In this article, I would like to share with you my experience of how I lost money as well as for cryptocurrencies in my investments.
I hope you learn from my bad investments and you won’t make the same mistakes.
1. Investing in lending projects
There are many lending platforms in the crypto realm where you can lend your money or cryptocurrencies and get interested in them.
Most lending projects are scams, however, once the lending companies have raised enough money, they disappear.
The best example of this is probably Bitconnect.
I had invested in Bitconnect myself, even though I was subconsciously aware that with an interest rate of 0-4% a day the platform would not last forever.
When Bitconnect’s lending function was closed, bitconnect paid its users their money and interest in their then worthless Bitconnect Coins. So I had to accept a loss of about 1000-2000€.
That’s why I stay away from lending platforms now and recommend you to do this too.
2. Investments in cloud mining
I have made 2 investments in cloud mining so far, one in Genesis Mining and one in Omniatek Cloudmining for both.
With both investments, I will get less money back than I invested after the mining contracts expire. It would have been an easier solution to simply buy the corresponding cryptocurrencies.
3. Pump and dump groups
Who does not know what that is, these are groups on e.g. telegram who agree to invest a lot of money in a cryptocurrency on a certain marketplace at a certain time so that the value of the currency increases briefly by a few percents and then suddenly sell off the cryptocurrencies the value of the currency drops dramatically.
Yes, I was once lured into a pump and dump group by the promises of 100% and more.
Since I was initially suspicious, I followed some pumps and dumps in the group to find out if this works.
Unfortunately, I was impressed by the quite high increases in the value of 200-400% and my brain switched off.
So I took part in a pump and dump. In the beginning, it went well I bought about 20% of the price according to the instructions of the group, but afterward, it was said again and again that the coins should be held and held and held… The price of the coin rose to over 300% but only about 1 minute later the value of the coin was down by 400% and I panicked and sold with a loss of about 50%.
This was my first experience after that, I tried again and this time I didn’t stop holding the coin and was able to sell it in the last second with a 20% profit.
However, I have concluded that the risk is not worth it for pump and dump groups, so someone always has to win with another. Therefore, I would like to advise everyone against this!