Be very careful and attentive when selling your bitcoins

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Quote from: KiaKia on February 18, 2024, 03:18:44 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.

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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, 03:18:37 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.

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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.

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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, 06:48:34 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, 06:48:34 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, 04:03:30 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, 06:59:40 AM

Quote from: lovesmayfamilis on February 16, 2024, 06:23:39 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.

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Quote from: lovesmayfamilis on February 16, 2024, 06:23:39 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, 11:57:55 PM

Quote from: franky1 on February 15, 2024, 11:12:02 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

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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, 07:26:17 AM

Quote from: NotATether on February 15, 2024, 07:21:11 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, 06:48:34 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, 06:48:34 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.

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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 16, 2024, 12:19:41 AM

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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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.

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Quote from: franky1 on February 15, 2024, 11:12:02 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.

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This is an extremely careless mistake. I wonder how somebody can commit such negligence.

For one, it's a big question why he chose that unknown exchange. Second, upon seeing that the exchange lacks liquidity, why did he push through? Moving to a reputable exchange was a little effort in relation to the amount of Bitcoin he wanted to sell. Third, even if he wanted to stick to the exchange, why didn't he set his own preferred price in the sell order? Didn't he realize that the selling price was ridiculously low? Finally, he should have double-checked everything. And if I'm not mistaken, exchanges would ask you to confirm your price before your order is listed. The man seems extremely careless.

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This is why you should always check the order books, see whether the exchange is liquid enough to take on your order, and double check everything before commencing the trade. I'm not sure whether Binance is available on that part of the world, but if it is, then he will not have any problems regarding liquidity. Or he can even try and do a P2P to make sure that he's paid a somewhat fair market price. Ultimately, the neglect is on the end of the seller not checking things before executing the trade. An unfortunately expensive 'charge to experience' moment for this man right here.

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With Bitcoin you always have to tripple-check every single step that you make, because there's lots of ways you can make a mistake that will cost you your investment.

If I were to sell 1.7 BTC, I would split it into like 4-5 batches and sell them over a few days or even weeks. The absolute worst case scenario if something goes wrong is losing 1/5 of the stash instead of all of it.

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

A huge mistake, but one that is on him completely, exchanges do their best to increase the volume going through them as this means more profits, but with the high level of competition it is normal there are many exchanges that have a very low volume, so he should have checked beforehand if the exchange could handle such an operation, and once he realized this was not the case he could have sold his coins somewhere else, I just hope he has many more coins, otherwise this is going to be a loss that is going to haunt him all his life.

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Quote from: GreatArkansas on February 15, 2024, 06:29:18 PM

Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

I'm curious how he got that amount of Bitcoin at first, it's a huge amount of Bitcoin in terms of value.
For me, if you have that amount of Bitcoin for sure you already know how the market works, especially exchanges.

I am not sure if the exchange is accountable for this.

but if the trader sell it a market price, then it is the trader himself who is at fault here. lucky if you are trading in binance because that amount of btc is actually small and he can get a very good deal for the sell price. because they have very high liquidity, the usual gap of price is like few bucks only and the trading is very fast. this is why it is always advisable to trade in an exchange with good trading volume. because if you happen to trade in a small exchange, the movement is slow and the price level is usually lower than the leading crypto exchanges.

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

I'm curious how he got that amount of Bitcoin at first, it's a huge amount of Bitcoin in terms of value.
For me, if you have that amount of Bitcoin for sure you already know how the market works, especially exchanges.

I am not sure if the exchange is accountable for this.

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What went wrong with this was he used the low liquidity exchanges. At first, he may looked and searched about the situation of the exchange before using it as it was very important because this is a big factor that affects the outcomes of our trade. He was supposed to be watchful about the price and set on desired price as I believe there is an option there. I could not imagine it going like that, it was a big loss for him and surely it was not easy to move on from that scenario. It was a lesson to learn and to realize how important to use reputable and big exchanges, and most of all, we know how to trade.

