Former journalist Derek Rose told New Zealand portal Stuff how he nearly got $ 10 million richer thanks to cryptocurrencies.
I was a little nervous when my ex-colleague Keti Kenny asked me to tell how I lost about $ 10 million in cryptocurrency. I realized that people who read my story will think, “God, what an idiot!” Honestly, I don’t blame you if you think so, it’s true. I ignored the advice of friends, a financial advisor, and random people on the internet as I made bigger and bigger bets on bitcoin and similar instruments that were bearing fruit … until a certain point when I lost a small fortune.
In my defense, I can say that I am not calling you to sympathy. I only lost my money, not someone else’s. The situation was unfolding so rapidly that I turned $ 70,000 into almost $ 3 million by placing leveraged bets on two cryptocurrencies called EOS and Iota over several weeks in November and December..
My first decisions were balanced, made patiently and only after careful analysis. But instead of taking a profit and, say, buying a house, I bought more bitcoins on the same mysterious site called Bitfinex. And these bets also yielded results in the beginning. I invested half a million dollars in bitcoins when they were worth less than $ 8,000. In a short time, their price rose to $ 14,000. Then I bought more (and more). I have done the same with other cryptocurrencies for which Bitfinex provides margin..
At the peak of the market in mid-December, I had $ 7 million in my account and I borrowed another $ 14 million to buy more cryptocurrencies. I gave thousands of dollars in commission every day, but for every $ 1,000 that bitcoin went up, I got about half a million dollars. At the time, Bitcoin was climbing $ 1,000 every day..
I was so elated with success and was in such emotional stress that it became difficult for me to play sports, because I wasted all my testosterone and adrenaline when I checked my portfolio several times a day..
Curious to see what my friends wrote in those days.
“If you’re right, and it turns out that the state of 1 bitcoin will be impressive, then what you already have now should be more than enough. So you can sell a little and withdraw to fiat “.
“I want a sports team,” I replied. “And the yacht. Requests are growing rapidly “.
I actually wrote that. I was going to invest in real estate as soon as my portfolio reached $ 100 million.
“If you’re right, half your bet should be enough,” the same friend wrote. “If you’re wrong, you’re broke”.
“It’s even more interesting,” I replied..
And it really was. Nervous excitement. The knowledge that you are risking a huge amount is exciting.
In fact, I don’t think buying cryptocurrencies is a gamble. This is a complete investment in revolutionary technology. But at the same time, when you make half a million a day, you feel drugged..
So how did I get on this road of madness? I bought the first bitcoins in 2013 when they were under $ 100. I gave permission to Coinbase to withdraw $ 25 from my American bank account every week, thus buying a quarter of a bitcoin for $ 25. Then I moved from New York to New Zealand, and I needed money. I stopped withdrawing fiat and later sold 10 bitcoins for $ 500 to pay off my debts.
Last May, when Bitcoin climbed to $ 2,000 and another cryptocurrency called Ethereum hit $ 400, I decided that I had made a serious mistake that is not too late to fix. A crazy idea came to my mind: withdraw all the money from the retirement account and invest in cryptocurrency. As a journalist, I never had a lot of money, but I was able to save about 10% of my salary from the age of 20. Miraculously, in two decades, I have accumulated $ 200,000, which I mainly invested in reliable index funds that reflected the movements of the global stock market.
“Why not take this money?” – I thought. Unlike my friends, I have not bought a house or started a business. A single man in his forties, I was ready to take risks and stir this swamp. Withdrawing all my savings turned out to be a major hassle – I was withdrawing $ 3,500 every week to avoid hitting Coinbase’s weekly limit of $ 25,000. soon the market bounced.
Tragedy struck on the eve of Christmas. At least now I can laugh at it, after all?
I think it turned out to be a good story. The only reason I’m telling it is to bring you pleasure. After all, I am a journalist, I have collected the stories of hundreds of people. It would be hypocritical not to tell my own story just because I’m afraid of being called a fool.
While I regret a lot, investing all of my savings in crypto is not one of them. I went through a huge shock, but I did not break. After all, despite the liquidation on Bitfinex, I would not have achieved this result if I had continued to keep money in index funds..
For cryptocurrencies, this year starts off badly, but it’s only been a few months. If 2018 turns out to be the same as 2017, I will get my $ 10 million back by the middle of the year..
This time, I hope I can manage them in the best way..
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