Crypto Trading Experience Highlights Risks and Lessons Learned

The individual registered on Binance in 2019 and since then has decided to invest 5-10% of their monthly income into crypto and hold. At that time, diversification was unfamiliar, so all funds were invested in a single cryptocurrency. Initially attracted to Dogecoin during its hype, they later shifted focus after believing its growth had peaked, moving toward a long-term hold in XRP. When XRP’s price fell from a peak of around $3 to approximately $1.3 due to SEC legal issues, they diligently added to their XRP holdings but later reduced contributions as XRP showed weakness compared to other cryptos, eventually stopping around $0.20 and leaving the investments unchanged, potentially heading to zero. In 2024, after studying trading, they applied new knowledge, converting remaining XRP to USDT and starting trading futures. Early trades were successful, boosting confidence, leading to a short on the newly listed token PNUT without adequate knowledge, resulting in losing five years of savings within two minutes. A week later, XRP surged, adding to frustration. Despite this, they view the experience as a valuable lesson. After some time, they dedicated themselves to studying trading and crypto more deeply, approaching a break-even point. This journey highlights that such experiences are common, especially with the risks and psychological challenges involved. They emphasize that mistakes are inevitable in trading, and the key is to ensure losses are manageable, sharing a personal lesson learned from their errors.