Ethan Nguonly, a 22-year-old Google software engineer, started investing in stocks during his teens with his parents' support. Today, his diversified portfolio includes retirement accounts, brokerage assets, and two residential properties in Florida and California—totaling ~$135K. Despite his ambitious "retire by 35" goal, Nguonly faced a major setback: losing **$80,000 (HK$630K)** in cryptocurrency trading.
The $63,000 Mistake: Overleveraging in Crypto
Between November 2021 and June 2022, Nguonly used margin trading (leverage) to amplify his crypto positions, ultimately losing $80K—including $30K principal and $50K unrealized gains.
His strategy?
- Held Bitcoin (BTC) and Ethereum (ETH) (~$40K value)
- Dabbled in altcoins like Shiba Inu (SHIB) and Dogecoin (DOGE)
- Borrowed $15K via margin to buy more BTC during market peaks
When BTC’s price crashed 70% in mid-2022, Nguonly received margin calls—forcing him to liquidate holdings to cover debts.
"I invested money I didn’t actually have. When the market reversed, losses compounded."
Why Margin Trading Backfires
| Risk Factor | Outcome |
|-------------|---------|
| Leveraged bets | Losses exceed principal |
| Volatility | Margin calls trigger forced sales |
| Altcoins | Higher crash potential |
Expert Takeaways: Safer Crypto Strategies
Assess Risk Tolerance
- Only invest "play money" you can afford to lose.
Avoid Overleveraging
- Margin/options multiply risks—never borrow to invest.
Stick to Blue-Chip Crypto
- Nguonly now focuses on BTC/ETH, avoiding speculative altcoins.
Diversify Beyond Crypto
- ETFs and real estate offer stability.
Nguonly’s Current Approach
- Allocates <10% of portfolio to crypto
- Prioritizes long-term holdings over trading
- Uses dollar-cost averaging (DCA) to reduce volatility impact
FAQs: Crypto Investment Safety
Q: How much should I invest in crypto?
A: Experts recommend ≤5% of net worth for beginners.
Q: Is margin trading ever worth it?
A: Only for experienced traders with strict stop-loss plans.
Q: Which cryptos are safest?
A: BTC and ETH have more institutional backing than altcoins.
👉 Learn how to trade crypto responsibly
Key Lesson: "Invest only what you own—never chase losses with borrowed funds."
Nguonly’s story underscores a critical rule: Crypto’s volatility demands humility and discipline. While he still believes in blockchain’s future, his strategy now balances growth with preservation.