The last year has been very entertaining in the world of crypto. Governments around the world adopted cryptocurrency, various nations approved of its legal status, Dogecoin miraculously gained popularity, and several coins, like Cardano, are said to have the potential to reach an all-time high this year. If you’re like most of the people in the world, you’ve probably invested in at least one coin. Hopefully, you’ve done your research and made some sort of profit in the world of crypto.
Unfortunately, though, things don’t always work out for the best. Some end up losing way more money than we intended – sometimes, all of it. We all love a good horror story, so read on to hear the stories of people who shared their horror stories from cryptocurrency tanking.
23) Black Friday Impacts Crypto Market
“I lost $5000 in total! Yes down the sewer, never to be seen again by me. Majority of this was in NFT’s and Ethereum’s Gas Fees.” – via Reddit
Most of us know the feeling of losing twenty bucks. It can ruin your day. Imagine losing thousands of dollars like this Reddit user did. That’s enough to ruin an entire year. Unfortunately for this Reddit user, Black Friday impacted the crypto market, and they ended up losing $5,000.
This Reddit user was feeling the aftereffects from cryptocurrency tanking tenfold. Not only did they lose a bunch of money, but their landlord raised their rent by 40 percent and they went through a divorce, all the while living through an entire pandemic.
“My apartment building was recently sold and I was a tenant at will. The new landlord came in and raised my rent by 40%. it would be impossible for me to pay. Especially now that unemployment is over. Our exit date is October 31. I’m lost. The last four years has been so hard. I clawed my way back after the divorce just to have the pandemic ruin it all.” – via everythingisbland
This Reddit user couldn’t catch a break. They were initially fooled when they thought their savings was doubling, only to watch it take a complete 180 and plummet. Not only did they lose their savings, but they had to take out two loans, both of which they couldn’t make back with crypto, because they didn’t have any money to put back into crypto. This is quite the horror story from crypto tanking.
“In late November 2017, right before the peak of the 2017-2018 bull run, I put my entire savings account into cryptocurrency. I watched as it almost doubled at first, but then… the crash hit…. I actually took out two loans, $20,000 each time, which I used to buy more on the way down throughout 2018, but it all kept dropping. Eventually my portfolio’s value was around 5% of the entire money I’d put into it, including loan money… The worst part? The crypto that I took out those loans to buy ended up going 100x from the bottom in the more recent crypto bull run this year.” via flameylamey
Most investors have made crypto mistakes here and there. This Reddit user shared their experience with crypto fees, which we know can be unbelievably high. It almost makes buying crypto not worth the risk.
“Worst mistake I ever made was making a blockchain account as my first crypto account. the fees they charge to transfer are phenomenal and is probably where i lost the most money was when I got the f*** off their platform.” – via putridfigure
People can get pretty greedy when it comes to crypto. This Reddit user shares their experience discovering Bitmex, depositing money, making a new account with a larger amount, and then losing everything from cryptocurrency tanking.
“Within a month, my discovery of Bitmex managed to ruin my life. I started off with a small deposit of 0.01 BTC, and I managed to flip that in to 0.2 BTC within a week. I was euphoric. Then as quickly as I made it, I lost it all to one swift move by the market. So I made a new account thinking that I knew what I was doing this time around and deposited a slightly larger amount. Liquidated. I deposited again. Liquidated. It got to the point where my bank account had no money left to fund my Bitmex account and that’s where I made my biggest mistake…. I have now no more funds left to deposit and have lost all my crypto.” – via nomoresaddays
“I started investing in crypto in May of 2021, just before the mega-crash. I was able to recoup my losses in September of 2021 and went on to make (at the peak) close to $100,000 from my $40,000 investment. I became very arrogant, feeling on top of the world, looking down on folks with regular jobs while I was making in some days close to what most people make in a month or two, without doing any work. As of January 22nd, 2022, I have lost all of my profits plus $15,000 of my original investment, as I did not sell despite the markets tanking week after week, with a huge drop yesterday on January 21st.” – via Legal-Recognition555
We all know that easy money usually comes with a cost. This Reddit user learned that the hard way. At first, they were flying high, making tons of money without having to work. Unfortunately, they ended up losing all of their profits from cryptocurrency tanking. Back to work!
We’ve probably all experienced the fear that accompanies clicking a sketchy link from an email or website. Usually, we get away pretty easily and nothing ends up happening. Unfortunately, for this Reddit user, they believe they lost all their crypto money because they clicked on a malicious link.
