Be very careful and attentive when selling your bitcoins

[nakamura12]

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.

It is also because he didn't use an exchange that is the most recommended by many, trusted and legit. I don't know how it happened to that person but what I know where most exchange sites even in my country are automatically set the sale price to the market price sell order. In my opinion, even if he did not search then he should be able to see the amount he set and should have double checked no even more than a triple checking everything he does and he wouldn't have lose money.

[albon]

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.

Binance and the top exchange platforms in the market have the highest liquidity and huge trading volumes, prioritizing their customers, unlike the NovaDAX broker platform, which has been marked on one website called 'Tradersunion.com' to be a high-risk platform with a score of 2.48 out of 10. It is a completely unrecommended exchange platform for traders in Brazil, as many safer and more reliable alternatives or P2P options are available.



Also, we cannot turn a blind eye to the other mistake committed by the person with the story mentioned by the OP, which is his lack of great knowledge of the features, skills, tools, and concepts of trading and its platforms. Perhaps setting a limit order is safer than a market order on these platforms because placing a sell order for a specific quantity and price won't be executed automatically like a market order. This is a harsh lesson for him, and it can happen to anyone, so people must learn from the mistakes of others and be careful not to sell what they have all at once and educate themselves.

[Assface16678]

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.

It is also because he didn't use an exchange that is the most recommended by many, trusted and legit. I don't know how it happened to that person but what I know where most exchange sites even in my country are automatically set the sale price to the market price sell order. In my opinion, even if he did not search then he should be able to see the amount he set and should have double checked no even more than a triple checking everything he does and he wouldn't have lose money.

That's a common mistake done by newcomers to crypto currency; they didn't know the legitimatw sites they should know, and the person in the OP story is most likely panicking to sell or just rushing to sell his assets without thinking carefully about what he should do. The thing is, it's sad that he sells it at a low price compared to what the value of bitcoin is right now. If he just searches for a trusted and legitimate exchange platform like Binance, then there should not be a problem with that. Personally, I only use one exchange platform all the time when I sell or buy assets because it is trusted and legitimate. Why would I go to another exchange? Better use the trusted one.

This should be a lesson to not buy or sell crypto currency assets outside of an exchange platform, or you will end up being robbed.

[Natalim]

What went wrong with this was he used the low liquidity exchanges. At first, he may looked and searched about the situation of the exchange before using it as it was very important because this is a big factor that affects the outcomes of our trade. He was supposed to be watchful about the price and set on desired price as I believe there is an option there. I could not imagine it going like that, it was a big loss for him and surely it was not easy to move on from that scenario. It was a lesson to learn and to realize how important to use reputable and big exchanges, and most of all, we know how to trade.

[GreatArkansas]

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.

I'm curious how he got that amount of Bitcoin at first, it's a huge amount of Bitcoin in terms of value.
For me, if you have that amount of Bitcoin for sure you already know how the market works, especially exchanges.

I am not sure if the exchange is accountable for this.

[AmoreJaz]

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.

I'm curious how he got that amount of Bitcoin at first, it's a huge amount of Bitcoin in terms of value.
For me, if you have that amount of Bitcoin for sure you already know how the market works, especially exchanges.

I am not sure if the exchange is accountable for this.

but if the trader sell it a market price, then it is the trader himself who is at fault here. lucky if you are trading in binance because that amount of btc is actually small and he can get a very good deal for the sell price. because they have very high liquidity, the usual gap of price is like few bucks only and the trading is very fast. this is why it is always advisable to trade in an exchange with good trading volume. because if you happen to trade in a small exchange, the movement is slow and the price level is usually lower than the leading crypto exchanges.

[South Park]

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.

A huge mistake, but one that is on him completely, exchanges do their best to increase the volume going through them as this means more profits, but with the high level of competition it is normal there are many exchanges that have a very low volume, so he should have checked beforehand if the exchange could handle such an operation, and once he realized this was not the case he could have sold his coins somewhere else, I just hope he has many more coins, otherwise this is going to be a loss that is going to haunt him all his life.

[hatshepsut93]

With Bitcoin you always have to tripple-check every single step that you make, because there's lots of ways you can make a mistake that will cost you your investment.

If I were to sell 1.7 BTC, I would split it into like 4-5 batches and sell them over a few days or even weeks. The absolute worst case scenario if something goes wrong is losing 1/5 of the stash instead of all of it.

[dothebeats]

This is why you should always check the order books, see whether the exchange is liquid enough to take on your order, and double check everything before commencing the trade. I'm not sure whether Binance is available on that part of the world, but if it is, then he will not have any problems regarding liquidity. Or he can even try and do a P2P to make sure that he's paid a somewhat fair market price. Ultimately, the neglect is on the end of the seller not checking things before executing the trade. An unfortunately expensive 'charge to experience' moment for this man right here.

[Darker45]

This is an extremely careless mistake. I wonder how somebody can commit such negligence.

For one, it's a big question why he chose that unknown exchange. Second, upon seeing that the exchange lacks liquidity, why did he push through? Moving to a reputable exchange was a little effort in relation to the amount of Bitcoin he wanted to sell. Third, even if he wanted to stick to the exchange, why didn't he set his own preferred price in the sell order? Didn't he realize that the selling price was ridiculously low? Finally, he should have double-checked everything. And if I'm not mistaken, exchanges would ask you to confirm your price before your order is listed. The man seems extremely careless.

