The highly volatile nature of cryptocurrency prices is one thing that makes the industry exciting and at the same time, very risky.
The price of bitcoin rapidly moved from around $600 in November 2016 to an All-Time High of nearly $20,000 in December 2017.
Of course, many, due to FOMO, bought some Bitcoin worth hundreds to thousands of dollars during the “crypto bubble” period, hoping that the prices would “Moon” further.
It was also in that period that the ICO craze begun. Many novice and experienced investors threw their funds into plenty of ICO projects – both legit and the fraudulent. Most of those ICO tokens, are worth nothing today.
Sadly, the bullish bitcoin price, which bolstered the entire crypto markets came crashing down sooner than expected. From $19,800 in December 2017 to as low as $3120 in December 2018, then a year-to-date high of $13,880 in 2019, and currently struggling around $8000.
Back to the present
Although not many people like to admit that they have lost money, whether in buying Bitcoin or other altcoins, a recent survey revealed some numbers. This can provide a valuable lesson and a reminder to take extra caution when investing in the cryptocurrency industry.
The survey tried to find out the positions’ outcomes of crypto hodlers who bought their cryptocurrencies between 2017 and 2018.
On the question “How much money did you lose in Dollars by buying Crypto?” following 2,000 replies, 54% of the surveyed said they had lost less than $10,000. 10% have lost between $10,000 and $50,000, 6% have lost between $51,000 and $100,000, while 15% of the voters admit to have lost more than $100,000.
The second question, perhaps, is even more interesting as it seeks to find out how many people have gone into debt for buying cryptocurrencies. Interestingly, 17% admitted they gone into debts for buying cryptos.
Starting a small poll with 4 simple questions. Focus is on people who bought #Crypto since 2017, 2018 and haven’t sold yet. No traders.
1. How much money did you lose in Dollars by buying Crypto?
Yes, you haven’t lost money until you sell, but you know what I mean
Please RT 🙏
— Mounia Rabhi, MSc. 🇳🇱 🇲🇦 (@Mounia_NL) October 19, 2019
Never risk funds you can’t afford to lose
Humans, by nature, are emotional creatures, and emotions like greed, FOMO, regret, and even ego and overconfidence affect our thinking, which leads to irrational investment decisions.
One of the first rules of high-risk investments like cryptocurrencies is to risk only amounts affordable to lose completely, of course, this includes also loans and funds that don’t belong to you. Going into debt for investing in cryptocurrencies is like committing financial suicide.