As a cryptocurrency novice for more than three years, I will briefly review my experience in trading cryptocurrencies.
At the beginning of 2021, Bitcoin surged from $10,000 to $30,000 each, an increase of 300%, becoming popular in the financial world. I learned about Bitcoin's existence through YouTube news.
So, I deposited $1,600 as my principal and, as a beginner, jumped into the Bitcoin market.
Before purchasing Bitcoin, I learned how to trade cryptocurrencies on YouTube. Half a month later, I understood the most basic techniques: "Don't chase rising prices or panic sell," "Don't trade frequently," and "Don't hold your entire capital."
With a nervous heart, I took out 20% of my principal and bought Bitcoin at the then price of $40,000 each.
Later, as Bitcoin rose, I thought I had really mastered the trading skills, so I gradually used my remaining capital to purchase more Bitcoin as its price increased, completing the action of chasing the rise.
However, just as I had fully invested in Bitcoin, the price dropped to $28,850 each between January 18 and the end of January 2021. I panicked, thinking it would continue to fall. Ultimately, succumbing to human nature, I cut my losses and completed the action of panic selling.
But just after I sold, Bitcoin rebounded... From then on, I was caught in the cycle of chasing rises and panic selling without return.
With this strategy, my final holding cost was around $45,000, and my $1,600 was reduced to $1,200. I didn't want to keep struggling, so I held onto it without selling. On March 8, 2021, Bitcoin rose to $61,800 each. I thought it would continue to rise, so I kept holding.
Then things took a turn for the worse; Bitcoin started to drop, falling all the way to mid-July 2021... The price reached $30,000, and I was utterly confused.
During this time, I deposited another $1,000 and discovered that Ethereum had a higher volatility, so I started jumping back and forth between Bitcoin and Ethereum.
Later, I found that altcoins had even higher gains, and eventually, through a series of trades, I lost all my principal.
I lost everything on a couple of altcoins called Luna and USTC. Anyone familiar with the cryptocurrency space knows about the Luna crash event.
The market was extremely volatile. I wanted to take risks and tried to buy in during the sharp decline, betting on a rebound... But it never rebounded.
At that point, I was left with only $200, and I went to gamble on 10x contract trading...
You can probably guess that my principal was wiped out like that.