Dangers inside crypto investing
People may ask: Should I do invest in the cryptocurrencies by using my life earning and savings? Or should I take a loan out? Since I heard that the returns are so great!”
First off, that is really an extremely horrible idea. Cryptocurrency volatility can kill your pocket and rapidly reduce all your hard-earned investments.
If you know what you are doing then you are alright, but if you don’t know and you are in mystery then you can basically lose all your money. People who are well informed and kinda geniuses do not let themselves fall into the trap of “GetRickQuick” schemes and or scams.
If you look at the early investors in bitcoin and hardcore traders you see that it just took too many years for them to gain huge rewards in the crypto market, they get from having just a few pennies (but also high amoung of bitcoins) and they did not listen to other soft people who told them that they are gonna “lose their pennies” and now they are millionaires!
The hype of the market
There are many hypes with crypto and that is the nature of money, money just brings hypes no matter in which form it is. but Why? That is because we are human and humans are contagious. We listen to each other in things we should not and because of that, we can see that most people simply don’t know what they are doing with crypto. Do you what happens to these guys?
Cryptocurrency prices are going to crash once you have started buying some. If you invest the loans that you take and or all your life savings then you put yourself in too much risk, and this is true especially if you do not have any prerequisite knowledge on the blockchain and cryptocurrency technology and crypto coins.
I am begging you! Please Be informed! Always do Ask the right people and arm yourself with enough knowledge before you get into the hype wagon of crypto. Being knowledgable can reduce your risk and most importantly position you in the list of long term investors of the technology.
Don’t be a victim to illogical exuberance; you just can get burnt almost very very easily if you don’t know what the hell you are doing.
Just search for it and you see that there are many and many opportunities to make a bunch of money in the cryptocurrency market, and you should be the patient guy and obtain the right knowledge and become wise before doing any investing.
Do not listen to the hypes and do not be the person who invests just based on the ongoing market hype. Do your own research first. If it is too complex for you, ask questions then look for the answers.
There are so many people in the cryptocurrency space who are willing to share their time to describe complicated things to other people and they are a great source of help. If you want help just ask! Go for it. If you want to co-invest with somebody else you should not trust every one too and you should surely make sure there are credibly and definitely verify those guys for credibility.
There is not even such a thing as earning potentially fixed returns when investing in cryptocurrencies. There are many scams and Ponzi schemes out there. Just don’t fall into the trap of them, these days they are becoming more and more prevalent in the market.
The Volatile Market
Bitcoin is of high volatile price and it is always changing, it is as volatile as hurricanes! In the November 2018, the price of one bitcoin was 6,461 dollars and if you happened to buy some bitcoin one year ago then you have lost so much money cause it was priced 20,000 dollars.
If it was the other way around you have won lots of money. Also, there was a time where is just 6 days bitcoin went down by 200% and that just shocked many people.
This volatility shows that investing in this market is not for everybody and you have to learn so much before doing any investing.
Cryptocurrency is based on technology and especially Distributed Computing technology, which in turn leaves investments to be open to many cyberattacks and problems.
Hacking is just a very serious risk, that is because since there are no ways that you can retrieve your lost or stolen cryptos. Many news reports are suggesting that many buyers are losing all their investments in exchanges and in the mining losses.
Exchange platforms are more likely to get hacked and that happens even if you are smart and have protected your wallet or use a hardware and full protected wallet. Additionally, if you own a wallet and you misplace or forget your key, there is almost no way to get your coins back and you have zero chance of retrieving your coins.
So please carefully do your research about cryptocurrency wallets and be sure you are using the most reliable wallet.
Frauds all over the crypto
We all talk about hacking but added to hacking, there is a large number so of fraud happening in the cryptocurrency industry.
Sellers and buyers are always looking for ways to trade their bitcoins online, but since crypto is very popular, there are many fake exchanges out there.
The Consumer Finance Protection and also the Securities and Exchange Commission have warned for a very long time against these kinds of transactions where naive investors are fooled out of their cryptos in fake exchange platforms.
This lack of security and confinement to rules creates a very big risk for all the investors. While there are many systems put into place to deal with these problems, security remains a big issue in this space.
Cryptocurrency and bitcoin are very young technologies and as with any new technology many things can happen and we can not predict (we can if we are knowledgeable and we look in the past and read the history) but people always fall into the traps of money.
Money is the root of all evil right? Well, no if you know what you are doing with the money and what you should be doing with it.
Get informed or the happenings make you informed.