This Crypto Noob Invested $10K in USDC For Weeks Expecting Gains

An investor who arrived late to the last crypto cycle recently shared an amusing experience of their first investment into the space. Posted by anonymous crypto handle Coinfessions, the unnamed noob got into the market in search of an opportunity to make up to 10x on their investment.

According to them, they purchased USDC, expecting the coin to go up as the entire market was peaking at the time. However, the investor did not realize that it was a stablecoin and hence did not increase in value as most cryptocurrencies. Stablecoins are instead used to hedge against market volatility and are expected to trade in parity with the dollar.

“Several weeks would pass before I understood what USDC actually was,” the unnamed investor shared with Coinfessions.

I was a crypto noob during the last cycle and was late to the party. I invested 10k into USDC thinking it would easily 10x as everything else was peaking. Several weeks would pass before I understood what USDC actually was.

— Coinfessions (@coinfessions) June 24, 2024

Crypto Education Indisplacable for Newcomers

The crypto community shared the humor in the latest story, with many joking that the noob investor might have outperformed many traders by simply holding USDC. Another added that the unnamed individual may have saved himself without knowing it, especially as the market saw a substantial decline after the market peak.

Obviously, the biggest takeaway from the story is the need for newcomers to the cryptocurrency space to acquire the requisite knowledge before investing in the industry. Such knowledge equips investors to make better investment decisions. For instance, the noob investor may have still earned some returns on their stablecoin holding by locking it in an exchange’s earning product or on a decentralized finance protocol.

Meanwhile, CoinTab provides beginner-friendly articles and coverage of market-moving cryptocurrency news and price analysis.