An unfortunate Reddit user lost his life savings after investing in Bitcoin – and didn’t dare tell his wife.
With extensive work on cryptocurrency, user Prudent_Plum_7644 has posted an account that is painful to try and a warning to others.
In his book on the Bitcoin subreddit, he said, “Men have been so wrong, my life savings are gone forever, I learned a devastatingly hard lesson.”
He details how he and his wife collected 1.7 BTC which, at current rates, is about £58,400.
He said it took them ten years to hoard money, save as much as possible, and take on odd jobs where possible.
Then the trading started.
He wrote: “I started future trades and managed to convert 1.7 BTC to 2.1 BTC, which is classic luck for beginners.”
Unfortunately, he put all the money into a type of trade called a leveraged futures contract – betting that the value of bitcoin will continue to rise.
When he fell, he says he lost everything.
He wrote, “Of course the order was not executed, BTC went from touching $50K to $47K and our lifetime savings were wiped out.
“I still haven’t said anything to my wife, she doesn’t know it and it’s killing me from the inside. I don’t know what to say to her, I’m simply broken. I can barely see myself in the mirror.”
Ending up pleading for others not to fall into the same trap, the Redditor wrote: “Please follow my advice, don’t trade men, and don’t fall into these marketing traps like I did.”
He posted screenshots of his future trade slowly being liquidated as bitcoin depreciated instead of rising.
Other Redditors pityed, but reinforced the idea that putting one’s entire money into one deal isn’t a smart move.
One commented, “This **line is dangerous and the average investor should not touch it with a 10m pole.”
Another said, “Sorry to hear about this man. Be honest with your wife. Tell her your heart and ask her forgiveness. Then make a plan and rebuild your group.”
“And never try to surprise your wife by taking a step with all your life savings combined again. She has a right to know and not be surprised, whether it’s good or bad.”
Galina Stavskaya, Head of Investments at Claro Money, explained: “Future trading is when you agree to buy or sell an investment product at a certain date in the future at a certain price, while setting the date and price of the future transaction today.
“It’s like going into a shop today and saying ‘I’m going to buy this car in two months at £5,000’ and sign a contract to do it.
“If in two months the price of the car is above 5000 – you made money, and if the price is below 5000 – you lose. Trade does not involve exchanging money today – only signing the contract to carry out this pre-planned transaction in the future.”