“I have a hardware wallet (Ledger Nano S) since 2017 and 4 different Metamask “hot” wallets. The hardware wallet consisted of 80% of my portfolio. Yesterday, I used my Metamask to access all my wallets for a balance status check before the new year. Everything seemed normal. After checking again late last night and after seeing one of my accounts showing as zero, I noticed every wallet was wiped. My only possible conclusion is that I clicked a malicious link while surfing the internet.” – via PowerOfTheGods
16) Crypto Tanked And I Lost My Respect Towards Money
“This year my investment tripled his value and I felt like an investment God, smarter that all the people around me, and started to buy more crypto (BTC and ETH) as the bull market lead my greed. Tried some day trading with terrible results, losing more money than I’m willing to admit, but even with that I had twice the € that I have when I started, and that’s when it hit me…” – via GraffinTested
Another greedy Reddit user who fell into the crypto trap. When you’re making tons of money, it’s easy to believe it’ll last forever, which usually is not the case.
This Reddit user couldn’t catch a break. Not only did they have to deal with serious health issues, but they lost a ton of money with crypto because they had to pay for their medical treatment. Hopefully, their health is back on track. It’s certainly worth losing money in crypto when you’re investing in your health, though.
“I bought 200btc 40 million ada and 100 million mana about 8 years ago and then I was diagnosed with multiple sclerosis and a heart issue at the same time. I had to leave my job in the film industry and go onto disability. I then had to move home with my parents and was forced to get rid of all my crypto to get heart surgery. While on disability they monitor my bank accounts and I watched as every coin went on and made what you see now.” – via MainPhysics4759
“Unfortunately, it was already on its way down – I could wait until it recovered back, to get out without loss. But I knew deep down I would be waiting forever. So I sold, at a loss of around 10%. Needless to say, I was lucky, it dropped and never recovered back. It’s now worth less than half of what it was just a few months ago. Had I not sold, I would not have been able to swing-trade and not only gain back that loss, but increase my worth by several hundreds.” – via cutebunnybunnies
This Reddit user had enough clarity to sell their crypto when they did, otherwise, they would’ve lost a lot more money. This is one of the more fortunate horror stories on this list from cryptocurrency tanking.
“I started with 0,1 BTC which I traded into ETH when it looked very well. In futures then I made about 4ETHs and continued into 6, then 8 and while the bullrun was still in game, I made 14 full ETHs!!! I pushed limits again and then “correction” came, I lost 2 ETH and gave my 12 ETHs away to cold storage. But when it looked like a dip is over, I withdrawed 12ETH into Binance again and made another long position… lost 2 ETH again… then we had some elevation, but after some while I ended up with just “small” profit.” – via No_Insurance6064
Another horror story, not only from crypto tanking but from greed. It’s easy to fall into the crypto trap quite easily, as we can all see. This Reddit user honestly shares their experience about putting more money in, watching it go up, withdrawing, and then losing most of their profit. At least they made something!
“After the Binance ban was announced in my country, I liquidated my holdings at a loss on 30 September because I thought the prices will continue to dip more. When I sold, BTC was hovering around 40-41k; it’s the day with the lowest candle. The next day, there’s a long green candle and from 1 October onwards, crypto prices kept rising. I feel a lot of frustration and anger at myself to have sold right just 1 day before the mad rise all the way to the 60k range.” – via sherlishhhhh
Hindsight is 20/20 as this Reddit user learned. They sold their crypto the day before Bitcoin hit the 60k range. We’re all probably thinking the same thing – ouch!
We’ve heard horror stories from people losing thousands of dollars from cryptocurrency tanking, but it’s usually not everything in their bank account. This Reddit user shares their experience losing everything in only 24 hours. It really goes to show you how much can change, in such a short amount of time.
“I never got along here, sadly pretty bad stuff happened to me lately because I was stupid, I dated a girl, and she well, took a lot of money from me and when I noticed it was too late, I gave her a high amount of money, and another person promised me a super good business related towards what I do, promoting me, letting me work with big companies, confections, etc… and he also took a big amount for this services and didn’t provide anything, just the minimum (again it was my fault for trusting someone else).” – via Decaff_Me_Please
“I lost 250k gains and now at losses. 🙁 I joined crypto around March and I was proud that I bought coins that gave me 70% gains because of HODL. But I was too greedy that I didn’t take profit because I didn’t want to let go of the coins I bought for cheap. Now those coins are back to my entry price and even lower. All my gains gone.” – via stolenparadiseee
Losing hundreds of thousands of dollars is not something to take lightly. Unfortunately, for this greedy Reddit user, they lost all of their gains from cryptocurrency tanking. It really goes to show you that you need to be careful with your money. Crypto isn’t a game!
