- A Bitcoin trader just made huge losses panic buying and selling Wrapped Bitcoin (WBTC).
- The trader may be a whale with a balance of 2 ETH and over $7 million across 18 different EVM networks.
- To escape FOMO trading, experts emphasize managing greed.
The trader has consistently bought WBTC at higher prices and sold it at lower prices, locking in losses.
This type of behavior in trading indicates that the trader may be a novice in the crypto markets.
The crypto-trading world is volatile, and the emotional responses of fear of missing out (FOMO) buyers and panic sellers can lead to hefty losses.
Since April 1st, the trader has engaged in six transactions involving Wrapped Bitcoin (WBTC), each time buying at the price highs and panic selling when the price drops.
Upon looking at his wallet, it appears the trader may be a whale, with a balance of 2 ETH and over $7 million across 18 different EVM networks. The majority of his funds are locked in Aave Ethereum Wrapped Bitcoin (aEthWBTC).
The wallet age and the amount of chains suggest the trader is not new to the crypto arena. The first transaction in the wallet was recorded 1,163 days ago (as of the day of writing this article), over 2.5 years ago.
However, according to Etherscan’s on-chain analysis of the trader’s wallet, he doesn’t seem to be very much active on-chain despite the fat wallet balance. For instance, in May 2023, the trader only conducted one transaction for the entire month.
The highest number of transactions he has done in a single day between March 2023 and April 2024 is 12, which seems to point back to the original suspicion that he is a novice.
FOMO Trading is Real and Can Affect Anyone
The trader exhibited classic signs of FOMO while trying to capitalize on further BTC price surges. However, as WBTC’s price began to fall, the trader succumbed to panic, selling off their holdings to cut losses.
This behavior is common in but not limited to newbies. The crypto space is riddled with cases of expert traders making bad trading decisions due to FOMO and panic selling.
WBTC, an ERC-20 token on the Ethereum blockchain that represents Bitcoin, has experienced some volatility since the beginning of the month. The violent price swings of Bitcoin price have also resulted in many experienced leverage traders on centralized exchanges being liquidated. To escape FOMO trading, experts emphasize managing greed.
There are some clear tell-tale signs that can confirm whether you are experiencing FOMO trading:
- You experience emotions of anger, rage or fear during marker movements.
- You don’t follow your trading plan and overrisk.
- You enter and rapidly exit positions when the market moves against you.
- You don’t have a trading plan.
- You are nervous when markets move and you have money in.
The trader’s experience should help investors learn the importance of keeping their emotions in check when trading.