Cryptocurrency is surely a booming industry these days but there are some people who have not been quite lucky when it comes to trading digital currency. One such example is Mr. Derek Rose who is a former journalist.
Just recently, Rose revealed that he lost more than $7 million in the digital currency market. However, luck did not abandon Rose in the beginning when he started making the investments. The real problem was that Rose ended up misusing his profits. Whatever he earned through his initial investment in the digital currency industry, he invested that amount in purchasing more coins.
Rose started his digital currency investments way back in 2013 and during that that time the cost of the bitcoins was less than $100. The strategy Rose adopted to buy more bitcoins was that he signed up with Coinbase and he gave the authority to the exchange to take about $25 from his account each week.
This $25 was used up to buy bitcoins. 2017 was the year that brought trouble for Rose. In 2017 the bitcoins hit about $2000 and Ethereum was able to hit about $400. Now, at this point of time Rose became over enthusiastic about the turn of events.
He decided to invest his entire retirement savings into the cryptocurrency market and that spelt doom for Rose. Initially, Rose was a bit apprehensive about withdrawing all his savings but he decided to stick to his decision. Soon the market crashed and Rose had to face massive losses which he had not anticipated.
Another mistake that Rose made was that he ignored the advice of his acquaintances. Rose’s acquaintance strongly discouraged him from making massive investments. Derek’s friends felt that it was fine to hold some Bitcoins but they felt that one needs to be wise with his decision making.
Rose was so confident about the future of digital currency that he even borrowed about $14 million to invest in digital currency but finally he learnt from his experience. Derek still invests in digital currency but he now he is not so aggressive when it comes to investment. He tries to play it safe to avoid losses in the near future.
Rose learnt one thing the hard way and that is digital currency market is pretty volatile and things can change in a matter of seconds so it is viable not to put all the eggs into one basket.