“I made cryptocurrency investments and after the crash I panicked and sold, losing 5k. After that I felt an overwhelming grief thought I could make it back, bought back in and ended up losing it even more. By the end, I now only have 8k from what ended up being 20k.” – via MMACheerpuppy
This Reddit misplayed the crypto trade and lost $12,000. It could be worse, and we could try to look at it with a different perspective. At least they still had $8,000!
It’s pretty frightening how accessible cryptocurrency is, especially when it comes to people under the age of twenty-five. Unfortunately, for this Reddit user, they lost all of their money and ended up maxing out their credit cards. This is a loss from cryptocurrency tanking that’ll take a long time to fix.
“I’m 18, I’m in college, and I live with my parents. I managed to buy into BTC and ETH somewhat early in this bull run at $9,000 and $600, respectively. I held on to them and they, along with a few other alts, brought me life-changing money. My $3,000 investment turned into $22,000. Then, I discovered leveraged futures… I ended up depositing all of my crypto funds, depositing all of my cash, liquidating my $7,000 stock portfolio and depositing it, and maxing out my credit cards.” – via ElbowMagnet
“I purchased 151 KCS for at price around 4.8$ and sell it at a price of 6.24$. Instead of selling it at price around 19$ difference, at selling it at 6.24$ i “lost” profit of 2.000$ But ok, I thought I learned some lesson but didn’t. I wanted to try some day trading and then it all began… So 5 min after I made an order I was left with 4$ in my balance.“ – via kunz_noob
Crypto isn’t something to mess around with. Unfortunately, with its accessibility, anyone can put money into crypto. Without any true knowledge about crypto, this usually ends in losses for the misinformed as this Reddit user experienced.
“In December of 2017, I bought five and a half ether at $900 each, investing $5,000… In total, I put in $8,000 of my own money. By year’s end, the price plummeted to $115, and my investment—worth nearly $10,000 at its peak—was suddenly worth a miserable $1,050.” – via Toronto Life
At least this Reddit user wasn’t left with only a couple hundred dollars as the previous person shared. Unfortunately, they did lose a lot of money in the long run.
“My investments were now getting bigger and bigger and the standard investment was from $1-5k. Then my cold streak came. I literally couldn’t win. Every single investment was a loss and I started digging into my savings and withdrawn funds until I lost it all. Now I sit with $1k to my name, which is a months rent, which is due next week.” – via iam_in_here
It seems that many people mistakenly dig into their savings in order to invest money into crypto. Once they lose that money, they dig and dig until there’s nothing left to put back into the crypto market.
3) Made Mistake & Lost Life Savings In Crypto Crash
“I took all my earnings from going up 100x with XRP, cashed out half and reallocated everything else into all sorts of alts, and took a spare few thousand and dumped into random sh**coins, and low cap alts. I went overboard. Literally dozens of wallets and dozens of exchanges. Things went stale a long time and the only thing I kept track of was the bulk of my value.” – via WallStreetBets14
Another rookie mistake of investing your money into random coins. Sometimes, we’re led to believe that small coins have the potential to grow exponentially. While this is usually the case once and a while, it’s usually not, and we end up losing a ton of money, like this Reddit user experienced.
“The Coinstar fee to convert coins to cash is $0.10 plus 12.5%. Ouch. BUT, I want to see what the process is so let’s go. Dump the coins and get a receipt. I forgot to write it down, but I had just over $100 in coins… I ended up holding $89 and change. Back to the kiosk I go… The quoted price was $60,196.56. This was 4/16/21 at 2:16pm. Check the charts, that’s somewhere around $4000 more than the actual price at that time… The kiosk gives a receipt with a redemption code and a PIN…. Add the network fees to that, subtract the inflated spot price, account for the dip that had started earlier, and we’re down to about $62.” – via CosmoBarber
This is definitely a huge loss! Exchanging your coins for cryptocurrency, only to find out you lost a ton of money. At first, it seems like a game, until you’re down to nearly nothing. Unfortunately for this Reddit user, and all of the other people on this list, they experienced a crypto horror story and faced major losses.