This situation serves as a lesson to all crypto traders, who are primarily focused on making quick money through memecoins. On Sunday, while the world took a break to enjoy their leisure time and personal space, a user jumped into the memecoin bandwagon to book some quick profits. Sadly, the market does not act on what we want but charts its own course, disappointing the majority of them.
One such crypto investor lost $73,900 in just 3 minutes by trading memecoins on Sunday. He made the most common mistakes that everyone can relate to, but it also acts as a lesson to others on what not to do. So here we go — the common mistake that the trader fell into, which is a lesson for all.
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Crypto Traders Watch Out: Memecoins Can Deliver Major Losses If You Don’t Play Right
A crypto trader entered the most trending memecoin, RICH, as its price dropped significantly in the charts. Sensing an opportunity for an upside swing, he quickly spent 198 SOL and brought RICH tokens. Unfortunately, to his dismay, RICH plunged 60% after his investment, eating up a large share of his money.
The crypto trader panicked and sold all his RICH tokens, converting them to SOL, which had now become only 76. He took a loss of 122 SOL by trading the memecoin. However, a few minutes after he sold all his RICH, the token rebounded in value and turned green. This led to the investor facing the classic FOMO and reinvesting 297 SOL into RICH.
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Once again, RICH plummeted another 60% from then, and the crypto trader panic-sold for 93.5 SOL. He took another loss of 203.5 SOL, burning a bigger hole in his wallet. Memecoins trade in the world of their own, and crypto traders cannot put a pin on their back. In total, the investor lost 325.8 ($73,900) in just 3 minutes.
Ironically, the same RICH token soared 30 minutes after he sold his position. Panic-selling led him to face severe losses, and waiting for 30 minutes could have given him brief profits. The lesson to all crypto traders here is, do not panic while being invested in memecoins.