How do you react when you lose money investing in crypto?

[sincerem]

Losing is not what anyone desire when it comes to trading digital assets, but always know that, it is part of digital asset trading, because it is risky type of investment. Crypto is either win or lose, always know that people will lose for you to gain. And mostly newbies lose in the market for others gain, which is mainly for the experts.

I lost $5 recently trying my hands on a spatial arbitrage trading, which didn't execute according to my plans. I tried to exchange different pairs within short duration of time, so, the market wouldn't go wrong at me. Still I fell into the trap which i was running away from, because it resulted in a loss for me. The fact is that, I tried to initiate a quick transaction using a limit order, but not all digital coin pairs execute automatic using the limit order, so, such delayed my transaction and I couldn't execute it faster, and before I knew the price of BTC which I tried to swap with, came down, and it was only possible for me to exchange using market order and placing it on COS/BTC pair. With several trials trying to gain the system, I was busy losing more. I felt so bad, because I know how it is to lose money that took hard work away to earn.

 

[Mika]

To tell you the truth, until now I have not lost a single penny from cryptocurrency. I invest in crypto currency, I have even invested in meme coins; I trade crypto currency (P2P or trading platform), I do yield farming, I do staking, and I have never lost my money. I have surely made some mistakes, but thankfully my mistake did not lead to a loss. For instance, I bought dogecoin for 17-37 cents, I waited for the coin to gain value but it did not happen, I sold at 25 cents. Well my $500 investment did not make me any profits, but thankfully I did not incur even one cent loss. I soent $130 to buy shib tokens and I am still holding the tokens, and if I sell my tokens, even this bearish market I will not incure any loss. I have been staking my shib coins and I have earned enough shib rewards to recover my loss. I have invested heavily on ADA, and if I sell my ADA, I might encounyer a huge loss, but my plans for ADA is to hold for a couple of years. I have done crypto arbitrage, delay in transaction execution could have made me lose some money, but I cancelled the transaction as soon as I saw the price dropping.

 

[sincerem]

With what I've seen you mention here, you've grown in crypto trading, that's tremendous. I am still learning, progress is better than being stagnant. I never made losses that is unbearable trading crypto. Even the $5.8 I lost recently on a triangular arbitrage strategy isn't all that painful. I know why I lost, I wasn't holding reasonable amount of funds executing, it needs at least $1,000 to endure profit, depending your expertise changing it to the right pair within a given exchange and not moving an inch away. I learned my lessons, and I've developed too on my experience. I didn't learn it from an expert, I took the risk to gain the experience. I've been with arbitrage for some time now, the only thing causing me not making reasonable amount of money in arbitrage trading is capital. If I have reasonable amount of capital, their are coins especially the lower coins, which I'll take advantage of, and execute faster since their transaction doesn't last more than five minutes. I don't look up to BTC and ETH like that for arbitrage. But BTC is more profitable in arbitrage trading than any other coin by far, if you have up to 1 BTC.

 

[maidnagi]

You need to care about your risk management strategies and create a plan on how to react to certain price changes, do not worry about missing out, you only tend to lose if you’re constantly worried about how fast you want to cope. Take it at your own pace and you’ll shorten the scope of losing all your money.

 

[btaliat]

No one will feel okay losing money. In fact people will feel dejected. Personally I have lost money in crypto before as well. I have involved myself in bad trade which makes me lose some of my money. The only thing about me is that I allow everything to teach me lesson. And ever since that loss, I have been trying my best to learn the rudiments of how not to lose again.

I have learnt the risk management involved. I have learnt that most people are being affected by two major factors while it comes to crypto. The first thing is that we do fear of losing. So most time when the price comes down against our expectation especially in the spot trading, people tend to involve in panic selling. They sell off their coins not minding the loss. I have tried to curb myself on this. I do leave my coin no matter the percentage of loss it may incur.

Another factor that allows for loss is the fact that we are naturally greedy. We always want to make more than we desire. Most time even when we have met with our target, we still want to make more until the trend start going downward and we begin to lose all what we have gained.