Be very careful and attentive when selling your bitcoins

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Quote from: KiaKia on February 18, 2024, 02:18:44 AM

Is that the right lesson to be learnt from this? To avoid using market price to sell large amount of bitcoin? I would rather advice people to go for the best exchange that has massive liquidity to sell their large BTC bag, for example Binance exchange.

People should avoid crypto exchanges that are struggling with volumes and liquidity, imagine BTC that have massive volume suffering on such exchange, that's shows that the exchange is a failed one.

Never ever use a unpopular exchange, there are many reasons why you shouldn't use them and this is just one of the reasons, I hope this person learn from this big mistakes, and I hope they recover from the losses, it must have been a very painful experience, to even raise a 0.5Bitcoin today seem impossible for many old and new investors.

Even if we want to sell bitcoins in smaller amounts, we should only use top exchanges like Binance or Coinbase. We should completely stay away from exchanges that have no reputation and low trading volume. I've never even heard of the exchange the OP mentioned so it's puzzling that so many people still use it to trade large amounts of bitcoin.

Bitcoin is becoming increasingly expensive and scarce, accumulating 0.1 btc is already a difficult problem for many people, let alone 0.5 btc. 0.5 btc is a pretty big number for most people these days.

CODE200

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The person that bought those bitcoins must be in heavens for getting such a price, it's definitely not a good idea to be inattentive when you're selling your bitcoins, I've seen too many stories of carelessness leading to this kind of thing and I don't like to be a part of those stories, that's why I almost always triple check what I'm doing or if I'm doing it correctly, that's how I've done ever since and so far with all the times that I've sold my bitcoin, I never had an issue or made a mistake, it pays to be careful and attentive when it comes to money related stuff.

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Quote from: davis196 on February 18, 2024, 02:18:37 AM

I haven't used a centralized cryptocurrency exchange since 2019(if I remember correctly). I'm selling my BTC outside the centralized exchanges and I don't have to deal with buy and sell orders. I never had any problems with selling my BTC so far. I guess that this Novadax exchange isn't very convenient and user friendly, so this Bitcoin investor had placed the wrong sell order. This is yet another Bitcoin horror story about losing your coins due to your own mistakes. Some people lose their private keys, other people place the wrong sell orders. Sh&t happens... Unfortunately we can't do anything about this problem.

Perhaps, choosing unknown and non reputable exchange is a big mistake, and much more if this is the first time we use the platform. The rush to click the sell/buy button without bothering to recheck it more often it went wrong. It happens to me, in fact, I was using known platform Binance but has no chance of getting it back once filled and sold. That could be a harsh thing happen in crypto space but somehow, this mistake and losing experience helps us to further know how tricky in here which we really need to be more careful and double check placed order before hitting the sell/buy option.

KiaKia

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Is that the right lesson to be learnt from this? To avoid using market price to sell large amount of bitcoin? I would rather advice people to go for the best exchange that has massive liquidity to sell their large BTC bag, for example Binance exchange.

People should avoid crypto exchanges that are struggling with volumes and liquidity, imagine BTC that have massive volume suffering on such exchange, that's shows that the exchange is a failed one.

Never ever use a unpopular exchange, there are many reasons why you shouldn't use them and this is just one of the reasons, I hope this person learn from this big mistakes, and I hope they recover from the losses, it must have been a very painful experience, to even raise a 0.5Bitcoin today seem impossible for many old and new investors.

davis196

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I haven't used a centralized cryptocurrency exchange since 2019(if I remember correctly). I'm selling my BTC outside the centralized exchanges and I don't have to deal with buy and sell orders. I never had any problems with selling my BTC so far. I guess that this Novadax exchange isn't very convenient and user friendly, so this Bitcoin investor had placed the wrong sell order. This is yet another Bitcoin horror story about losing your coins due to your own mistakes. Some people lose their private keys, other people place the wrong sell orders. Sh&t happens... Unfortunately we can't do anything about this problem.

Ale88

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Quote from: criptoevangelista on February 15, 2024, 05:48:34 AM

Hello everyone, I hope you are well.

I came to bring a case that happened in Brazil, an investor wanted to get rid of his bitcoins at the Novadax cryptocurrency brokerage (I've never used it, I can't recommend it, I'm just bringing the news). The fact is that he went to sell 1.7 BTC and generated a market sell order, with the lack of liquidity his orders were executed and consumed the entire order book taking the price to practically zero. He had bitcoins sold at 238 USD.

