Be very careful and attentive when selling your bitcoins - page 4.

MusaMohamed

sr. member

Activity: 966

Merit: 306

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

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.

It is possibly because he chose inappropriate order to use.

With this case, I believe the seller used Market order, not Limit order. If he uses the Limit order, it will not be filled at $238 for one Bitcoin.

Market Order: Definition, Example, Vs. Limit Order.

If seller used the Limit order but his bitcoins were sold at very low prices like this, it's a bug on the exchange and can be enough for a lawsuit against that exchange.

Inwestour

hero member

Activity: 980

Merit: 947

Firstly, you should use the services only on those exchanges that have fairly good liquidity, and secondly, you should never carry out such a large volume in one transaction, it is better to break it into smaller parts, for various reasons.

He may simply face blocking of his account, and the entire amount will become inaccessible to him, then clarification may take a long time. And of course, in this case, this is a human mistake, he should not blame the exchange for his mistake, he had access to all the information about the volumes and what he did not carry out before the transaction was only his mistake.

xSkylarx

hero member

Activity: 2366

Merit: 594

This is really sad and you'll be pissed because it is your own fault for putting the numbers, probably he hastily sold it which is why he put the wrong number. I'm not sure if he can still get back his money, which he probably cannot. This is really a problem for those people who are not careful, because this is not like a bank where we can just raise this concern. This is my first time hearing this, as usually the error is sending it to the wrong address.

Zlantann

legendary

Activity: 1064

Merit: 1101

Using popular exchanges usually has high liquidity that's the reason why people are attracted to them. I don't know why the Bitcoiner decided to choose Novadax when there are many other high-profile exchanges. He would have used a small sum to test the exchange If he was not conversant with the operations. Losing such kind of funds during this period can make someone depressed for a long time. People need to know that selling cryptos is a very sensitive transaction because it might be irreversible. Thus it is always important to read and have a proper understanding before engaging in any transaction. If you can't pay attention to details, you might face situations such as the one OP reported.

kryptqnick

legendary

Activity: 3248

Merit: 1402

Join the world-leading crypto sportsbook NOW!

This is a very unfortunate situation. Of course, before selling BTC, one should do some research about the most reputable exchanges, and familiarize oneself with the interface of a chosen exchange before placing a big order.
In my experience with exchanges, I set the price of the sell order myself, so if it was near the market price, the order was filled very quickly, and if it was way off, it just remained an open order, but there was no way of my coins being sold for a price that I didn't set. It's terrible that it can actually happen on some exchanges, as the tweet shows.

HelliumZ

sr. member

Activity: 532

Merit: 268

Of course I use verified KYC exchanges with huge liquidity to sell bitcoins. However, I never use non-KYC exchanges. There are several precautions to be followed especially when doing Bitcoin exchanges. Of course, KYC verification must be used on such exchanges, exchanges with high liquidity should be used, and transactions with any third party should be avoided. There are several other things that must be known before trading.

criptoevangelista

sr. member

Activity: 448

Merit: 691

In ₿ we trust

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.

A recent problem we have here in Brazil is that President Lula's government since January 1, 2024 has decided to tax all cryptocurrency transactions by 15% when using an international broker without headquarters in Brazil and exempting transactions made in brokers that are based in national territory.

This forces people to use these brokers with little liquidity.

So, if a person is not careful, they can simply lose money in what should be a simple sale of bitcoins.

Natsuu

full member

Activity: 1148

Merit: 158

★Bitvest.io★ Play Plinko or Invest!

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

hitsnorth

jr. member

Activity: 145

Merit: 1

Damn, that's hard losing that much money just like that. I never sold BTC, but I was always careful selling altcoins, I used non-KYC exchanges and never had any issues.

NotATether

legendary

Activity: 1568

Merit: 6660

bitcoincleanup.com / bitmixlist.org

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.

DapanasFruit

member

Activity: 1218

Merit: 49

Binance #Smart World Global Token

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.

This is a sad story but one has Bitcoin and is really involved with cryptocurrency he should have learned the ins and outs of converting BTC to cash or maybe USDT in a centralized exchange. Am sure this BTC seller will never forget for the rest of his life what happened to his Bitcoin and getting almost zero in the process. One of the many things I learned with crypto is we must be allotting some time to educate ourselves even the very basic one. I know that this is actually a big hindrance for many hence crypto is not for all though it is very much open to all. So sad, indeed!

criptoevangelista

sr. member

Activity: 448

Merit: 691

In ₿ we trust

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.

Topic: Be very careful and attentive when selling your bitcoins - page 4. (Read 543 times)