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'Stupid Money' Account Lost $2 Million in USDC in Half Year, Here's How Not to Trade Ethereum

Wed, 02/22/2023 - 10:06
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Arman Shirinyan
Sometimes trying to get in at any cost is not best idea out there
'Stupid Money' Account Lost $2 Million in USDC in Half Year, Here's How Not to Trade Ethereum
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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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.

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.

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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.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.