BITCOIN trading comes with many risks that a buyer found out the hard way – comparing cryptocurrency to gambling.
The anonymous dealer is said to have lost half a million pounds and had to borrow thousands of friends and family as a result.
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Investing in Bitcoin is always a risk that tragically sometimes doesn’t pay offCredit: Alamy
They are now demanding that others see the dangers for themselves before it is too late.
The thing about Bitcoin is that it is unpredictable.
When investing, you need to be aware of the volatility of the cryptocurrency.
Its value can fluctuate from one day to the next, leaving you unaware of what you have in your virtual wallet in the days to come.
This means that you can lose money as easily as you would win – and you could lose all of your money.
This trader learned the hard way, revealing that he lost around £ 495,000 in Bitcoin after playing with cryptocurrency contracts, Vice reports.
You are not the only one losing real money after investing in virtual currency.
Scotland even has a specialized rehab clinic that treats cryptocurrency addiction as it is such a huge problem for the health and financial stability of the British.
The leading cryptocurrency was first launched in 2009, but it wasn’t until 2017 that the price boomed.
However, the user, who lost half a million, said, “Back then, Bitcoin was everywhere.
“People were talking about cryptocurrencies at work, while major newspapers published articles with exciting headlines and proclaimed that cryptocurrency made everyone ‘incredibly rich’.”
They initially deposited around £ 35,000 from their savings and initially successfully earned £ 14,000.
“Once you win big, you think you can do it again,” they said.
But when Bitcoin fell massively in a crash in 2018, things started to go wrong and riskier deals were thrown on the table.
It was around this time that some offshore cryptocurrency exchanges began offering their users the option to trade Bitcoin derivatives – these are contracts that traders can enter into and that then allow them to bet on the future price of Bitcoin.
They come with minor restrictions, however, as even inexperienced traders could enter high-risk or rewarding contracts.
It wasn’t long before the unfortunate trader lost everything.
Just one bet on a short-term price move of Bitcoin wiped them out, and on top of that, another game of bad trades and inexperience dropped another £ 18,000.
They said, “Ultimately, the type of trade I was doing was just gambling. Exchanges are under no obligation to protect their customers. I finally stopped in late 2020 when they blocked my accounts.”
But by that point just over £ 123,800 had been lost in deposits without being able to be made up again.
With luck, investors may see their wealth grow by investing in cryptocurrency, but that’s never guaranteed.
Just like this dealer, many others lose their money.
Experts have looked at the security of Bitcoin in the past.
Money-saving expert Martin Lewis previously warned that it can be easily lost.
He said, “Like gold, it can be stolen, and cryptocurrency is a bit of an equivalent of gold in that it is a store of value for what people are investing. You have to be very careful.”
The currency is also unregulated, which means that if something goes wrong, you have no option to complain or be compensated for lost money.
Cryptocurrencies themselves are only regulated in the UK for combating money laundering and terrorist financing.
What is cryptocurrency?
CRYPTO CURRENCIES are a means of payment that can be exchanged for goods and services.
They work with a technology called blockchain.
Blockchain is a decentralized technology that is distributed across computers and manages and records transactions. Learn more about cryptocurrencies below.
British Bitcoin expert Layah Heilpern gives her followers on TikTok crypto advice
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