AN INVESTOR revealed how they lost a fortune three times after buying cryptocurrency based on rumours.
Sharing their story online, the trader revealed the lesson they learned from believing hype around the latest coins.
The investor lost a fortune three times after falling for rumoursCredit: Getty
The trader shared their story as a warning to othersCredit: Getty
The anonymous Reddit user said that when there is a “major announcement” surrounding a coin, that in “99 per cent of the cases” the announcement will make the price of the coin go down.
They claimed that it took them three times to fully grasp this – with the first loss being the most “painful”.
“I think the most painful one was the Cardano smart contracts,” they wrote.
“Everything about the announcement seemed legit: It’s not a sh**coin, Smart contracts are a thing and there was a lot of hype.”
Cardano was launched in 2017 by Charles Hoskinson – one of the co-founders of Bitcoin rival Ethereum.
However, as soon as Cardano went live, its price tanked leaving the trader at a huge loss.
But the keen investor didn’t give up on new coins and bought into SHIB after hearing rumours that it had been found in Tesla’s source code and would potentially be used as a payment option for the company.
Shiba Inu is a coin that was created off the back of Dogecoin, which has the same dog as its logo.
Dogecoin was originally a joke cryptocurrency that was based on the Doge meme.
Tesla founder and CEO Elon Musk is known to be a fan of Dogecoin and has been nicknamed the Dogefather.
But the rumour about SHIB turned out not to be true and left the trader in the red once again.
The third and last time was before the new coin Matic was announced and the trader bought up the coin too close to the announcement date.
“Clearly, it tanked,” they wrote.
“Anyway, don’t believe in rumours and hype, just stick to your usual crypto plan.
And this trader isn’t the only one to lose a fortune because of Bitcoin.
One person spoke about how their life was destroyed after using all their savings to buy Bitcoin which plummeted to just $350 a coin.
Posting to Reddit seven years ago, the investor revealed how they were forced to sell their Bitcoin which today would be worth $4.25million (£3.2million).
Giving up all hope on …….