Topic: Advice on how best to protect your capital - page 6. (Read 1168 times)

I summed up all your post as to educate yourself first, this is not something that you are going to pay a firm just to take care of your business, as they do in the stock market, you are your own bank, even experts can give you a precise prediction on how to make a good decision, you have to do it for yourself, they can only present, but it always comes down to you.

Research before investing. I agree with the author, in crypto when you are a newbie is best to think that everyone is trying to steal your money. It'd make an individual more cautious and smart.

Read. Read. Read.

Read good books on money management, especially microeconomics. Don't follow follow people's opinions, follow your guts.

The Boglehead 3 fund portfolio has been going around for years - https://twocents.lifehacker.com/simplify-your-investments-with-the-3-fund-portfolio-1831746735
Basic protection would be diversified into 3 sectors + cryptocurrency for fun/speculation

Diversifying your portfolio is a good idea if your plan is to buy stocks, bonds, gold or real estate, but if you are planning to buy a cryptocurrency other than bitcoin then you are asking for trouble especially if you buy a coin outside the top 20.

Now when it comes to securing our coins, securing our computer should be one of our top priorities but unfortunately it is almost impossible to do this with any Windows OS, so you will have to install one of the many Linux distributions and while your security will improve significantly there is no doubt that you will miss some of the functionality that Windows provides.

Maybe you could check the reviews online also the the same time some countries are allowing you to see the whole profile of a company or a person and locate them through KYC , therefore it is something that could be helpful when you have to decide which is a scam and which isn't.
At times like these KYC is very helpful and at last we can always rely on the public reviews I think.
For better or worse , the more you search online about it the cleared it will get .

It's unfortunate, but that's the best advice anybody could give when it comes to ICOs.  The reason these scammy projects keep getting suckers' money is that those suckers think they're going to get rich and will miss out on a gold mine if they don't invest--so they're impatient and can't wait until a project proves itself to be legitimate before handing over their money.  At least that's the way I view it.

My advice would be to just ignore that whole space entirely.  I've never invested in an ICO and never will.  The only thing I see are a bunch of scam accusations against these idiots, mostly for plagiarized whitepapers and so forth.  Never have I heard that one of these projects has some sort of breakthrough technology that's been adopted by....anyone.  If someone knows of an ICO that actually fulfilled their hype and all their claims, please let me know.

Not only digitial assets, but various non-digital assets in general.  It's hard to believe that some people only have cryptocurrency in their portfolios.  Those folks are risking everything on something that could bankrupt them in the long term.

I agree! Additionally we also need to diversify our portfolio with different digital assets to minimize risks and I think the OP has forgotten to  discuss the importance of keeping our computer systems safe or in other words, don't let your system be compromised or be hacked, that I think is one of the important way to protect your capital instead of focusing on the integrity of projects alone. Imho.

You missed to say that patience is the key to everything. Its not applicable only in trading but if you have patience, more opportunity awaits. If you notice for examole a project which opens with a good offer, you shouldnt fall on it at once. You should have patience to dig more information about it so that you can prevent losses from falling into scams or unproductive projects.

Too much patience do sometimes have disadvantages but it depends if the said project is really worth for the wait or just simply skip it out.

Best thing to protect your capital is DYOR and a very strict risk management when it comes to investment,with this you can eventually do all sorts of things that
must be done before proceeding.

Though I agree mostly with what you have said and you already mentioned the key to avoid these scams and that is through the known strategy of DYOR.

Doing your research with due diligence will save from everything. You don't have to skeptical with everything, you just have to be knowledgeable and fully aware of the potential scam schemes and attempts that are existing today.

I think what newbies experience are the hope of the easy money that you could get. Imagine that you can invest worth 0.01 BTC and turn it into 1 BTC. That's already a thousand in percentages in gains. That's a lot if you think about it. Most of the time, when a person wants something easy, it's quickly gone too. There are times when you need to be skeptical and somewhat be open-minded. If it doesn't seem to make sense, then it's time to be suspicious. You should never get into something you don't fully understand.

The influence of those Telegram influencers is so great tbh, even though sometimes they just repost what a project has stated on their whitepaper and never do any in-depth analysis. At this moment, I think most of them are just marketing tools for projects. A project with money will use them, while those who don't have any money or those who focus on product development won't use them at all.

If you look at the recent IEO or ICO, you'll probably notice how a majority of those high-ranked projects will get pumped at the early stage, got a little dump, do another run and then slowly falling and find it's bottom.

Being a skeptical person won't be in great risk of losing your cryptocurrency that you stored.

It's the same as investigate what you didn't know about a certain things that has been introduced to you and you didn't know anything about it. In short, do your own research and investigate at what you are trying to do or what you are getting into.

Yes, it's true that some project are successful but still there are successful project that are doing something shady that you won't even know until someone will become a victim or someone complaining to a project. Some projects are even abandoned because their project is not a long term project.

Ideas from "experts" or "influencers" are the same as reading a review about a gambling site that someone recommended a site to you and saying that it is what they have to say about it, so whatever experts will have to say about what they recommend is that it is their opinion r how they think about it. Basically, you will do what you did in the first place which is to do a research.

Portfolio will help you track at what you did in your investments if you have invested in bitcoin to earn and it is what you have mentioned because there are scams or fraud attempts going on in crypto space.

Thank you for the advice. Indeed being always skeptical is a must since 99% of ICOs are absolute garbage according to this man here and it has been proven that 80% are scam. I advise to always look at this helpful site which inform you about this kind of project and to look carefully at the project team because many of them use fake stock images.

Over the past couple of months, cryptocurrency returned marginally back to the good times. This affects almost every sector of this space. Forum activity increases, as people get more interested, up starts try to take advantage of the surge to launch their projects, and scams also increases as Bitcoin ans cryptocurrency becomes a more frequent discussion across social medias, and the target is usually newbies.

If you are new to this, or joined because of the hype, one thing to note is that there are different levels of scams and it's not always easily detectable.
So view every prospect as a scam, until proven otherwise.
It's easy to avoid basic scam attempts like the use of fake accounts or ICO imitations. But, there can be scams hidden beneath legitimate projects.

- Always be skeptical; do not trust a project on first glance. Always look for a hidden threat, by assuming there is one, this makes you dig further into the fundamentals of that project.
- The fact that the project has been successful so far, does not mean it can not still be a hoax; never get too comfortable when you've out your money in an investment. Always be on the lookout for developments and stay close to the process involved.
- Never fully rely on recommendations; always to your own diligent research on any prospect. Do not simply follow the ideas of "experts" or "influencers".
- There is no guarantee;  no investment is a hundred percent fool proof. Even Bitcoin which I would say is the safest cryptocurrency investment does not guarantee profits.
Always keep tabs on your portfolio.