Back in October a friend of our's named JP got into the crypto world. He got really interested in crypto and started investing. His first investment was something around 30 euros into particle. We were a bit surprise and asked him why he invested in partcl, normally people start with the mainstream coins and the well known (bitcoin, ethereum, litecoin ect.). He said, he liked the name and was skeptical about bitcoin and said that he was afraid of bitcoin, and that the transaction cost was high (fair point). But why partcl?
Well he simply replied
JP: it has a catchy name, it was a cheap coin (9$ per coin) and they have a lot of followers on twitter.
Well clearly our friend didn't know anything about crypto, so we gave him a bit of advice on which key-points to look at when buying a coin. Gave him advice on which coins he could invest. He then understood and started investing in all types of coins. One of the coins we advised him to look at were reddcoin and ark (we told him about other coins as well, but we will use these two as the example). He invested in each coin around 400$, reddcoin was around 0.00087$ and ark 2.5$ ish. Around December Macafee said that reddcoin had potential, which gave a boost to the reddcoin price.
So what happen to our friend JP?
Well he though of a strategy, he thought that if he sold all of his redd coins when he saw a small dip in price he could buy more in a week. He predicted that the price would drop back to 0.00087$ in one week and he would buy more. This is an ideal situation and I think every investor would want this to work, if you have common sense you know in real life things are not easy and this shit never almost never happens in one week (a pump and dump is a exception). So, JP sold all of his reddcoins at the price of 0.00410$. Three days later redd coin sky rocket to 0.00800 and JP got frustrated and thought of a new strategy he said that the reddcoin would continue to go up so he bought 500$ at 0.00800. Then reddcoin rose up to 0.01200$ and JP saw that the price went down the next day to 0.009800 so he sold once again all of his coins.
Caribbean vibes he's making profit so what's the problem?
The story doesn't' end there. Unfortunately, JP didn't know what the future had in store for him. In late December he bought reddcoins again 700$ at the price of 0.01500$. Then when the price sore to 0.01900$, JP had a big smile on his face and he had dream like all of us his dream was to get a new Lambo. When the price dropped to 0.01700$ JP once again sold all of his coins. We told him that good things comes to those who hold, but JP didn't want to listen he became greedy and wanted to get rich quicky.
So what happen?
Well JP saw the price of redd coin go to 0.01400$ and he bought this time with all his profits including adding more money in. However, this time the price didn't sore it dropped in two days quickly to 0.01000$, he sold all of his coins. However JP was filled with greed and predicted that the market would go up in two weeks. Then after three days he bought again reddcoins at the price of 0.009500$ We laught and speculated what was coming and told him that a dip would come in two weeks and that he will not be able to make profits for the next months. JP didn't hear, and after two weeks the price of reddcoin went to 0.00300 ish and JP sold again all of his coins, this time he was left without profits and he lost more than 50% of his initial investment.
Moral of the story don't be a JP!!! JUST hodl
