People around the world can attest that the last two years have been interesting to navigate. One of the U.K.’s top social media influencers has a beyond interesting story.
Youtuber, KSI, revealed that he lost more than $5 million by trading cryptocurrency last year. The admittance of the tremendous financial loss comes after KSI has been very visible with his investments in non-fungible tokens (NFTs) and digital currencies, evidenced by his YouTube channel.
In a YouTube video, the famous YouTuber revealed that he used a trading strategy called leverage trading by borrowing money from a broker. The strategy, which he fully regrets, led to this significant loss.
Leverage trading is a way for traders to use the borrowed funds from brokers to increase their exposure in the market while paying less than the total price of the desired stock. In this process, the trader takes on a more prominent stock position.
Sounds like a dope idea? While the process seems beneficial, it comes with significant risks. In this trading scenario, the possibility to gain and lose is magnified by the amount borrowed, and there is no natural way to predict where a trader will fall on the spectrum.
Advice To All
Taking ownership of his ignorance toward the details of this strategy, KSI has a central message for those that follow him: “Note to self and to everyone watching, never leverage trade. You don’t win; you never win.”
Although losing seven figures would be incomprehensible to some, KSI isn’t that phased by the significant loss.
“My crypto experience has just been, just a lot of losing. A few wins and then more losing.”
His optimistic attitude is commendable as he laughed off the loss as a learning lesson.
Regardless of his disposition concerning the situation, commenters could not relate to KSI’s optimism. YouTube commenter, 360 Fvo, stated, “When you can lose 5 [million], and it’s no big deal, you’re living a different kind of life.”