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Quote from: nakamura12 on February 15, 2024, 05:00:41 PM

Quote from: Mr.suevie on February 15, 2024, 04:45:17 PM

Like everyone is saying the actual fault is his because he actually didn't make proper search on the exchange or know about selling of his Bitcoin because practicalising.

It is also because he didn't use an exchange that is the most recommended by many, trusted and legit. I don't know how it happened to that person but what I know where most exchange sites even in my country are automatically set the sale price to the market price sell order. In my opinion, even if he did not search then he should be able to see the amount he set and should have double checked no even more than a triple checking everything he does and he wouldn't have lose money.

That's a common mistake done by newcomers to crypto currency; they didn't know the legitimatw sites they should know, and the person in the OP story is most likely panicking to sell or just rushing to sell his assets without thinking carefully about what he should do. The thing is, it's sad that he sells it at a low price compared to what the value of bitcoin is right now. If he just searches for a trusted and legitimate exchange platform like Binance, then there should not be a problem with that. Personally, I only use one exchange platform all the time when I sell or buy assets because it is trusted and legitimate. Why would I go to another exchange? Better use the trusted one.

This should be a lesson to not buy or sell crypto currency assets outside of an exchange platform, or you will end up being robbed.

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Quote from: The Cryptovator on February 15, 2024, 03:16:55 PM

I never heard about that exchange. As far as I know, you can't sell crypto on centralised exchanges below the market price. Means even if you want, you can't dump the Bitcoin price. So when someone places an order by mistake below the market price, the exchange considers it a market price sell order, and it does fill instantly in the market price. I am not sure all exchanges are like this, but I know about Binance. However, we must be careful with our crypto. Whoever owns a large amount of bitcoin should have enough knowledge about crypto and trading as well. Otherwise, this is an example of how they would lose their funds. We should take an important lesson from here.

Binance and the top exchange platforms in the market have the highest liquidity and huge trading volumes, prioritizing their customers, unlike the NovaDAX broker platform, which has been marked on one website called 'Tradersunion.com' to be a high-risk platform with a score of 2.48 out of 10. It is a completely unrecommended exchange platform for traders in Brazil, as many safer and more reliable alternatives or P2P options are available.

Also, we cannot turn a blind eye to the other mistake committed by the person with the story mentioned by the OP, which is his lack of great knowledge of the features, skills, tools, and concepts of trading and its platforms. Perhaps setting a limit order is safer than a market order on these platforms because placing a sell order for a specific quantity and price won't be executed automatically like a market order. This is a harsh lesson for him, and it can happen to anyone, so people must learn from the mistakes of others and be careful not to sell what they have all at once and educate themselves.

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Quote from: Mr.suevie on February 15, 2024, 04:45:17 PM

Like everyone is saying the actual fault is his because he actually didn't make proper search on the exchange or know about selling of his Bitcoin because practicalising.

It is also because he didn't use an exchange that is the most recommended by many, trusted and legit. I don't know how it happened to that person but what I know where most exchange sites even in my country are automatically set the sale price to the market price sell order. In my opinion, even if he did not search then he should be able to see the amount he set and should have double checked no even more than a triple checking everything he does and he wouldn't have lose money.

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

It's crazy. This is also my first time hearing it. Is it their local exchange? Why doesn't he try to transfer it first to another exchnage if the volume there is so small. then, this is really strange, did he not look at the order book? Even if there were, shouldn't automatic selling be achieved at a price that is not far from the global rate? Or what exchange is this? Can it be taken care of like this?

But this is what sometimes becomes a problem, someone is not careful enough in doing something. I am so sad to know this, I hope there is a way out for this person. But beyond all that, we must use it as a very valuable lesson and experience. It is absolutely mandatory to be careful before executing our orders. We may not want this to happen, but if we are careless about the small things, sometimes it will have a big impact. That's why you have to be careful, check it several times before executing it. Whether in trading, transfers, or others.

Mr.suevie

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Like everyone is saying the actual fault is his because he actually didn't make proper search on the exchange or know about selling of his Bitcoin because practicalising. I can remember when I started the earning Bitcoin and for the first time I needed to sell some of the coins, I made proper research and even ask lots of questions so as to avoid mistake of any happening because I know Bitcoin is something that's really precious and I wouldn't want to do something that can get me been regretful.

The Cryptovator

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I never heard about that exchange. As far as I know, you can't sell crypto on centralised exchanges below the market price. Means even if you want, you can't dump the Bitcoin price. So when someone places an order by mistake below the market price, the exchange considers it a market price sell order, and it does fill instantly in the market price. I am not sure all exchanges are like this, but I know about Binance. However, we must be careful with our crypto. Whoever owns a large amount of bitcoin should have enough knowledge about crypto and trading as well. Otherwise, this is an example of how they would lose their funds. We should take an important lesson from here.

Lorence.xD

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Some lessons in life are indeed expensive. There were stories which are somehow alike with this one such as with investors accidentally selling their holdings mistakenly, with the numbers for example they were planning to sell it at $50k then unconsciously overlooking the numbers at $5k. Things cannot be reversed once the transaction has already been filled and it does make sense for such thing. Another is with sending to other addresses and not checking the characters on the recipient wallet. Bottomline is to be careful if something is precious to you and if you don't wat anything inaccurate to happen into it.

No matter how we look at it, the seller is at fault. Not only with selling but also with buying. There are instances sellers were able to buy at their unwanted market price due to sudden 'refresh' with exchange's home page. Either instance it is, we are the only ones responsible of our actions.

Knight Hider

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Don't be that guy, be the other guy. One man's loss is another man's gain. Set a low buy order on an exchange with low liquidity. If you get lucky, you buy someone else's misfortune.

famososMuertos

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Most people buy bitcoins, literally, but do not embrace the concepts of bitcoin and the "basic" responsibility of managing assets on their own.

It is free informative advertising to 'be careful', although in this case, it is incomprehensible,

Novadax it seems like a den where its traders are looking to one day find this type of users, the exchange should have a prohibition for this type of orders to be executed, but they are only interested in the commission.

sokani

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That's the price you pay for using an exchange with little or no liquidity. I think the ideal thing to do when using a non reputable exchange for the first time is to send a smaller amount of fund. The trader made a huge mistake by not testing the exchange with small amounts of Bitcoin before proceeding with the 1.7 BTC. If he had done that all this would have been averted. $88,400 is a lot of money, I just hope it's a bug on the exchange and he gets his money back.

Lukmanfirdaus1

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

I'm sorry to hear news like this, a silly mistake that caused the loss of quite a lot of money, dear. I hope he is strong enough to face this.

Quote from: criptoevangelista on February 15, 2024, 06:48:34 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 valuable lesson for all of us to be careful in matters involving money, especially for exchanges that I don't know or have heard of, you should be able to see the list of buy and sell orders for how much, if the volume is small, don't sell immediately, Bitcoin you will sell at a cheap price, unlike Binance or the top 10 exchanges where the volume, especially Bitcoin, must be very large.

serjent05

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Quote from: Captain Corporate on February 15, 2024, 01:31:36 PM

Honestly, this would be something that does not happen to anyone who knows about trading. Not only we would not pick an exchange like that, people are right that we sell our coins at much better places that has liquidity that could cover 170 coins let alone 1.7 coins. However, we also wouldn't sell at market price neither, we are not stupid, you put the order at the price, and then if its sold then its sold, if not then it stays there until its sold, we do not just say "sell it for whatever", you put out sell order that stays there, and people could buy it whenever they can, which may take time, but at least you do not sell coins for 238 dollars that way. Simple decision really, all traders know this.

It is a rare case but obviously, it can happen to anyone. The key point here is being careless. Even a seasoned trader can make a mistake if he becomes relaxed and doesn't double-check the market prices. People who are used to exchanges that have high liquidity often use market prices for fast transactions, it isn't the exchange's fault that the seller sells his Bitcoin at a loss and it is his fault by not checking the buy order price range so it is a bit biased for some of the replies to call the exchange scammy...

One lesson to learn here, if we are dealing with a huge amount, better check the price range or best set our sell order or buy order to a limit option so that we can set our selling or buying price

goldkingcoiner

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

That has happened to me, in the past, when I was still a newbie. And to be honest, I think the same mistake could happen again, if I am not careful.

Low volume exchanges should be avoided like the pest. There is absolutely no point in trading on such crypto exchanges. Avoiding them as well as avoiding using market orders is really the only way to not accidentally repeat the same mistake of trading in all your Bitcoin for peanuts, by mistake.

And to be completely honest, there is no point in market orders. All you are doing is paying more on trading fees because you are considered as a "taker" instead of a "maker".

Just out of curiosity, did this Novadax exchange not have a warning message in place that pops up and warns users when they are about to sell for a much too low price? Because that seems standard for most exchanges. In fact, not providing a warning might be against some regulation, I think. In which case he might be able to get his money back. Although that is a big maybe since I am just going on a guess.

Captain Corporate

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Honestly, this would be something that does not happen to anyone who knows about trading. Not only we would not pick an exchange like that, people are right that we sell our coins at much better places that has liquidity that could cover 170 coins let alone 1.7 coins. However, we also wouldn't sell at market price neither, we are not stupid, you put the order at the price, and then if its sold then its sold, if not then it stays there until its sold, we do not just say "sell it for whatever", you put out sell order that stays there, and people could buy it whenever they can, which may take time, but at least you do not sell coins for 238 dollars that way. Simple decision really, all traders know this.

crwth

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That's definitely his fault not knowing that his exchange has 0 liquidity and the exchange having the last laugh them getting the Bitcoin.

Shouldn't there be an error with it? Or it's enough that the total amount of buy orders for BTC would amount to 1.7BTC but the price rate that they are buying is so low?

Anyway, using the market sell button in a low liquidity exchange is very bad move. Roll Eyes

thecodebear

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Can't feel bad for that. The person went to an exchange that NOBODY uses if a sell order of 1.7 btc crashed the entire order book to nothing lol.

Only rule is don't use exchanges that nobody uses and nobody has heard of haha. Should be obvious to anyone.

Any regular exchange and that sell wouldn't move the price more that at most a few cents. If you're selling so much money its simply the most basic personal responsibility to take a few minutes to figure out what you're doing.

Alana Arden

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This is very sad, but it is a great lesson for him because he may have been too hasty or careless. As a result, he is facing a big loss today. Because losing such funds these days can be really depressing for anyone for a long time.
Although crypto is open to all, it is a complication or barrier for many. So cryptography is not for everyone without proper knowledge. This is why one must do enough research on popular and reputable exchanges before selling BTC. Because popular exchanges usually have high liquidity, when exchanging BTC, take your time, take various precautions and use exchanges with high liquidity, including avoiding third-party transactions.

EL MOHA

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Quote from: Abu-Naim on February 15, 2024, 10:22:22 AM

Order sells is always confusing if you are a newbie. It is not advisable for newbies to use order if they don’t have the knowledge about orders and how it works; the best thing to do is to use market orders just to sell immediately because if you place order and the order is not executed quickly, the price will affect it and some newbies don’t know how to cancel orders because some exchanges are very hard to use as they are not user friendly.

The two problem here is that first, OP used a non popular exchange, and most of this local exchanges that aren’t popular either centralized or decentralized are always short of liquidity and that’s what happened to OP. Even if he had placed the limit order properly it wouldn’t be executed due to that lack or liquidity.

Also I agree with you that newbies Should avoid limit order and just use the Market order, if at all you are targeting a specific price of the coin, it will be better newbies monitor it manually and then open the position when it triggers. That will be safer pending when they understand the market and limit orders properly

serveria.com

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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 what you get when you're trying to use such scammy exchanges. Even with big exchanges you can get in trouble: the moment you move your coins to the exchange you lose control over it. Not your keys, not your coins they say. And I'm sorry for the guy's loss.

