Be very careful and attentive when selling your bitcoins

[m2017]

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.

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.

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.

[criptoevangelista]

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]

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.

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

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

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.

[Doan9269]

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.

[serveria.com]

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.

[EL MOHA]

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

[Alana Arden]

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.

[thecodebear]

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.

[crwth]

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. 

[Captain Corporate]

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.

[goldkingcoiner]

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.

[serjent05]

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

[Lukmanfirdaus1]

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.

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.

[sokani]

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.

[famososMuertos]

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.

[Knight Hider]

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.

[Lorence.xD]

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.

[The Cryptovator]

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.

[Mr.suevie]

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.

[lalabotax]

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.