A CRYPTOCURRENCY investor has revealed how he lost all his money from buying Bitcoin and Ethereum while drunk.
Despite his shaky start in the world of crypto, Josh Ng, from Sydney, has since redeemed himself and has now made £27,000 from trading.
The 24-year-old first dipped his toe into investing back in 2017 when he was in an Airbnb in Tokyo with friends.
As the drinks went down, he and his pals began talking about Bitcoin and Ethereum.
“We heard a lot of hype around the cryptocurrency fad,” the construction worker told news.com.au’s I’ve Got News For You podcast.
“And so we‘re thinking about investing in it.
“My mate talked to one of his mates, a financial advisor or something, and that guy was saying ‘Oh, it can’t fail. Like it’s doing the next big thing. Invest now you can get rich’.
“So well, without doing any research, one night … we pumped a lot of money in, just sat back and went to bed after that.
“The next morning, just a massive crash, like 30 per cent of the market straightaway, which was incredibly inconvenient for us.”
In total he lost around £1,700 on his failed flutter on crypto.
As the price of Bitcoin plunged to £53, there seemed no hope he would get his money back.
But Josh saw speculation that the crypto could bounce back again, and wondered whether now was actually the time to buy at a cheaper price.
This time he decided to do some research and re-entered the market more carefully.
“I was a bit more cautious in the way I entered,” he admitted.
Josh said he “entered more methodically, and just eventually got to a point where I could enter different coins that I knew more about, with a lot more confidence rather than dumping everything into say, ethereum”.
His new approach appears to have paid off and his initial investment of £6,400 has now returned £27,000.
“I haven‘t really put any more money in, just been watching it grow and then taking profits out and putting it into other coins,” he added.
His number one piece of advice for anyone looking to invest in crypto? “Don’t listen to your heart”.
Of course, experts have more specific advice and crypto is a notoriously volatile asset in which to invest your money.
Cryptocurrencies are not regulated investments so there is no safety net if things go wrong and you lose money.
Many cryptocurrencies have a short track record, making them difficult to understand and predict.
Laith Khalaf, head of investment at AJ Bell, said: “Cryptocurrencies are incredibly volatile and this applies in spades to small new coins entering the market.
“If something can go up several hundred percent in a few weeks, then it should come as no surprise that it can fall just as sharply in a short space of time.
“As ever, the golden rule of crypto is never to invest an amount that you’re not willing to lose in its entirety, so don’t bet the house on it.”
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
While Josh has made a handy amount from crypto trading, others have been less fortunate.
One trader revealed he woke up to find he had lost nearly $500,000 on a cryptocurrency scam.
And another said he has claimed he convinced his aunt to invest £150,000 in Shiba Inu crypto – only for her lose tens of thousands of dollars in 24 hours.
Buying any cryptocurrency is incredibly risky.
With any investment, there is a risk that the value of your money could go down as well as up. That means you should only invest money you can afford to lose.
Crypto can be riskier than other investments because they are volatile and speculative – their price often rising and falls very quickly, sometimes seemingly for not reason.
We pay for your stories!
Do you have a story for The Sun news desk?