Chapter 1: The Initial Investment

In early 2022, I embarked on my first foray into cryptocurrency investments. With no prior experience and only a limited understanding of how the crypto market operates, I was setting myself up for failure. The inherent volatility of cryptocurrencies, which lack a solid financial foundation and rely solely on supply and demand dynamics, should have been a red flag for any cautious investor. Yet, the decentralized nature of cryptocurrencies, validated by miners rather than a central authority, and their promise of security and anonymity seemed appealing—though I had no need for confidentiality.

When investing, one naturally anticipates a return. Cryptocurrencies had seen various fluctuations, but a recent trend of relative stability led me to believe it was an opportune moment to invest. I aimed not just to earn money in the medium to long term but also to expand my knowledge about cryptocurrency and potentially engage in day trading to boost my passive income. Thus, I approached my investments both as a trader and an investor, despite my lack of experience in either role.

Chapter 2: The Cost of Experimentation

I diversified my investments across several cryptocurrencies, primarily focusing on the more established ones, Bitcoin and Ethereum. Some of the coins I chose were based purely on personal preference or amusing names. Below is a summary of the cryptocurrencies I purchased and their respective losses:

1. Bitcoin -55.41%
2. Ether -64.04%
3. Litecoin -50.49%
4. Polkadot +1.59% (acquired after the second crash)
5. Compound -64.55%
6. DogeCoin -52.31%
7. The Graph -77.30%
8. Loopring -68.22%
9. EOS -67.49%
10. Cardano -58.23%
11. Internet Computer -73.84%

The situation worsened at the end of February when geopolitical tensions from Russia's invasion of Ukraine triggered a downturn in global markets, impacting both cryptocurrencies and stock exchanges worldwide. This was compounded by the collapse of the Terra Luna stablecoin in May, which disrupted the market further. Even when prices did not plummet due to unexpected crashes, a general downward trend persisted.

The global economy is currently experiencing sluggish growth amid rising inflation, influenced by the pandemic and the ongoing conflict in Ukraine, which has led to a food and energy crisis. These factors have resulted in a more cautious investor sentiment, and I found myself caught in the bubble that has now burst, primarily due to my naivety and inexperience.

Chapter 3: Facing Reality

Now, I find myself at a crossroads with two options: sell my remaining cryptocurrency holdings to prevent further losses or hold out in hopes of a market recovery. I have chosen the latter, resigning myself to the notion that my investments are likely a lost cause—merely "learning pains." I am curious to see how the market unfolds over the coming months or years, though I harbor no significant expectations for recovery.

Thank you for taking the time to read my story! If you found this narrative insightful, please subscribe for updates on my future posts.

If you enjoyed this article, consider following me for more updates.

If you're interested in further reading on related topics, you might want to check out my book, “Data-Driven Decisions: A Practical Introduction to Machine Learning,” which is an affordable resource to jumpstart your understanding of machine learning.

Otherwise, thank you for your time!

The first video titled "I Lost my Life Savings in the Crypto Crash..." elaborates on the emotional and financial impacts of investing in cryptocurrency during unstable market conditions.

The second video, "I LOST ALL MY MONEY IN CRYPTO...", shares a personal account of the challenges faced by crypto investors and their journey through loss.