‘Stupid Money’ Account Lost $2 Million in USDC in Half Year, Here’s How Not to Trade Ethereum
The recent rise and fall of Ethereum’s price has prompted some investors to engage in risky behavior. Many have blindly followed the trend, buying into Ethereum after the price has risen and panic selling when the price drops. However, such actions can be dangerous and result in significant losses.
A recent example of this is a trader who purchased 7,135 ETH with 12.25 million USDC from Sept. 9 to 12, 2022, when the price of Ethereum had risen by 10%. Unfortunately, the price of Ethereum began to drop shortly after, and the trader sold all of their Ethereum on Sept. 16 in a panic, receiving only 10.51 million USDC for it. This resulted in a loss of 1.74 million USDC in just one week.
2/ The stupid money bought 7,135 $ETH with 12.25M $USDC from Sept 9 to Sept 12, 2022, when the price of $ETH has risen by 10%.
After buying, the price of $ETH began to drop.
He sold all $ETH on Sept 16 with panic and only got 10.51M $USDC.
Lost 1.74M $USDC within a week! pic.twitter.com/YBpCYZlEok
— Lookonchain (@lookonchain) February 22, 2023
Later, the same trader bought 4,489 ETH with 7.65 million USDC on Feb. 16, when the price of Ethereum had risen by 10%. However, when the price of Ethereum dropped again, the trader sold all of their Ethereum in a panic, receiving only 7.33 million USDC back. This resulted in a loss of 324,000 USDC in just one week.
These actions resulted in the trader losing over 2 million USDC in just half a year due to blind buying and panic selling. This serves as a cautionary tale for other investors, who may be tempted to follow similar behavior.
It is important to remember that missing a buying opportunity is not the end of the world. Patience can be a valuable asset in the world of investing, and waiting for the next opportunity may be a wiser choice than blindly buying into a trend.