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How Paper Hands Lost Me $4k In Crypto Last Night

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@gualteramarelo
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https://3speak.tv/watch?v=gualteramarelo/ijnpylpu&utm_source=studio&jwsource=cl

What a painful lesson this last 24 hours has taught me...

One of the biggest complaints I have about Real Estate Investing is that it has the lowest level of liquidity. Even if I wanted to sell one of my properties the whole process can take anywhere from 2-6 months and so this lack of liquidity can mean not being able to quickly jump into great opportunities.

I took an adventure away from the CUB pools last week and ventured into the world of Pancakeswap. They had 2 pools that were showing a 600% APR and my paper hands started to itch! I did quick math and realized that I could take 1/3 of my CUB/BUSD holdings and drop them into these new pools to double my daily returns.

The Problems With This Thinking

For starters I wasn't thinking about how many people are on the pancake platform and how quickly the APR's are likely to decay. I also wasn't aware of the process they have for offering a 2x multiplier for new pools and quickly dropping to a 1x which halves your APR instantly.

The other factor is that Bitcoin and Crypto as a whole had a pull back this weekend which decreased the value of the coins I was pooling Broobee/BNB. Both coins had significant losses overnight with people leaving the pools for other investments.

When I woke up in the morning I was devastated and my temporary case of paper hands began to itch again! So I quickly devised a plan to sell out of Pancake and move my funds into the CUB/BNB and BLEO/BNB pools because I knew I would eventually see BNB and the other 2 coins come back over the next few weeks.

That thinking was actually a good move... But my case of paper hands wasn't over...

Where It All Fell Apart

About 2 hours went by and I was doing the math on what I would lose or gain if BNB just recovered and if we saw a 15% increase in price over the next few weeks I would have the lost cash back, plus the APR's of these pools have a very low decay rate. If only I had trusted my years of investing experience and held that position, but as I said... I was still suffering from paper hands and it hadn't run it's full course...

Foolishly I closed out those pools and opted to officially take the full loss and jump my remaining $16k usd back into the CUB/BUSD pools by justifying in my head that I'll be able to make the losses back over the next 2 weeks and start fresh. For anyone who is paying attention to the prices, BNB has made a near full recovery and is back on track to hit it's previous high OVERNIGHT!

Learn From My Mistake!

Last night I made one of the biggest mistakes of my crypto investing career and I noticed how dangerous having extreme liquidity can be. I am often hearing about the diamond paws here in this community and I have to give it up for all of the CUB investors who have been hodling these past few weeks! We know that @khal and the development team are working on dozens of projects that will keep adding value to the LEO-CUB family of coins and we are still in the beginning stages. Prices are low right now and we should be aping in and holding for the long term.

Earn Hive, Earn Leo, Earn CUB, but never sell!

As always I'll be sharing the profits from this post with my beneficiaries who are my close companions and keep me sane through this process of learning and earning crypto. Shout out to @darina.pogodina who is my rock. @leoschein and @scaredycatguide who bounce investing strategies and information back and forth with me everyday! I appreciate you guys and I love this LeoFinance community! I am back in the Hodlgang and am working my way up to those Diamond Paws!

Posted Using LeoFinance Beta