- A crypto trader recently suffered repeated losses due to the FOMO.
- The trader bought ETH twice after the rally had begun, and sold out of fear during a pullback.
- Lookonchain advised users to be more patient when trading cryptocurrencies.
Lookonchain, a Web3 data analysis tool provider, tweeted about a crypto trader that made repeated losses due to the Fear Of Missing Out (FOMO). The platform posted two concurrent trades by the same trader who lost over $2 million USDC in panic trades.
The Web3 analytics platform, through its Twitter handle, advised users to avoid ETH after prices have risen over a period. The platform advises users against panic selling in situations where prices drop.
In Lookonchain’s example, an unidentified crypto trader bought 7,135 ETH with $12.25 million USDC on September 9, 2022. At the time of the purchase, the price of ETH had gained 10% from its local low. ETH price pulled back after the purchase, and seven days later, on September 16, 2022, the trader liquidated the position and got back $10.51 million USDC, losing $1.74M USDC in the trade.
After five months, on February 16, 2020, the same trader bought 4,489 ETH for $7.65 million USDC. Again, the ETH price had already gained 10% from the local low before the trader took a buying position. The price dropped almost immediately, and after a few days, the trader sold off all purchased ETH for $7.33 million USDC. His loss this time was $324,000 USDC.
Lookonchain included the wallet address involved in the trades explained. According to the platform, the trader lost over $2 million USDC in those two trades within six months due to blind buying and panic selling, otherwise referred to as FOMO and FUD (Fear Uncertainty and Doubt).
The platform advised its users to be more patient when trading cryptocurrencies. It noted that it doesn’t matter if a trader misses a buying opportunity. For traders that find themselves in such situations, Lookonchain advised them to sit back and wait for the next opportunity. “Not making money is better than losing money,” it said.
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