A 36-year-old vice president of a tech company in China recently recounted his story of losing 1.8 million CNY in trading crypto. The anonymous crypto investor quit his job in last December which brought him an annual income of close to 300,000 CNY and dedicated himself to the crypto market, which offered him a painful lesson.

1.6 Million CNY of Profit From Resale of OneThing Cloud

The man met a post-90s crypto investor, who earned more than 2 million by trading BTC in a month, on a trip to Shenzhen last summer. And the young man’s words have stirred up his interest in the cryptocurrency investment.

When he returned home after the trip, he happened to see the launch of OneThing Cloud, a Xunlei-launched product that leverages users’ idle computing resources and organizes them into a massive cloud computing infrastructure.Interestingly, OneThing Cloud was a must-buy item if users wanted to receive a reward of Wanke Coin, Xunlei’s own blockchain-based cryptocurrency, when sharing their idle network bandwidth on its platform. It seemed a profitable business.

Then, the man spent more than 200,000 Yuan to buy 1000 devices. Soon after the purchase, the market’s reaction took him aback. He had planned to sell all devices with a profit of 10%, but the price of OneThing Cloud experienced a surprisingly meteoric rise with an increase of 100 CNY every few hours in Alibaba’s Xianyu marketplace. The supply of One Thing Cloud fell short of rising demand.

The excited man,however, was soon tricked into giving 10 devices to scammers on the platform for free due to lack of trading experience. In order to prevent the risk, he sold the remaining 990 devices in total to a Qingdao-based man for 1.6 million CNY.

Quit Job and Borrowed Money to Buy Cryptos

Everything seemed to go smoothly. So the man decided to quit his job and put nearly 1.2 million gain from selling OneThing Cloud into the crypto market in last December.

He invested 10,000 CNY first in an exchange token, and to his surprise, the cryptocurrency’s price grew 20 times in a week. But it did not give him great delight, and he regretted not investing 1.2 million CNY in it in one go. In that case, his yield could be multiplied 120 times .

In fact, a lot of crypto investors were living in fantasy as most of cryptocurrencies on the market were seen a major price surge in the end of 2017. Investors were eager to see the value of tokens could double again, bringing them closer to financial freedom. But no one knew that whales, hackers and financial predators who hided behind the scene began to reap profits.

The man also ignored the risk and rounded the investment funds up to 2 million CNY by cashing out more than 300,000 CNY from a POS terminal. And with just a cursory glance over ICO white papers, he blindly invested in several tokens of public blockchain, a few of which were elaborately fabricated scams.

Then he dreamed of a five or ten-fold increase in those tokens, and wished to take profits to buy a big house and a luxury car. But a cryptocurrency crash was approaching.

1.6 Million CNY of Profit became 200,000CNY in Debt

Cryptocurrency prices have taken a beating since January this year with a large number of tokens crashing to less than half their December values. The man did not escape the market crash. His digital assets were less than one-tenth of the input, and still owed 200,000CNY to the bank.

For a rookie crypto investor, it was a painful lesson. Through this experience, the man has gleaned some crypto investment tips: