An Expensive Lesson Learned.

6 months ago
58 in dash

I was just talking with a friend on twitter about DASH cryptocurrency. Before the rebranding to DASH, it was called DARKcoin. It was during this time that I made the most expensive mistake of not only my crypto trading career, but probably my life. Apparently my friend had made the exact same mistake. I'm going to share with you the most expensive lesson I ever learned.

When DARKcoin first came out, there was a lot of controversy about pre-mines, and who owned what as far as coin holders. This caused a lot of price volatility and created plenty of opportunities to pick up some really cheap DARKcoin at times. Even with all the FUD, most people involved in the cryptocurrency space immediately seen that this coin and it's developers were onto something as they promoted the DARKcoin, and tried to tackle the problem of TRUE cryptocurrency anonymity.

The Dood bought a bunch of DARKcoin on one of the dips. A really low buy order got filled and I got some really cheap coin. It wasn't a large amount, maybe about 1500 coins, I can't remember what the transaction cost me, but I remember I got them cheap.

As usual I bought and sold them several times. I was fairly new to trading crypto then and I would sell the "TOP", then buy back on another dip. Often, I would dump my entire position and buy back later at a much cheaper price. This is called "shorting your position"

When DARKcoin rebranded from DARK to DASH I learned the most expensive lesson of my trading career. Never dump your entire position unless you're planning on completely exiting a market. Even then you may want to re-think dumping everything, because this is crypto trading, and anything is possible.

I learned this the hard way, and a year or so later I was watching a stock trading video on youtube and the guy said the same thing. NEVER DUMP YOUR ENTIRE POSITION on a short. The reason for this is very simple, if the price continues to rise, you will have to buy your position back at a loss. Now this also breaks my second rule of trading. NEVER CHASE AFTER COINS. If a coin gets away from you, let it go, the market always presents a re-entry point. Usually!

So DARKcoin rebrands to DASH and like so many coin rebrands it was met with rising coin prices, lots of hype, and the price rising considerably. This is where I made my biggest mistake. What I thought was certain to be a pump, and all the hype of the relaunched coin under a new name, I dumped my full position at what I thought was the "TOP" and it just kept climbing and climbing. Not willing to break my second rule, I never bought back in! What amounted to no more than a few dollars in trading profits would of traded today at well over $60,000 !

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DASH continued to rise and rise, and after it climbed to well over $10.00 I just stopped paying attention. A lot of people made this same mistake during the rebrand and you can imagine the emotions that arise when they realize the opportunity that they missed out on. For me it's the one that got away, and for this reason I rarely sell more than 50% of any position I have in a coin. No matter what, I always hang on to at least 25% of any coins position just in case.

Today, if I would of sold my 25% position of the original 1500 coins, I would of had about 375 coins worth about $42 each for a total of around $15,750 dollars. Live and learn!

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Thanks for reading. Thanks for following! Happy trading everyone!

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67
  ·  6 months ago

GOSH, I am way behind. never traded, never really owned even one bitcoin or dash! i have some steem now though!

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58
  ·  6 months ago

Welcome to the world of cryptocurrency. The best part of STEEMIT, in my humble opinion, is that it has introduced so many new people to the world of cryptocurrency. I think STEEM, STEEMIT and cryptocurrency in general will end up changing the face of social media forever.

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67
  ·  6 months ago

i think so to. exactly what u said is what it did to me. i have peered into too many new things in these past months even in a bid to create posts too. and it is all just endless. mining steem with minds is all just endless. if you decide to sleep, some other steemians are busy awake, mining up something stirring into action again either in a comment or in ur post

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51
  ·  6 months ago

Yes I wish steemit would focus on that instead of all these random articles about aliens and afterlife and philosophy.

This could be a great platform for learning about crypto and earnings while you learn. Such an obvious move that would later developed into far more.

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58
  ·  6 months ago

@ender I post mostly about cryptocurrency, trading, and things cryptocurrency related. I've been working on a bunch of side projects lately and just haven't had the time to blog as much as I'd like, but I've got some post ideas I should be getting up shortly. One of the things I like about STEEMIT is the diversity of the people that use the platform. I've read some interesting stuff on here. Aliens, afterlife, philosophy, crypto, there's room for everyone :) Thanks for commenting, just followed you, looking forward to your posts

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72
  ·  6 months ago

Amen. Diversity is strength.

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72
  ·  6 months ago

You can do it, I have told you --- you are smart, you read a lot, there is no way you cannot learn by everything I see you are posting about man LOL.

I think you are scared, and I understand. I just want you to learn and be comfortable and encourage you again today. Be wise, be prepared, don't be fearful.

You can do it my man! Start small, go to one site, say Poloniex or another exchange, get registered, watch the trends, learn the wallets, and move when ready.

Start with messing around with the cheapest coins, pull the history from 2 days, 1 day, a month, all that stuff and look at the trends.

  • Have a good weekend man
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67
  ·  6 months ago

i am sure you know how really humanly sweet this comment is. it is powerful but also treasureable, your very person was shown in it. i wish you good times. Jehovah God bless you in Jesus' name amen.

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72
  ·  6 months ago

Aw man, that is so nice of you. I need all the help I can get here LOL. I believe in you man. We should all encourage one another.

69
  ·  6 months ago

That's unfortunate, but it's bound to happen. I'm just not much of a gambler, so I don't trade any serious amounts. I know this means I am unlikely to win big, but I have enough to get by.

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58
  ·  6 months ago

I always try to keep things in perspective. I'm no whale by any means. I buy a little crypto here and there and just have fun with it. I find it interesting following all this new tech, and every so often I come across a winner. For me, it's just about supporting the developers, and learning what's up and coming and cutting edge in the world of cryptocurrency and blockchain technology. The trading just makes it a bit more interesting!

68
  ·  6 months ago

Wow, what a story! I have never purchased any crypto, either. Although I made an attempt to buy Bitcoin for the first time last night, simply so I could turn it over into Steem. That attempt failed, but oh well.

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58
  ·  6 months ago

Sorry to hear about your failed bitcoin purchase attempt. Buying bitcoin for the first time can be a real hassle, especially if you're in the US or some other country with strict KYC/AML (know your customer/ anti money laundering) laws. Signing up on a reputable exchange like Gemini or Coinbase is the easiest, and I believe bitcoin.com is selling bitcoin by credit card now. I think there's still a verification process but from what I understand it's not like signing up on an exchange. I've been watching the STEEM charts and I'm waiting to see some sort of bottom consolidation to form. I'd like to buy in soon too. Thanks for commenting and have a great weekend :)

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68
  ·  6 months ago

Wow, I will definitely check out bitcoin.com. Thanks for your help. Have a great weekend, too!

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72
  ·  6 months ago

I know we don't talk anymore on here, but aren't you in Canada just west of me somewhere???? Because I have a guy who owns a service you really need to use then LOL. I am in the BAC with him -- the Blockchain + Bitcoin Alliance of Canada and have dealt with him personally, he is great.

72
  ·  6 months ago

This was a great post!!!!

Very good of you to share your lessons, in such detail like that --- really great post by you!!!!

  • some good lessons and phrases in here -- period!!!!!

Thank you.

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58
  ·  6 months ago

Thank you very much! Glad you enjoyed it.