A huge loss just for not paying attention to selling at the price of the day, maybe he wanted to execute the orders quickly, or he didn't know what he was doing.

So be warned, if you are going to sell, fill out your order correctly at the price you want to sell, never use the "market" price to sell a large amount of bitcoins.

But what type of exchange are we talking about? In that tweet I see 1.7 BTC, that means less than $90k, how can such small amount of money consume the full order book? Even the worst shitcoin has bigger volumes than $90k, and in this case we're talking about BTC, the main crypto! I'm sorry for that guy but maybe he should have used some real exchange.

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This is why you should never use unpopular exchange platforms that don't have enough liquidity and you should double-check every parameter before hitting the sell or buy button when you are making a trade because a single decimal mistake can incur huge losses and losses in cryptocurrency are not recoverable, once it's done, it's gone forever and you are left with nothing but remorse which is useless because no matter how much you regret it, you are not getting your money back.

So, people need to use platforms that are popular worldwide, you don't have to use a local exchange to buy or sell cryptocurrencies if there are options available. If there are no international options, then you need to make sure you do everything right starting from the price to the amount you are trying to sell.

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Quote from: criptoevangelista on February 15, 2024, 05:48:34 AM

Hello everyone, I hope you are well.

I came to bring a case that happened in Brazil, an investor wanted to get rid of his bitcoins at the Novadax cryptocurrency brokerage (I've never used it, I can't recommend it, I'm just bringing the news). The fact is that he went to sell 1.7 BTC and generated a market sell order, with the lack of liquidity his orders were executed and consumed the entire order book taking the price to practically zero. He had bitcoins sold at 238 USD.

A huge loss just for not paying attention to selling at the price of the day, maybe he wanted to execute the orders quickly, or he didn't know what he was doing.

So be warned, if you are going to sell, fill out your order correctly at the price you want to sell, never use the "market" price to sell a large amount of bitcoins.
snip

Lol, that looks funny. It's completely the seller's mistake here because he didn't do his due diligence of checking the liquidity on the exchange.
What I am concerned about is, what kind of an exchange it is which doesn't even have a liquidity worth 2 BTC.
Why is the seller even using such an exchange at first place. Anyways, it depends on what portion of his coins were sold at what prices.
May be sold more than 1.5 BTC at current price and then the left over few satoshis at $238 price.
So we will have to see how much USD he got at the end of his market sell order to know how much loss he is in.
But yeah, that's a nice lesson to learn and stay away from market sell orders.

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Quote from: criptoevangelista on February 15, 2024, 05:48:34 AM

Hello everyone, I hope you are well.

I came to bring a case that happened in Brazil, an investor wanted to get rid of his bitcoins at the Novadax cryptocurrency brokerage (I've never used it, I can't recommend it, I'm just bringing the news). The fact is that he went to sell 1.7 BTC and generated a market sell order, with the lack of liquidity his orders were executed and consumed the entire order book taking the price to practically zero. He had bitcoins sold at 238 USD.

A huge loss just for not paying attention to selling at the price of the day, maybe he wanted to execute the orders quickly, or he didn't know what he was doing.

So be warned, if you are going to sell, fill out your order correctly at the price you want to sell, never use the "market" price to sell a large amount of bitcoins.

This is an example of investing in oneself but forgot to invest in his knowledge because I don't know how someone can be able to buy bitcoin worth 1.7BTC but don't know how to sell in a liquid exchange. Brazil is not among countries that has ban Bitcoin, not sure if they have ban some exchanges but I'm very sure Okex is one of the easiest centralized exchanges that works in most countries, even in places where Binance has been ban, they are allow to operate there, he should have just used that instead of one exchange that I'm just seeing for the first time.

OMG, even from the spread, it can be easily spotted and the total Bitcoin available for sell but he use market order and sold everything cheap. Now, the buyers will quickly withdraw their coins out of the exchange to avoid any foul play by the exchange because it's something they can do. How is he going to survive this sadness because I can't imagine selling $90k worth of bitcoin sold of less than $1k, damn.

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Quote from: livingfree on February 16, 2024, 03:03:30 AM

That's painful to read.

Someone who probably has accumulated that for so long and then ended up with a huge loss and is far from breaking even. This is a lesson for everyone if you're going to sell, choose a better exchange and always check their liquidity.

