Topic: Basic common sense advice for new people buying coins. - page 2. (Read 1715 times)
Nice list of advice OP, highly recommended to all noobs out there.
Good advice so far, and I don't have anything brilliant to add. I'm of the mind that there's absolutely no reason to own 99.99% of the shitcoins that are on the market. My advice would be to check your motive in buying. If it's to make a buck, then that's probably the same reason the next guy has for buying whatever coin you're considering, and you're just looking to unload the shitcoin on the next sucker that comes along. Very very few coins have a reason to exist. They're not going to be used as currency ever, and probably won't survive long enough to be useful as a store of value..
Very good advised this should be made sticky have you lost money from this scam coin you are good at giving advice or does this one comes from e-books or from other experience
Add any advice you want.
There probably are a lot of threads like this and I'll link them if anybody posts.
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added
https://www.coingecko.com/en
https://coinmarketcap.com/currencies/views/all/
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1) Always be wary of premines and ico's
The spirit of the crypto economy, for people who 'get it', is the creation of currencies that are able to perform functions, rather than simply enrich a few gangsters. There is no currency that genuinely "needs" an ico or premine. That's just the truth. There are a million and one excuses why an ico or premine "is necessary in this case", but the truth is that an actual good idea does not need a specific person or group to collect funds on its behalf.
2) If somebody wants to sell you a premined or ico coin then at least know who they are.
Coin after coin comes up with an anonymous dev asking for, and getting, vast bucketloads of cash just because he or she has an extraordinary gift for bullshitting people. Anybody can say they want money for a project. If they want your money but do not want you to know who they are, why would you guess that is?
3) A coin that is emitted very fast is usually made so that a few people can get all the coins then pump it up.
If more than half of a coin's total supply is produced within a few months it usually means the maker of the coin is going to accumulate most of the coins, then pump the price up and unload. If a coin is emitted very quickly and also contains a nonsensical "0 reward" phase in the beginning "to prevent instamine" then the scammer is specifically targeting the truly simple people.
4) Most garbage coins have pump crews.
If you go to the thread of an honest coin you will not see an endless string of people saying "This coin is the best since bitcoin." When you see hype it is usually because the coin needs it.
5) Estimate the value of a coin by it's market capitalization (the combined value of all its coins) rather than the price of one coin.
Most people go to sites like Coinmarketcap.com and look at the market capitalization of a coin to decide if it is cheap or expensive. The price of one coin is meaningless.
6) It is very common for people to be stuck with a worthless coin then try to convince new people to buy it by shining it up a little.
When a coin is abandoned, or found out to be a scam, there are people left holding the worthless coins. Often times these people will announce that they are reviving the coin but usually the revival lasts only as long as it takes them to unload their coins.
7) A genuine currency is first a currency, then a tool for speculators.
Most coins that exist now are made for speculators. In other words they are not actual "currencies". A tiny few coins are being used non commercially by people who genuinely enjoy them. These coins are very cheap right now but will still be around far into the future. Other coins were created only for miners and speculators, then had a bunch of "features" hammered into them to make it look like "somebody should be interested in this". Those coins are super expensive now but will probably not exist in a few years.
Be wary of "known experts" who whore out their reputations to pump premined or ico coins
This is a rapidly expanding economy with millions of pesos/dollars/rubles/yuan easily available for any publicly recognized "expert" who is willing to sell out for cash.
If you are a new person to crypto then you probably will be scammed several times before you get a sense of how much scum there is. Always diversify. Never put more then 1/3 of your investable money in any coin, but especially not in a "sure thing". Almost all of the activity in coins right now is speculative, almost no actual economy exists. So valuations are based on hypotheticals that in many cases are manipulated to serve whoever is promoting a coin.
If you don't understand something about a coin then ask until you understand. In almost all cases where people are scammed, it is because they trust others to understand things for them, to do their thinking for them.
There probably are a lot of threads like this and I'll link them if anybody posts.
~~~~~
added
https://www.coingecko.com/en
https://coinmarketcap.com/currencies/views/all/
... I'm of the mind that there's absolutely no reason to own 99.99% of the shitcoins that are on the market. My advice would be to check your motive in buying. If it's to make a buck, then that's probably the same reason the next guy has for buying whatever coin you're considering, and you're just looking to unload the shitcoin on the next sucker that comes along. Very very few coins have a reason to exist. They're not going to be used as currency ever, and probably won't survive long enough to be useful as a store of value..
~~~~~
1) Always be wary of premines and ico's
The spirit of the crypto economy, for people who 'get it', is the creation of currencies that are able to perform functions, rather than simply enrich a few gangsters. There is no currency that genuinely "needs" an ico or premine. That's just the truth. There are a million and one excuses why an ico or premine "is necessary in this case", but the truth is that an actual good idea does not need a specific person or group to collect funds on its behalf.
2) If somebody wants to sell you a premined or ico coin then at least know who they are.
Coin after coin comes up with an anonymous dev asking for, and getting, vast bucketloads of cash just because he or she has an extraordinary gift for bullshitting people. Anybody can say they want money for a project. If they want your money but do not want you to know who they are, why would you guess that is?
3) A coin that is emitted very fast is usually made so that a few people can get all the coins then pump it up.
If more than half of a coin's total supply is produced within a few months it usually means the maker of the coin is going to accumulate most of the coins, then pump the price up and unload. If a coin is emitted very quickly and also contains a nonsensical "0 reward" phase in the beginning "to prevent instamine" then the scammer is specifically targeting the truly simple people.
4) Most garbage coins have pump crews.
If you go to the thread of an honest coin you will not see an endless string of people saying "This coin is the best since bitcoin." When you see hype it is usually because the coin needs it.
5) Estimate the value of a coin by it's market capitalization (the combined value of all its coins) rather than the price of one coin.
Most people go to sites like Coinmarketcap.com and look at the market capitalization of a coin to decide if it is cheap or expensive. The price of one coin is meaningless.
6) It is very common for people to be stuck with a worthless coin then try to convince new people to buy it by shining it up a little.
When a coin is abandoned, or found out to be a scam, there are people left holding the worthless coins. Often times these people will announce that they are reviving the coin but usually the revival lasts only as long as it takes them to unload their coins.
7) A genuine currency is first a currency, then a tool for speculators.
Most coins that exist now are made for speculators. In other words they are not actual "currencies". A tiny few coins are being used non commercially by people who genuinely enjoy them. These coins are very cheap right now but will still be around far into the future. Other coins were created only for miners and speculators, then had a bunch of "features" hammered into them to make it look like "somebody should be interested in this". Those coins are super expensive now but will probably not exist in a few years.
Be wary of "known experts" who whore out their reputations to pump premined or ico coinsThis is a rapidly expanding economy with millions of pesos/dollars/rubles/yuan easily available for any publicly recognized "expert" who is willing to sell out for cash.
If you are a new person to crypto then you probably will be scammed several times before you get a sense of how much scum there is. Always diversify. Never put more then 1/3 of your investable money in any coin, but especially not in a "sure thing". Almost all of the activity in coins right now is speculative, almost no actual economy exists. So valuations are based on hypotheticals that in many cases are manipulated to serve whoever is promoting a coin.
If you don't understand something about a coin then ask until you understand. In almost all cases where people are scammed, it is because they trust others to understand things for them, to do their thinking for them.
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