Buying The Deep Is (Not) Always Wise

540
Buying The Deep

Purchasing The Deep Is (not) Always Sensible: Meet The Investor Who Lost Over $100k Purchasing The Deep Of This Ico

Among the best investment suggestions is to purchase when others are desperate to sell and to sell when others are desperate to buy, or “buy low, sell high,” simple as that. Purchasing the deep might sometimes be smart, nevertheless, some other times it might turn out to be just a “falling knife” (and no one can couch a falling knife).

How effective that recommendation turns out ought to depend on what you are buying as the pathetic following story of this crypto investor. While the crypto markets toppled throughout 2018, the crypto trader potentially liquidated his Bitcoin holdings to buy a new promising ICO, the ERC-20 based Substratum. The SUB token, at that time ranking amongst the largest 50 cryptocurrencies by market cap with an all-time high of $650 million market-cap, was starting to decline along with Bitcoin and the whole market. As the price of SUB crashed, he planned to buy the deep and typical down his entering price.

He acquired over $100k worth of the now tumbling SUB token and increased his position as the bear market went on up to $115k

Binance Delisting: Cashing out just $7K

It turned out that the Substratum project, which promoted the idea of “the different web,” turned out being a complete scam. It was, later on, found that the creator of the Substratum project was betting on investor funds with very little work being finished with concerns to the ICO Whitepaper. In addition, the project had phoney announcements on brand-new collaborations and had a lot of warnings around it.

The SUB token got recently delisted by the major crypto exchange Binance and consequently crashed even more down to a market cap of under $7 million (a 99% loss). Without any other monetary alternative, the desperate trader needs to liquidate what remained from his financial investment: a simple $7,000, following a $115,000 investment.

Binance delisting

Substratum Chart over the past year. a 99% loss.

Indeed, while purchasing cryptocurrencies is never a bad idea, an extensive understanding of a project, the team behind it, and their roadmap goes a long way to protect financiers from heartache. And even if you follow the above completely, if the marketplace belief is bearish like the current year, absolutely nothing is most likely to help.

Likewise, while buying the deep, diversification could be the survival route particularly when it pertains to speculative investments like mid and small-cap altcoins. It’s always recommended to specify a stop-loss. Learning the hard way is never a sweet experience while learning from other people’s experiences might save you a load of money.

Subscribe To CryptoScoop News

Sign Up To The Latest Crypto & Blockchain News
Informed Analysis And Opinions On What Matters To You.
Invalid email address
We promise not to spam you. You can unsubscribe at any time.