narrating the unfortunate incident, the user noted that his crypto journey was going pretty well as of April 11, 2021 when his funds were still stashed in reputable crypto projects, including Radix (EXRD).
However, greed got the better of him, when he chose to abandon these solid crypto projects for other smaller tokens, which he believed had the potential to bring “faster gains.”
As opposed to the normal trading strategy where traders get to buy cryptos at lower rates and sell high, @rgr_park was doing the exact opposite on popular decentralized exchange Uniswap, which made him lose 50% of his funds as of April 20, 2021.
Determined to recoup his losses, he invested a large percentage of his funds in Snoop Doge (SNOGE) and made few gains.
However, @rgr_park underrated the art of profit taking which saw him give back his gains and some capital to the market.
On April 26, he had just $32,245 left, which he used to buy CryptoCart (CC). The move made him some profit, and he later invested the profit and capital in Micro Launchpad (MICRO).
“It started pumping and I was making a remarkable recovery. I tend to sell too soon, so I kept holding. Things were starting to turn around. Hit 104k by 9:30am,” @rgr_park noted.
His decision to hold cost him everything, as the token dumped massively to nearly nothing in value following a rugpull.
“Might have to apply for a job at McDonald’s soon,“ he added.
Not the first
@rgr_park’s experience is one out of the many investors that have lost massively while trying to get rich overnight trading crypto.
Cryptocurrency trading is associated with significant risks that could make someone lose everything in a flash – one of the reasons why investors are advised to invest with spare funds or at least research about a project before putting money in it.