AN INVESTOR has shared how he was left with $60,000 locked inside his bitcoin wallet after he forgot the password.
The man named Dylan, 27, said he got involved in cryptocurrencies back in 2013 but forgot about his bitcoin wallets until six years later.
And although he was able to recover access to one of his wallets, he still cannot remember the password to another wallet that contains a bigger sum of money.
He told the Vice: “I lost access to one of my wallets but then found access to the other.
“It had gone up by, like, 10,000 percent. There wasn’t much in it but it was quite a significant jump.
“My Dogecoin went up by about 800 percent and my Bitcoin went up. I’d say I put in $60 and it went up to $8500.
“But that was just purchasing and forgetting about it.”
When asked about the amount of money he has locked into the wallet he estimates it is between $50,000-$60,000.
“I’ve been through all the motions, I just can’t find the password,” he said.
Dylan added that he is out of the market now and will “certainly not” be investing again.
Crypto can be riskier than other investments because they are volatile and speculative – their price often rises and falls very quickly, sometimes seemingly for no reason.
Many cryptocurrencies have a short track record, making them difficult to understand and predict.
This type of investment is also not protected by the regulator which means you have no protection if things go wrong.
Earlier this week an investor revealed how he lost almost £1million after investing £23,000 in crypto.
Peter McCormack, 42, described how he lost the amount when the bubble burst in January 2018 but added that he does not regret it.
A Shiba Inu investor has shared how they has been left homeless as all their life savings are tied up in cryptocurrency.
Despite ending up living in a garage, the investor refuses to sell their cryptocurrency until it makes them rich.
Another man lost £140,000 worth of Ethereum after falling victim to a cryptocurrency scam.
The scam was essentially a fake cryptocurrency wallet that he accessed after clicking on a fake Google ad.
The UK regulator has warned that Brits risk losing ALL of their money if they invest in cryptocurrencies.
If you are considering investing in any type of crypto, do your research first and only invest money you can afford to lose.
Be wary of scams, too, as the crypto market is often a target for fraud.
Look out for fake celebrity endorsements or social media profiles pushing certain coins.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
The risks of buying with cryptocurrencies
Investing and making a purchase in cryptocurrencies such as Bitcoin is risky .
Their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
You should also think carefully about making purchases with a cryptocurrency.
For example, Bitcoin has had wild price fluctuations in recent months and the price can change on an almost hourly basis.
The price of a Bitcoin was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% drop.
These price swings are risky for a business as you could sell an item for a Bitcoin at one price and the value may drop soon after, leaving you with less money from a sale.
Similarly, the price of Bitcoin has soared by more than 21% since the start of this week so it can be hard for a shopper to get an accurate idea of the price of an item if its value changes on a daily basis.