How can a 500% return be a disaster?

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I bought my first cryptocurrency (bitcoin) in Oct 2013. On average I paid $200 - 3 months later I sold them for $1,000 (on average). A 500% return in 3 months was more than I expected. I would have made much more if I had not made a rookie mistake. I hope that this post will stop someone else from making the same mistake that I made.

I made a similar mistake just last week which is what prompted me to write this post (read on).

If you make the same mistake that I don’t let it stop you profiting 500% in 3 months like I did.

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My 1st Crypto Purchase!

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I bought by my first bitcoins via LocalBitCoins in October 2013. I lost a lot of money on my first transaction as I went in big and lost all of it (100%). This is the backstory.

After submitting my order I excitedly and expectantly rushed to the bank to make my cash deposit (into the sellers bank account). There was a long queue ahead of me. I had only just re-located to Hong Kong and opened a local bank account a few weeks earlier. I was still learning the local ropes and things quickly got worse as the situation became a double-whammy.

Not only was I trying to buy my first bitcoins - but I was trying to buy them in a foreign country.

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The Queue

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The queue of people in front of me delayed me just long enough for me to miss the specified 30 minute deposit window by less than 1 minute. The seller that I was trading with kept my money and didn’t give me the bitcoins that I had bought at $165. I emailed the seller and customer support with the supporting documents to prove that my claim was bona-fide over the following months but alas, it was to no avail. The seller most probably re-sold them to someone else and made a tidy profit as the price of bitcoin soared.

I didn’t let my first experience deter me. I was sold on the concept of the blockchain and decentralized cryptocurrency being a viable alternative to fiat money and I wanted to get into the market ASAP. I went back home and read the fine print and doubled-down by executing another LocalBitCoin transaction within 24 hours of my loss. I knew that the price of BTC was on the rise as awareness grew and I sensed that it was a great time to enter the market, so I did. At that stage I still believed that I would receive the bitcoins from my first transaction as I ‘had proof’ of the deposit.

This time the seller (Steve) was more than willingly to come to my home and accept my cash while he transferred his bitcoins. Fortunately for me - he was a bitcoin trader/evangelist and we spent many hours together that day - he gave me a first-class newbie introduction into bitcoin and the world of cryptocurrencies and he set me on my right path. Not only did he get me set up on BitFinex, but he stayed in touch with me. He also electronically introduced me to the founder of BitFinex, Raphael Nicolle.

Raphael and Steve graciously replied to every email and phone call that I made to them over the next few months. I exited the market with a 500% return (which could have been 1000% if not for my mistake) and returned home after learning that my Mom only had a few months to live - she died 9 months later but that is another story.

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Repeating the Same Mistakes

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Last week I transferred 1 SBD to my newly created Bittrex wallet (test-run) after reading a post from @papa-pepper on the advantages of converting 50% of your author rewards into SBD. The test transfer with 1 SBD was successful. I then made another test-run with 5 SBD and got burned (my mistake). I transferred SBD to my Bittrex steem wallet instead of to my SBD wallet.

I also transferred 2 SBD to randoMwhale which was another mistake.

It seems that I may have learned from some of my past mistakes (transfer small amounts initially) but I still need to take my time reading the fine print apparently. You have to laugh at these things, dust off your feet, move on and learn your lesson.

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Closing Thoughts

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Have fun, it’ s only money. You are quite likely to make much more money through perseverance than you will probably ever lose on a trade.

I strongly encourage you to be very careful when transferring and trading cryptocurrencies and to read the fine print. Only transfer small amounts (test-runs) and pay close attention to what you are doing. Keep your keys private and secure and use strong and lengthy passwords.

New technologies bring new problems with them - accept it for what it is and don't complain. Understand the rules before playing the game, and once again - read the fine print before proceeding. Timing is important. If you’re new to this caper and you’re considering going in large study the market first and ideally hold back and take your time, start small and build your portfolio incrementally.

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I made much more money than I lost (or expected to make) on my first transaction and for that I am grateful. I would have made an extra 500% if I had paid attention and taken my time to do things properly but I prefer to look on the bright side.

Be happy no matter what - learn your lessons and graciously accept that it was meant to be this way.

Steemit and the crypto space is full of great people with great minds, hearts and attitudes. I encourage you to reach out to these people when you have questions or need help.

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This post is an entree for my #introduceyourself series. I will share more of myself and my experiences with you in future posts. I hope that this post was profitable to you and that you won’t make the same mistakes I made. Life is too short and there isn’t enough time to make all of the mistakes that it is possible to make so take the shortcut and learn from others.

Keep learning, keep blogging, keep trading and most importantly have fun and enjoy the journey!

Till next time Steemians!

Follow me for truth @steemtruth

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