There are exchanges that you can automatically sell it to them and don't have to go to spot so you sell it on an instant but the spread and rate is quite lower than of the markets.

Surely that guy have learned his lesson but on an expensive way.

As long as it is not us that happened this to, we could see this as a lesson without hurting. I know that it must be horrible for him personally, but he also becomes a cautionary tale for all the people out there who wants to sell their coins. Thanks to his misery, there are now probably a lot more people who would not do such a thing. This type of mistakes makes other people do not make the same mistakes. And at times, some people who never hear this, ends up doing it again, and that makes even more people hear about it.

This has happened to so many people now, and all of them were sad, but all of them made less people make the same mistake. I do not enjoy people losing money like this, but at least I can check out the bright side of it.

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Quote from: criptoevangelista on February 16, 2024, 05:59:40 AM

Quote from: lovesmayfamilis on February 16, 2024, 05:23:39 AM

There are lots of questions and illogical actions. The OP is indeed right in saying that the person was in a hurry to get rid of his Bitcoins, and the quantity makes one wonder why there is such a rush. If he chose an unknown exchange, does that mean he could be hiding something? Owning a decent amount of Bitcoin but not knowing what to do with it correctly strongly suggests the idea that he got it by accident. Therefore, there is no awareness of where to trade correctly, but there is a goal of cashing out, nothing more.

Novadax does aggressive marketing on social media in Brazil, mainly on short video networks like tiktok, what I can imagine is that:

He is just a young random speculator with no knowledge who saw bitcoin appreciate a lot and tried to make some profit and made the worst possible choice of a cryptocurrency broker to trade, I can't imagine anything else.

Ultimately, he learned the hard way how one needs to be extremely cautious when making high-value transactions in the cryptocurrency market.

That emphasizes the negative results of getting into investing in Bitcoin without having an idea of how to manage it. Because it was not an excuse for being no-how but as an investor, it is our responsibility to know how this works as we care about our money. If your friend took this seriously and used known exchanges, we would never suffer such terrible losses but he chose to use that unknown exchange and rob him in front.

What happens to him will serve as a learning experience and I hope he will never be fooled by ads and social media influencers. He probably then thinks the importance of being cautious rather than being careless.

criptoevangelista

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Quote from: lovesmayfamilis on February 16, 2024, 05:23:39 AM

There are lots of questions and illogical actions. The OP is indeed right in saying that the person was in a hurry to get rid of his Bitcoins, and the quantity makes one wonder why there is such a rush. If he chose an unknown exchange, does that mean he could be hiding something? Owning a decent amount of Bitcoin but not knowing what to do with it correctly strongly suggests the idea that he got it by accident. Therefore, there is no awareness of where to trade correctly, but there is a goal of cashing out, nothing more.

Novadax does aggressive marketing on social media in Brazil, mainly on short video networks like tiktok, what I can imagine is that:

He is just a young random speculator with no knowledge who saw bitcoin appreciate a lot and tried to make some profit and made the worst possible choice of a cryptocurrency broker to trade, I can't imagine anything else.

Ultimately, he learned the hard way how one needs to be extremely cautious when making high-value transactions in the cryptocurrency market.

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There are lots of questions and illogical actions. The OP is indeed right in saying that the person was in a hurry to get rid of his Bitcoins, and the quantity makes one wonder why there is such a rush. If he chose an unknown exchange, does that mean he could be hiding something? Owning a decent amount of Bitcoin but not knowing what to do with it correctly strongly suggests the idea that he got it by accident. Therefore, there is no awareness of where to trade correctly, but there is a goal of cashing out, nothing more.

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Quote from: dzungmobile on February 15, 2024, 10:57:55 PM

Quote from: franky1 on February 15, 2024, 10:12:02 AM

what most likely happened is the user typed in for instance 52.000 instead of 52,000 (period instead of comma)
so it sold down all orders from $52,000 down until $238 where all 1.7btc was eaten

also by using a crap exchange that only had <2btc between 52,000 down to single figures meant there was no order wall to prevent such drop
EG better exchanges that have more the 2BTC wall at 51,800 means the order would have only fallen to 51,800

I think it is not because Bitcoin price is high enough to ignore decimal.

He can type 52000 and don't have to mind about dot or comma.

