Investor took out $20k for debt consolidation, put it in crypto, lost it all

10 Dec, 2018
by Arthur Sillers
News
Investor took out $20k for debt consolidation, put it in crypto, lost it all

 A Reddit post from today highlights the risks inherent in crypto investment, noting that the poster took the $20,000 loan he got for debt consolidation, put it into cryptocurrency. The post solemnly includes, ‘I’m wondering the extent of the troubles my stupidity will bring me.’

The poster says that in addition to the debt he already took the loan out against, they are now ‘paying a total of $1300 in debt payments and the total interest hitting me is $700 a month.’ While anyone with any investment in cryptocurrency is likely praying to the decentralized gods for a crypto turnaround, this individual sincerely needs something to turn around soon.

The anecdote is yet another reminder that one should absolutely not invest something in cryptocurrency they couldn’t afford to lose. The market is simply too volatile and new for any investment to have any sense of security. Crypto is interesting in this way, as it attracts investors with little experience (and often with little starting capital) despite being one of the most challenging markets for even veteran investors to make correct predictions in.

While most in the thread called out the poster for essentially gambling away money he sorely needed, some gave advice, and one user noted that ‘You didn't gamble it, you invested it. Stupidly, perhaps, but all investments are gambles.’ Indeed, all investments on some level are gambles, but sometimes the stakes are just not worth the odds.

Read more: Always back up your wallet! Investor had computer formatted, losing $170k in BTC

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage