Topic: Chinese Crypto Trader Committed Suicide ( lesson for all crypto traders ) - page 3. (Read 738 times)

The lesson really here is never trader what you can afford to lose, this man knowing that he be buried in debt did what he think he can only do in order to escape that from happening. I know the pay off from a leverage trade is big but the risk is also bigger its your typical high risk high reward scenario but the problem here is he is not trading with his own money which makes the trade far more riskier. Sad that he also brought other people down with him you cannot really believe all the people you meet nowadays.

It's unfortunate to let him go and maybe he also doesn't expect to lose what he has and bet, it's very surprising with other people who are very brave to get rid of him and he forgets the mental strength he has after a disaster occurs, yes it becomes very useful learning for everyone in the future so they can avoid excessive risk, think carefully before doing something that allows them to lose because it is useful for everyone.

I'm assuming the money was mostly the customer funds instead of his own.  Because that is more than enough money to live off and fulfill most of your dreams.

High leverage is just gambling at its core and the only consistent winners are the leverage platforms.  You never know when a whale will decide to pump or dump the price a quick 10%.

If the articles I've read on this are true and the guy used 100x leverage (potentially on a site like Bitmex?), the guy was then essentially gambling with 2000BTC. Tiny moves liquidate you on 100x leverage and I would never even consider using 100x leverage even if I was 100% sure where prices will go, even with a tiny percentage of my trading stack.

I used to use 25x leverage in the past, and even that wasn't good enough for me because your liquidation price is still very close to your entry. I use 10x leverage maximum nowadays, typically on 6x. Also important that you do not ever overtrade or revenge trade- take a break if you ever feel like you want to do either of these things and do something else. It can be hard, but it's very good to know when to cut your losses early so they don't grow.

This is purely out of greed, also there can be other reasons as well same as that of the Quadrigax. Before risking such a huge fund surely he could've thought much about it. Also he's a trader who has been into the cryptocurrency trading for a much longer time period. There is something hidden in this incident and if it is true the traders who always prefer risking to get big profit will consider it a learning.

Assuming the news is true, and this person didn't pull off a QuadrigaCX, isn't what he did such a rookie mistake for a co-founder and CEO of such a platform? You would expect a lot better risk management from a person in such a position. It just doesn't add up in my opinion.

What would happen to him if he didn't kill himself?

Probably the question he face after losing all that 2000 BTC. Its going to pressure him for the rest of his life. We've all heard these kind of stories before but only those Asian guys can afford to take their life. The people behind cryptopia and mtgox didn't do it. 

That is a sad story to read that news.
We don't have to take a big risk if we cannot take it.
It is better to use the normal and safe from the risk although the risk still there.
Use only small leverage if we don't have good skills and that will help us to prevent a big loss.

 

Is lots of money, I can not imagine taking all this money to make trade


This is a very sad news, and I think the guy must have been very shocked to learn that he lost millions of dollars, about his suicide issomething that I still can not understand, he used the company's money?


I believe they would not do it, because it would be a crime



there are cases that are not so easy to solve, let's imagine that this Chinese took the money from his clients he could not return, he only had 2 options:

- commit suicide

- be arrested and be years in jail


 

Oh yes, you can stay a lifetime and never earn even 2 million dollars and imagine $ 16 million dollars?

100x Leverage is deadly specially if you make a wrong move in margin trading if you know trading you will understand what I'm saying but based on the article this person is high risker to gamble a huge money (2000) by the way Rest in peace dude.
Always remember theres no easy way to earn huge money quickly, no lambo all you need to understand is to be positive and make hardwork.

Trading is pretty similar with gambling, if you put a lot of money, you should ensure you can afford to lose it, otherwise, this unfortunate thing will happen to you. Money is still the root cause here, and if this person is not greedy, he could accept his mistake and just move on although it's not that easy to do considering the amount of money he lose. 

Such high risk investment surely leads to high mental pressure. Increase in price may lead to good profit but the same time little decrease in price can lead to high loss. The first rule to any investment is " Only invest the amount which you can afford to lose" taking such high risk is surely not recommended. I do not know truth behind this story but if this is true then its really sad. The person might have luxurious life but high greed made him to take such extreme step. Any investment in any financial market should be done with calculated risk.

The first thing in the morning, the news appeared on my screen and I was like, "What? How?" Not until I've read the full article in this link and I've found out the real reason why he did that.

He actually lost 2,000 bitcoin, super duper big amount of money is involved here. Let's say the price of bitcoin now is $8,000 x 2,000 btc = $16,000,000 with a SHORT ENTRY AND HIGHEST LEVERAGE. He was liquidated because it immediately made a sideway.

Yi is a co-founder and CEO of market analysis crypto playform BTE. Well, I was not familiar with their company. His ex-partner revealed Yi's dead on June 5 which made some rumors that it is just an exit scam and fake his death to escape from his clients. We don't really know the truth behind it.

This is indeed a lesson for all crypto traders around the world. We just can't put an entry if we can't afford to lose. Yes, it is a huge amount. But that was just a money. I mean., we can not just die because of it. Life is beautiful and we have family and friends. The main reason we are living. We can just earn money, we can earn that $16,000,000 for lifetime. Lol.

But personally speaking, please crypto trader. I know we sometimes make an entry without thinking. But we can actually:

• Set STOP LOSS
• Enter SMALL LEVERAGE like 5x-10x only. UNDERSTAND how leveraged really works.
• DO NOT BE GREEDY
• Think of your family before you BET ALL in your capital
• Even the best TECHNICAL ANALYSIS will be useless when whales or the market is not in your side

Crypto Traders. I am very disappointed and was disturbed with the news. Big part of me was devastated. Please be careful on our entry, my fellow margin traders.