‘I got greedy and lost €20,000 in crypto. What now?’

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Dear Luca,

What I’m going to write is hard and makes me feel ashamed, but I need to get it out of my head. 

I’ve been following crypto for years and first invested in Bitcoin in 2021. I gradually started to dabble in altcoins [cryptocurrencies other than Bitcoin].

I made some gains, but also made some small losses. But as time passed, I got better at it, and earlier this year when Trump was elected, I managed to sell at great gains.

The market eventually went downhill due to tariffs. This was something which I anticipated, and I bought back into the market when prices were very low.

Recently, prices went back up, and I literally turned €5,000 into €30,000 in just two weeks.

That is the moment when I stopped thinking clearly and started thinking I could become one of those young crypto investors who became wildly rich in a matter of weeks.

I noticed a memecoin (a joke-inspired cryptocurrency driven by hype) which I thought had great potential and spent my entire €30,000 on it, thinking I could quickly turn it into €100,000 and more. 

The coin became worthless in a matter of hours. I managed to sell out at a  €20,000 loss. In one decision, I eradicated years of gain.

Now my instinct tells me, get into the game again to make them back. But at the same time losing €20,000 in a few hours has taken its toll on me.

Reckless Trader

Luca responds:

I can understand how distraught you must be feeling right now. A few years ago, I studied day-trading penny stocks, and despite knowing how to trade, my emotions meant I never realised any gains.

You’ve gone through quite an emotional rollercoaster. If there is one thing I learnt from my own personal experience, it is to take a deep breath and literally stay away from your desk for a few days.

Emotionally, FOMO (fear of missing out), alongside other factors (like revenge trading – which might be a scenario that you could fall into) can literally destroy the little you have left. It’s the mindset that says, “I’ll make it all back if I just take one more risk.” That trap has taken down even the most seasoned traders.

Furthermore, while I see value in Bitcoin and certain cryptocurrencies with decent projects, putting significant money into memecoins is not a good idea. They’re often based on hype, momentum, and social media frenzy rather than real utility. These tokens are highly volatile, prone to manipulation, and frequently used in pump-and-dump schemes designed to enrich a few at the expense of many.

Remember, the crypto market remains loosely regulated in many parts of the world. Unlike the world of traditional finance (investing in ETFs, stocks, bonds etc), crypto is still a space where sharks often thrive, and where stories of overnight wealth usually mask a thousand stories like yours.

The fact that you currently paused is the right tactic – reflecting is much better than reacting! This is your moment to rebuild, and if you’d really want to enter the crypto game again, do it conservatively, to avoid the emotion of throwing it all in one memecoin again. Because yes, FOMO is so powerful that it will affect you again, especially if the gains start appearing again.

I hope this helps.

Luca is the founder of the Money Coaching Hub. Email him your financial questions or your response to today’s question for a chance to be featured in a future column.

Disclaimer: This column is intended to provide general information on various topics related to personal finance. The information provided is for educational purposes only and should not be construed as personalised financial advice for your specific situation. Financial decisions are highly individual and can vary greatly based on your unique circumstances, goals, and risk tolerance. The author of this column is not authorised to provide financial advice. Before making any financial decisions, it is recommended to seek professional financial advice from an authorised financial advisor.