How to lose money in cryptocurrency ( Episode 1)

[Dowenship]

Totally lost, first what is LP, what is OM, also the procedure you enlisted here is it all about staken or providing liquidity to some pairing and is there any profit...

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.

 

[Josemendez]

Totally lost, first what is LP, what is OM, also the procedure you enlisted here is it all about staken or providing liquidity to some pairing and is there any profit...

OM is the native token of the MantraDao crypto project. LP is generated when two coins are merged together as liquidity. You generate reward for providing liquidity.

 

[Senator]

For those learning or wanting to have a feel of what it is like to buy a particular cryptocurrency. They should buy a little amount of say the Bitcoin and hold it for sometime and see what their Bitcoin will amount to after a little longer. They'll start to understand the dynamics

 

[Kingstone]

I haven't invested in crypto before because I think there is much to be learned and so many factors can hinder one's profits. These factors are not even under our control. That is why I choose to receive money in coins and trade binary.

 

[gammarays]

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

Yes,Litecoin is one of the major tokens and I believe it will experience it's bull in few days to come. Other coins like Bitcoin cash are experiencing a good time after the crash in price months ago.

 

[jeff87]

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

There are a lot of ways to lose money in cryptocurrency.

You just allow scammers to access your account. They will immediately take away money from you.

 

[Grandeur]

New investors in the crypto market should take care in investing in crypto as there are pros and cons to investing in crypto currency, it might take a while to learn.

 

[Heatman]

New investors in the crypto market should take care in investing in crypto as there are pros and cons to investing in crypto currency, it might take a while to learn.

Seriously, it's never really ever easy to invest the right way because there are so many scams that out there that makes it very difficult. So, we all need to be very careful about how to invest.

 

[Josemendez]

For those learning or wanting to have a feel of what it is like to buy a particular cryptocurrency. They should buy a little amount of say the Bitcoin and hold it for sometime and see what their Bitcoin will amount to after a little longer. They'll start to understand the dynamics

Bitcoin has gotten to a level that buying small amount won't really give us much profit , we need to buy a substantial amount to be able to benefit from the coin during bull

 

[Grandeur]

Seriously, it's never really ever easy to invest the right way because there are so many scams that out there that makes it very difficult. So, we all need to be very careful about how to invest.

It's all because of our get rich quick mindset that we most times fall into these scam sites because of their mouth watering offer, we should just learn to be patient.

 

[Josemendez]

Seriously, it's never really ever easy to invest the right way because there are so many scams that out there that makes it very difficult. So, we all need to be very careful about how to invest.

Actually it is very easy to do so. The only issue is that we fail to make the proper research we need to do before investing our funds. This is one of the reason why we fall to scam

 

[Dowenship]

OM is the native token of the MantraDao crypto project. LP is generated when two coins are merged together as liquidity. You generate reward for providing liquidity.

Oh.... I think i get that of LP easily because have once read about it but still confused concerning OM... thanks anyways i will search more about OM.

 

[Bookwormlux]

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?

Selling is usually when you feel you have made enough profits. Like you can sell after making just two percentage profits, or wait longer to hope on a 100 percent profits.

 

[eLdavis]

Selling is usually when you feel you have made enough profits. Like you can sell after making just two percentage profits, or wait longer to hope on a 100 percent profits.

Yes, selling is usually based on the individual. You can decide to sell at anytime you feel you have made your required target profit.

 

[kayode10]

One of the easiest ways to lose money in cryptocurrency investment is to turn everything into betting. use take your money on different coins with the hope of making profit without any research.

 

[Josemendez]

Oh.... I think i get that of LP easily because have once read about it but still confused concerning OM... thanks anyways i will search more about OM.

OM is the native token of the community GOVERNED cryptocurrency project called MantraDao. The community focusses on lending and borrowing. OM is a good coin to holdl

 

[Setfragil]

To avoid losing money in cryptocurrency, we need to be careful with the type of coin and token we deal with and not be too greedy in buying the dip.

 

[Mika]

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.

If you are not patient enough to wait until the price begins to surge, it is less likely that you are making money from your crypto currency investment. Holding is the key.

 

[Bousine123]

Nice write up my friend. This information will surely be useful to persons who have no knowledge of the Cryptocurrency market. And also wants to invest.

 

[kayode10]

The simple way to lose money in cryptocurrency investment is to look for one asset that doesn't have popularity and invest your money in them. Just make sure you buy them in large quantity.