If Bitcoin price is like $5 or $52, your assumption can be true because with these small price, $0.1 can make sense and have effect on profit taking.

if you look at the OP image carefully.

where its showing just some of the prices of orders.. you will notice
$47.335,36 period comma

so a mis selection of putting a comma where a period should be and a period where a comma should be. would cause a order wanting to only sell at $52,000 become an order willing to sell all the way down to $52.00 should a lack of buy orders not exist to to fill all sats sold before hitting bottom

livingfree

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That's painful to read.

Someone who probably has accumulated that for so long and then ended up with a huge loss and is far from breaking even. This is a lesson for everyone if you're going to sell, choose a better exchange and always check their liquidity.

There are exchanges that you can automatically sell it to them and don't have to go to spot so you sell it on an instant but the spread and rate is quite lower than of the markets.

Surely that guy have learned his lesson but on an expensive way.

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Quote from: Natsuu on February 15, 2024, 06:26:17 AM

Quote from: NotATether on February 15, 2024, 06:21:11 AM

People should sell their coins at an exchange that has a large enough liquidity and not one that lets them punch in a custom buy and sell price, if all they care about is liquidating their bitcoins. Because these user-set prices are only useful to traders. Almost nobody is going to want to sell at those prices. (The same cannot be said for buying.)

Most exchanges do a good job at hiding this discrepancy, by having buy/sell prices but just not letting the users change them.

Right. If you just want to cash out your bitcoins without getting into the trading details, it's smart to pick an exchange with lots of people trading. Some exchanges let you set your own buy and sell prices but honestly not many folks are likely to go for those prices when selling. It's different when buying like more flexibility there. Many exchanges keep it simple by not letting users mess with the prices which helps avoid some headaches in the process

When you selling your bitcoin you must follow the present price from coinmarketcap and you must choice a reputable exchange where high liquidity is available. in this case i always use Binance or Kucoin if i sell a big amount of bitcoin or any other coins. many exchange only offer you many potential offer like kyc free or something else but you will not able to exchange a big amount of crypto. so everyone should be careful on this

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So, the lesson to learn here, will be not to sell coins at these small exchanges. Also, why did he sell all his coins in one big transaction?

He should have known that the exchange is small and that he has to sell in smaller chunks to accommodate for the liquidity.

Unfortunately, he learned the hard way and other people learn from his mistakes.

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Quote from: criptoevangelista on February 15, 2024, 05:48:34 AM

A huge loss just for not paying attention to selling at the price of the day, maybe he wanted to execute the orders quickly, or he didn't know what he was doing.

That's why we are required to be more careful in doing everything, including when ordering any price. Mistakes made are basically caused by carelessness or people can also lose concentration when doing them. But if this continues to happen and someone doesn't try to be more careful then it could end in big losses and this wouldn't be fun for anyone to experience.

Quote from: criptoevangelista on February 15, 2024, 05:48:34 AM

So be warned, if you are going to sell, fill out your order correctly at the price you want to sell, never use the "market" price to sell a large amount of bitcoins.

If I don't misunderstand what you mean and I think it was a mistake in entering the numbers when pressing the selling price on the exchange. I have also experienced the situation of entering the wrong selling price and unfortunately the price I ordered was far below the standard price that day.

adaseb

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Yeah I am not surprised this happened at all. There are many coins which have illiquid order books and people market sell there anyways.

I am assuming this happens because the seller is inexperienced and just market buys and sells everything due to being impatient. When I started trading I was like this also. Had no idea what limit orders were or they just seemed very confusing, especially with stocks.

Basically it’s not a good exchange at all when such a small order can cause this much slippage.

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Quote from: 0t3p0t on February 15, 2024, 11:19:41 PM

If in doubt don't. That is what I kept in mind when selling Bitcoins and I also choose the right exchange to sell my coins and that's no other than reputable local or international exchange to ensure that my sell order won't be compromised with the flow of liquidity. Lucky for us we have this local e-wallets that supports crypto we can easily convert Bitcoins to our local currency.

Like you, I don't buy and sell bitcoins on exchanges with low liquidity, especially the exchanges I sell bitcoins on have P2P trading systems in my local currency, so I exchange bitcoins directly in my local currency. However, in the case of Bitcoin trading, you should definitely select an exchange with KYC and more liquidity, and you should make sure that the order you place has enough liquidity in the Bitcoin exchange.

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