Investing in the cryptocurrency market could change your life forever. However, if you're not careful, it has the power to destroy it financially as well.
You likely heard the stories of people seemingly becoming rich overnight in this market, and that is probably why you first became interested in crypto. Wanting to have the same luck and fortune as those other people. We have gotten so dragged down in everyday life trying to finally escape the financial rat race. For most, the thought of retiring or becoming financially free seems like an impossibility when they are so deep in debt. There is a famous study that showed that most people in the US wouldn't have enough money to cover a surprise expense of just a few hundred dollars.
People are desperate to escape that lifestyle and many view crypto as their best chance to make it happen.
After all, crypto influencers have been declaring that Bitcoin, Ethereum, and crypto will cause the largest transfer of wealth that the world has ever seen. That people who invest today will be greatly rewarded in the future.
All of this could happen, but here is where the danger begins to come in.
The truth is that a majority of the people who enter the cryptocurrency market have next to no knowledge about it.
This makes them an easy target.
For example, think about the times that you don't know something and need to look up the information or advice. What is the first place that you check?
The answer is that most people will check YouTube, or X (Twitter) to see if they can find the answer or information.
The problem is that this isn't like learning to put on a tie for the first time, cooking a new recipe, or doing some DIY in your house. Crypto is a financial market where everyone is trying to make as much money as possible. There is danger lurking all around you, especially when it comes to YouTube and X.
The truth is that these people have their own ulterior motives. Both of these platforms allow content creators to monetize their content. It could be by views, sponsorships, or being paid to shill new crypto coins to viewers. During the last cycle, there were an endless amount of influencers who were given a large amount of a low-cap altcoin to shill. Them talking about that said project caused the price to soar, and they would dump their coins soon after.
This was a common story last cycle that resulted in users losing large amounts of money.
The longer that you are in the cryptocurrency market, the more easily you can differentiate the high-quality projects, from the junk. And you are also to distinguish who is just a salesman and using you to make money. Newcomers to this market don't have this skill, and consider people on YouTube or Twitter experts. Believing they truly care about you and want you to become rich. They couldn't be more wrong.
The moral of the story in crypto is that you shouldn't trust anyone. Not the people you see on YouTube, Twitter, TikTok, or even crypto-related articles like mine. Your first cycle of investing in crypto needs to be dedicated to learning as much as you can.
The famous phrase that knowledge is power directly applies to this industry. Once you have the knowledge to invest in the high-quality projects that will be around for the long term. That is when you are ready to become successful in this market. Until then, you are in danger and need to use extreme caution.
How about you? Have you ever fallen for something that a crypto influencer shilled?
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As always, thank you for reading!