How to lose money in cryptocurrency ( Episode 1)

[Josemendez]

Cryptocurrency has become a source of income to many youths out there especially those who do not have job. Many of them presently earn higher than those in office job. However there is always a disadvantage to anything that has advantage.

Cryptocurrency investors can lose more in many ways especially when they lack the necessary knowledge they need. In this thread I will discuss one of such method.

Impairment loss.
This is a type of loss incured by liquidity providers in a pool when there is a change in the trading pairs they supplied either as a result of a rise or a fall in one / both if the coins. To generate LP token for liquidity , one have to supply two tokens eg, USDT/BNB , BNB/OM , USDC/ETH, etc. Now for someone that supplied $50 OM ( say 200 OM) and $50 BNB ( say 0.02 for example) , amounting to an LP token of $100. If the price of BNB drop while that of OM remains within the price at which he bought , his total LP will be below $100 while his total amount of BNB will increase to 0.021 and the OM remains the same . If the reverse becomes the case , and his BNB rise , his total LP will be above $100 but his BNB will be below $ O.O2 . This will be the same with OM if it is the fluctuating token. NB. This doesn't affect the reward earned.

Is there are way to recover the loss ?
Just as the name goes , it is called impairment loss which means the loss is not deemed a loss if the person didn't sell when the price is high. It is considerably better to withdraw when the price is low because you will have the initial amount of the token you surprised even though the price may reduce , and the reward you generated will be very intact.

If you have any confusion , feel free to drop your question below.

 

[HayKay]

I'll say this thread be bookmarked and posted in the first thread of the cryptocurrency forum. I've learnt more than most people claiming to be traders, they don't even have a basic knowledge of these things

 

[Chibson]

I have gone through the posts and this one was the last one I stumbled upon and I can say that, it is a very good write which is important for prospective investors.

 

[Josemendez]

I have gone through the posts and this one was the last one I stumbled upon and I can say that, it is a very good write which is important for prospective investors.

Actually it is for those who which to invest in liquidity provision. Ordinary investors who hold their coins for a rise do not need to be bordered by it.

 

[Heatman]

I'll say this thread be bookmarked and posted in the first thread of the cryptocurrency forum. I've learnt more than most people claiming to be traders, they don't even have a basic knowledge of these things

Seriously, when it comes to making money and losing money cryptocurrency I believe that greed is a very good saying it's because when you are too greedy with the kind of investment that you're making you're definitely going to lose.

 

[Alexandoy]

Thank you for sharing your insight on the crypto coin. My take on the crypto coin trading is the difficulty in discerning the trend. If you buy today then you might be in a trap although you can also be winning. The next question is when to sell because that is the tricky part. You gain today and you sell tomorrow?

 

[jeff87]

Cryptocurrency has become a source of income to many youths out there especially those who do not have job. Many of them presently earn higher than those in office job. However there is always a disadvantage to anything that has advantage.

Cryptocurrency investors can lose more in many ways especially when they lack the necessary knowledge they need. In this thread I will discuss one of such method.

Impairment loss.
This is a type of loss incured by liquidity providers in a pool when there is a change in the trading pairs they supplied either as a result of a rise or a fall in one / both if the coins. To generate LP token for liquidity , one have to supply two tokens eg, USDT/BNB , BNB/OM , USDC/ETH, etc. Now for someone that supplied $50 OM ( say 200 OM) and $50 BNB ( say 0.02 for example) , amounting to an LP token of $100. If the price of BNB drop while that of OM remains within the price at which he bought , his total LP will be below $100 while his total amount of BNB will increase to 0.021 and the OM remains the same . If the reverse becomes the case , and his BNB rise , his total LP will be above $100 but his BNB will be below $ O.O2 . This will be the same with OM if it is the fluctuating token. NB. This doesn't affect the reward earned.

Is there are way to recover the loss ?
Just as the name goes , it is called impairment loss which means the loss is not deemed a loss if the person didn't sell when the price is high. It is considerably better to withdraw when the price is low because you will have the initial amount of the token you surprised even though the price may reduce , and the reward you generated will be very intact.

If you have any confusion , feel free to drop your question below.

Thanks for sharing your thoughts about losing money in cryptocurrency.

That is why I really study cryptocurrency very hard. I watch YouTube video tutorial on the best strategy in trading cryptocurrency.

 

[Mika]

If you invest in the right currency and if you invest for the long term, I think you don't actually lose money in crypto currency. You should not worry about the dip, instead have patience.

 

[Senator]

I'm just coming across this thread now. This will be very good thread for a lot newbie cryptocurrency trdaers to get free lessons and knowledge on how the cryptocurrency market works

 

[Nurudeen]

This is a good way for someone to protect his or her finance in the crypto currency exchange Business. For me I just but and hold for a very long time and take profit whenever it is needed

 

[joy101]

I think there is no business one can do without losing, actually I have never invested into cryptocurrency before, but investing one need to be careful.

 

[Kingstone]

Truth be told, I am more than confused with everything told here. Not so a fan id cryptocurrency and trading them. I like binary trading more although it is riskier. But the fact that it is not affected by some news and can be traded everytime makes it very good.

 

[Michael457]

I know enough when to sell. My friends are always telling me to hold on and wait it out but I always panic and sell before I see any improvements, then they all lol when I'm sorry and its too late.

 

[Michael457]

If you invest in the right currency and if you invest for the long term, I think you don't actually lose money in crypto currency. You should not worry about the dip, instead have patience.

I worry about the dip. Seriously I don't know how to be patient when I catch a drop and my first instinct is to sell. I would be a rich man by now if I knew patience. And probably better strategy.

 

[Justin]

I have litecoins, when I received litecoins the price was $200 and above. Currently, the price is less than $170, which means I have made substantial loss with my liteocoins

 

[Yusuf]

This is really a good observation from you. I think the best way to make money in the crypto currency exchange Business is just to buy the coin and hold for a long term

 

[gammarays]

I have litecoins, when I received litecoins the price was $200 and above. Currently, the price is less than $170, which means I have made substantial loss with my liteocoins

Yes you made a loss but you should hold it. You lose if you sell at $170. Major crypto tokens are coming back to life now so Litecoin is expected to join the party. If you can hold,you win.

 

[Josemendez]

Yes you made a loss but you should hold it. You lose if you sell at $170. Major crypto tokens are coming back to life now so Litecoin is expected to join the party. If you can hold,you win.

Well said. We only lose if we sell low . This is why long term holdl is the key to a successful cryptocurrency journey. People need to understand it and to also invest in good projects

 

[kayode10]

The easiest ways to lose money in cryptocurrency market place is to take huge amount of money and investment-planning in any cryptocurrency that comes to your mind without proper investigation.

 

[Kelly5]

If you are trading the spot market of any exchange platform for instance, you should be quick to exchange your assets you bought back to stable coins so that you don't lose value of that asset