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Crypto Newbie's First Experience! US Stock Celebrity Dave Portnoy: Lost $25,000 in Ten Days, I'm Done

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Crypto Newbie

US stock day trader Dave Portnoy has been making headlines frequently in the past few months. In early June, he mocked the stock god "Buffett," and in early August, he invited billionaire twins Winklevoss to teach him about Bitcoin and bought some. However, in less than ten days, the US stock influencer posted saying, "I've lost $25,000 and no longer hold any Bitcoin."

Why Are Stock Day Traders Turning to the Crypto Market?

Dave Portnoy, the founder of the popular sports and pop culture forum Barstool Sports in the United States, is also a stock day trader who regularly shares his investment views on "Davey Day Trader Global (DDTG)" live streams. On June 9th, during one of his live streams, he mocked Warren Buffett as a "moron," which garnered significant media attention.

Fast forward to early August, Portnoy's live stream topics began to revolve around the recent surge in Bitcoin. In a live stream on the 4th, he invited Bitcoin billionaire Winklevoss brothers to the show, claiming that if they could help him understand how Bitcoin works, he would be willing to delve deeper into researching Bitcoin.

The Winklevosses readily accepted the invitation and on August 13th, they explained the basics of Bitcoin to Portnoy on his show. Portnoy also bought around $200,000 worth of Bitcoin and $50,000 worth of the oracle project Chainlink (LINK).

Crypto Market Shock, Portnoy: "I'm Out"

After getting into cryptocurrencies, Portnoy went all out to promote Bitcoin and the LINK token to his Twitter followers. This included tweets like "$link to the moon" and claiming to be a member of the project promotion group "Link Marines," as well as investing in the decentralized VPN project Orchid Protocol (OXT). He tweeted:

We (Link Marines) will make those who sell LINK pay.

However, after Portnoy held these cryptocurrencies, the performance of Bitcoin remained stable, while LINK dropped by about 21% since his purchase. Additionally, he announced buying OXT on the 17th, which was at a high point, around $0.7 at the time, and has since dropped to $0.5.

Such dismal performance led Portnoy to announce his exit from the crypto market today (22). He stated on Twitter:

I have no more Bitcoin. I will wait, observe. This is like when I lost $25,000 in the stock market, then spent a lot of time to understand the stock market.

Portnoy seems to still hold a glimmer of hope for the cryptocurrency market and does not rule out the possibility of re-entering. However, he later tweeted again:

I'm not playing with cryptocurrencies anymore. These tokens won't keep going up, but stocks will always go up.

What Can We Learn from This?

Portnoy being "rekt" caught the attention of Adam Back, known as the "Bitcoin father," who replied to Portnoy:

You shouldn't buy these junk coins. These projects are just to keep people away from Bitcoin (or their funds). Bitcoin is highly volatile, and I think long-term holding (HODL) is the best way because the best profit period might only be a few days in a year.

Holding it for a few years is better than day trading Bitcoin. If you still want to day trade, many platforms offer Bitcoin perpetual contracts, which can improve risk-return ratios, and you don't need to touch those altcoins.

In reality, Portnoy did not walk away empty-handed. The crypto lending platform BlockFi became his sponsor, which should somewhat offset the losses he incurred from trading cryptocurrencies.

(Source: Barstool Bets)

Furthermore, Portnoy initially invested $250,000, and it is uncertain whether he directly purchased Orchid Protocol OXT with Bitcoin or used additional funds. With a total loss of $25,000, roughly 10% of his principal, it underscores the importance of setting stop-loss orders. To survive in the market, timely stop-losses are essential because no one knows how deep the decline will be.