Doan9269

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

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.

Before we make any payment and perform any related buy or sell function, the system will alert us and warn of the action we are about to take, possibly remind us of the risk involved in doing that as well, some of us that are used to p2p sell and on exchanges could relate more better, we don't have to get our minds been divided when trading or making a sell or buy order, this could cause us a serious problem as to the loss of money, we need to verify and if not still sure, reverify again till we are accurately assured that we are on the same page before making any confirmation.

m2017

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Quote from: criptoevangelista on February 15, 2024, 12:14:34 PM

The total sale was not for USD 238, the last purchase order was... the orders were executed from highest to lowest until ending at the lowest order open for purchase: 238 dollars! surreal, right? Whoever bought it was lucky enough to win the lottery.

Sorry, I'm ~~not good at Portuguese~~ don't speak Portuguese at all.

So at what price were those 1.7 BTC sold? I mean the total amount for all orders.

This is not surreal, but quite real, as you see when you leave the conclusion of your orders for large amounts unattended.

Thanks for your clarification.

Quote from: criptoevangelista on February 15, 2024, 12:14:34 PM

We have P2P and even some better brokers, like Mercadobitcoin [1]

So it's all about the broker's dishonesty (Novadax)?

Quote from: criptoevangelista on February 15, 2024, 12:14:34 PM

Possibly whoever made the sale doesn't know how to deal with the financial market, so I imagine that P2P for him is equivalent to an alien.

That’s why, in order to avoid falling into such unprofitable situations, first need to devote time to improving financial literacy skills.

criptoevangelista

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Quote from: m2017 on February 15, 2024, 12:00:15 PM

What problems were there for selling bitcoin with the help of exchangers, like bestchange (in Brazil they don’t know about this service?) or P2P directly? Why use cryptocurrency brokerage? To pay extra commissions?

Why sell bitcoin with one order? Why couldn't it be divided into several portions and sold in parts?

238 USD for 1.7 BTC, well, that's a ~~great~~ deal. Someone made good money from this.

The total sale was not for USD 238, the last purchase order was... the orders were executed from highest to lowest until ending at the lowest order open for purchase: 238 dollars! surreal, right? Whoever bought it was lucky enough to win the lottery.

We have P2P and even some better brokers, like Mercadobitcoin [1]

bestchange I don't know how it works, but I've seen some advertisements on our local board

Possibly whoever made the sale doesn't know how to deal with the financial market, so I imagine that P2P for him is equivalent to an alien.

[1] https://www.mercadobitcoin.com.br

m2017

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keep walking, Johnnie

Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

What problems were there for selling bitcoin with the help of exchangers, like bestchange (in Brazil they don’t know about this service?) or P2P directly? Why use cryptocurrency brokerage? To pay extra commissions?

Why sell bitcoin with one order? Why couldn't it be divided into several portions and sold in parts?

238 USD for 1.7 BTC, well, that's a ~~great~~ deal. Someone made good money from this.

Quote from: criptoevangelista on February 15, 2024, 06:48:34 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 the price of being your own bank.

Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

Attentiveness is never superfluous when interacting with any finances.

franky1

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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

Don Pedro Dinero

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Quote from: NotATether on February 15, 2024, 07:21:11 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.

That's what I thought. I have sold several times shares on the market and I have never had a problem, if the exchange is big enough it sells for approximately what the share price is that day, and in cryptocurrencies it is the same.

Quote from: criptoevangelista on February 15, 2024, 07:32:41 AM

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.

So by saving 15% you risk losing 99%, well, I'm not saying that I like Lula's law but if I lived in Brazil and even more so with this example, I would think twice. Another solution is to sell with a limit order, but in an exchange with low liquidity it can take ages to execute.