[dzungmobile]

what most likely happened is the user typed in for instance 52.000 instead of 52,000  (period instead of comma)
so it sold down all orders from $52,000 down until $238 where all 1.7btc was eaten

also by using a crap exchange that only had <2btc between 52,000 down to single figures meant there was no order wall to prevent such drop
EG better exchanges that have more the 2BTC wall at 51,800 means the order would have only fallen to 51,800

I think it is not because Bitcoin price is high enough to ignore decimal.

He can type 52000 and don't have to mind about dot or comma.

If Bitcoin price is like $5 or $52, your assumption can be true because with these small price, $0.1 can make sense and have effect on profit taking.

[0t3p0t]

If in doubt don't. That is what I kept in mind when selling Bitcoins and I also choose the right exchange to sell my coins and that's no other than reputable local or international exchange to ensure that my sell order won't be compromised with the flow of liquidity. Lucky for us we have this local e-wallets that supports crypto we can easily convert Bitcoins to our local currency.

[Nothingtodo]

If in doubt don't. That is what I kept in mind when selling Bitcoins and I also choose the right exchange to sell my coins and that's no other than reputable local or international exchange to ensure that my sell order won't be compromised with the flow of liquidity. Lucky for us we have this local e-wallets that supports crypto we can easily convert Bitcoins to our local currency.

Like you, I don't buy and sell bitcoins on exchanges with low liquidity, especially the exchanges I sell bitcoins on have P2P trading systems in my local currency, so I exchange bitcoins directly in my local currency. However, in the case of Bitcoin trading, you should definitely select an exchange with KYC and more liquidity, and you should make sure that the order you place has enough liquidity in the Bitcoin exchange.

[adaseb]

Yeah I am not surprised this happened at all. There are many coins which have illiquid order books and people market sell there anyways.

I am assuming this happens because the seller is inexperienced and just market buys and sells everything due to being impatient. When I started trading I was like this also. Had no idea what limit orders were or they just seemed very confusing, especially with stocks.

Basically it’s not a good exchange at all when such a small order can cause this much slippage.

[ancafe]

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.

That's why we are required to be more careful in doing everything, including when ordering any price. Mistakes made are basically caused by carelessness or people can also lose concentration when doing them. But if this continues to happen and someone doesn't try to be more careful then it could end in big losses and this wouldn't be fun for anyone to experience.

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.

If I don't misunderstand what you mean and I think it was a mistake in entering the numbers when pressing the selling price on the exchange. I have also experienced the situation of entering the wrong selling price and unfortunately the price I ordered was far below the standard price that day.

[Kakmakr]

So, the lesson to learn here, will be not to sell coins at these small exchanges. Also, why did he sell all his coins in one big transaction?

He should have known that the exchange is small and that he has to sell in smaller chunks to accommodate for the liquidity.

Unfortunately, he learned the hard way and other people learn from his mistakes.

[coinerer]

People should sell their coins at an exchange that has a large enough liquidity and not one that lets them punch in a custom buy and sell price, if all they care about is liquidating their bitcoins. Because these user-set prices are only useful to traders. Almost nobody is going to want to sell at those prices. (The same cannot be said for buying.)

Most exchanges do a good job at hiding this discrepancy, by having buy/sell prices but just not letting the users change them.

Right. If you just want to cash out your bitcoins without getting into the trading details, it's smart to pick an exchange with lots of people trading. Some exchanges let you set your own buy and sell prices but honestly not many folks are likely to go for those prices when selling. It's different when buying like more flexibility there. Many exchanges keep it simple by not letting users mess with the prices which helps avoid some headaches in the process

When you selling your bitcoin you must follow the present price from coinmarketcap and you must choice a reputable exchange where high liquidity is available. in this case i always use Binance or Kucoin if i sell a big amount of bitcoin or any other coins. many exchange only offer you many potential offer like kyc free or something else but you will not able to exchange a big amount of crypto. so everyone should be careful on this

[livingfree]

That's painful to read.

Someone who probably has accumulated that for so long and then ended up with a huge loss and is far from breaking even. This is a lesson for everyone if you're going to sell, choose a better exchange and always check their liquidity.

There are exchanges that you can automatically sell it to them and don't have to go to spot so you sell it on an instant but the spread and rate is quite lower than of the markets.

Surely that guy have learned his lesson but on an expensive way.

[franky1]

what most likely happened is the user typed in for instance 52.000 instead of 52,000  (period instead of comma)
so it sold down all orders from $52,000 down until $238 where all 1.7btc was eaten

also by using a crap exchange that only had <2btc between 52,000 down to single figures meant there was no order wall to prevent such drop
EG better exchanges that have more the 2BTC wall at 51,800 means the order would have only fallen to 51,800

I think it is not because Bitcoin price is high enough to ignore decimal.

He can type 52000 and don't have to mind about dot or comma.

If Bitcoin price is like $5 or $52, your assumption can be true because with these small price, $0.1 can make sense and have effect on profit taking.

if you look at the OP image carefully.

 where its showing just some of the prices of orders.. you will notice
$47.335,36  period     comma

so a mis selection of putting a comma where a period should be and a period where a comma should be. would cause a order wanting to only sell at $52,000 become an order willing to sell all the way down to $52.00 should a lack of buy orders not exist to to fill all sats sold before hitting bottom

[lovesmayfamilis]

There are lots of questions and illogical actions. The OP is indeed right in saying that the person was in a hurry to get rid of his Bitcoins, and the quantity makes one wonder why there is such a rush. If he chose an unknown exchange, does that mean he could be hiding something? Owning a decent amount of Bitcoin but not knowing what to do with it correctly strongly suggests the idea that he got it by accident. Therefore, there is no awareness of where to trade correctly, but there is a goal of cashing out, nothing more.