Bought into a 'can't lose' crypto coin my cousin told me about in 2021.

It was called Luna, and I put in about $2,500 just before it all went to zero. On one side, I feel like I should have done my own research, but on the other, it came from family I trusted. Has anyone else lost money taking advice from someone close?

3 comments

3 Comments

charles_price1mo ago

I read a study last year from some behavioral economists that said people are actually 40% more likely to trust financial advice from a family member even when there's clear warning signs. It's like our brains short circuit the logic part and go straight to "well they wouldn't steer me wrong." I had a buddy who lost close to $10,000 on a similar tip from his brother in law about some NFT project back in 2022, and he said the same thing about trusting family over red flags. Lesson usually sticks though after you've been burned that bad.

henry7631mo ago

Flip it around and ask yourself why you trusted your cousin without checking the basics first. Family giving bad financial advice is still bad advice, and at the end of the day you're the one who hit send on that transfer. Taking a loss like that is a hard teacher, but it usually only happens once before you start questioning everything people tell you about money.

the_lisa1mo ago

Read something the other day about how our brains actually process family advice differently than stranger advice, like we're wired to trust them more. Doesn't make the bank account hurt any less though.