Wapfika

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

This is impossible to happened on huge exchange like Binance with huge volume on order book. That’s why it’s important depth chart to determine what’s the price with highest liquidity backing it aka as support wall.

The news is really sad because the user with huge holdings is very dumb and doesn’t care to do research first before he does the market sell. I’m not familiar with the exchange either but he can file a complaint about if the exchange has a huge trading and just suddenly remove liquidity right after he does the market sell on his holdings

Abu-Naim

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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.

Order sells is always confusing if you are a newbie. It is not advisable for newbies to use order if they don’t have the knowledge about orders and how it works; the best thing to do is to use market orders just to sell immediately because if you place order and the order is not executed quickly, the price will affect it and some newbies don’t know how to cancel orders because some exchanges are very hard to use as they are not user friendly.

Apocollapse

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This is the reason why don't create a sell order using the current rate, this will be an advantage for the buyer to drop the price since the liquidity is really low.

Quote from: HelliumZ on February 15, 2024, 07:38:03 AM

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.

Do you think Novadax didn't ask KYC?

Quote from: https://www.novadax.com/en-US/empresa/termos-de-uso

3. CADASTRO E IDENTIFICAÇÃO PESSOAL

3.1. Para utilização do SITE é necessário realizar um cadastro no SITE e enviar a documentação mencionada na POLÍTICA DE COMPLIANCE, a qual recomendamos a leitura, a fim de ter acesso aos SERVIÇOS da NOVADAX.

Non KYC exchange is actually better than KYC exchange, KYC is dangerous and useless, the problem is just the liqudity, but you don't have to worry if you're not in hurry. Just stick with trusted non KYC exchanges e.g. Bisq, Agoradesk, Robosats.

buwaytress

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Been 8 years and never made a mistake with addresses, or price, anything like that. Still double-triple check, probably a bit more than I should, but don't ever want to make a (literal) expensive mistake. Just a few weeks ago, sending to someone, they gave me a wrong address -- my insisting they double checked saved them... just not sure why you'd be leaving things to automation when doing money matters, never mind such large amounts.

Not saying I'll always be infallible but a good reminder to always just be safe. Even if it means using a more reputable exchange, and losing a bit more in a trade. Still. This was an easily avoidable error...

MusaMohamed

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Quote from: Husires on February 15, 2024, 08:10:19 AM

A platform that does not have liquidity of 1.7 BTC is a platform that should be avoided, but I wonder if it will be compensated, as some who lost their money due to technical errors were compensated, and if Novadax cares about its reputation, it may try to provide any type of compensation, especially since the amount is not large for a crypto exchange. Market sell order must be handled with caution, otherwise it may lead you to sell at a price completely different from the price you had in mind. Therefore, selling using limit order is much better, especially since you do not wait a long time if the order is close to the market price.

Novadax is a small exchange with trading volume about $1.5M last 24 hours. For Bitcoin trading pair, its total trading volume is about $420,000, not too much.

However, the loss is likely from a bad order used by the seller and maybe a technical issue on their exchange. If there is no technical issue, the seller must check buy wall and sell wall to see where is next big buy orders before initiate his sell order.

Additionally, selling must be split to some orders, not only one and of course using Limit order is safer than Market order.

Husires

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A platform that does not have liquidity of 1.7 BTC is a platform that should be avoided, but I wonder if it will be compensated, as some who lost their money due to technical errors were compensated, and if Novadax cares about its reputation, it may try to provide any type of compensation, especially since the amount is not large for a crypto exchange. Market sell order must be handled with caution, otherwise it may lead you to sell at a price completely different from the price you had in mind. Therefore, selling using limit order is much better, especially since you do not wait a long time if the order is close to the market price.

MusaMohamed

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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

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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

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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

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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

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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

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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

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Quote from: NotATether on February 15, 2024, 07:21:11 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

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Quote from: NotATether on February 15, 2024, 07:21:11 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

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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

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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

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Quote from: criptoevangelista on February 15, 2024, 06:48:34 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

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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 (Read 479 times)