The tremendous growth of the digital asset industry from $0 to currently $3.13 trillion has enticed millions of traders and investors. Many users invest in various cryptocurrencies to earn profits. However, profit-making ability is not for everyone. Some investors trade cryptocurrencies but end up with no returns and learn hard lessons from their engagement. According to Lookonchain today, a crypto trader has lost 835k within the past six days while trading the Official Trump token.
Trader lost $835k in FOMO
Crypto trading is a skill that everyone can learn. Most importantly, investors need initial capital, appropriate skills, and the right timing to make gains. In most cases, this approach works well and investors earn gains.
But sometimes, traders make losses due to the influence of multiple factors that come into play. This is what occurred to this trader. He saw the opportunity and invested in his preferred token but applied the wrong skill, which made him lose huge amounts of capital.
In fear of missing out (FOMO), this trader purchased the Official TRUMP meme coin six days ago. He has been buying the tokens at high prices and selling them at low. As a result, he has lost $835,000 while trying to trade the token. He is not the only investor experiencing losses in the token. Recently, many people have been influenced by the hype surrounding the Trump token.
Lessons to learn
The trader appears to have learned from his trading mistakes. Today, he spent $1.6 million USDC to buy back 95,657 TRUMP at a high price, hoping to make a profit.
It is clear the investor has no adequate experience in the market and cannot take risks. If he truly wants to make returns in the crypto world, then he needs to buy at low prices and sell at higher.
Secondly, he needs to diversify his portfolio by investing in several tokens and holding them for longer. The ability to spot and invest in new and little-known tokens with growth potential can help him grow his investment. Lastly, having patience and analyzing the market for token acquisition and offloading is a great skill that serious crypto traders follow.
