Topic: Why Crypto may go wrong for some people - page 7. (Read 937 times)

Crypto is not a get-rich scheme and Crypto might not be for everyone. Maybe your friend got a bad orientation and put more than he could afford to lose not in Bitcoin, ETH or a high-cap token but in a shitcoin. He took a huge risk without doing enough research. Risks are good in crypto but only well-thought-out ones seem to pan out well in crypto in the long run. The same way shitcoins can give insane gains is the same way they can take it all back and even take a huge chunk out of your capital that's why caution needs to be applied at all times and why the phrase "Do your own research" and Due Diligence is really popular around here.

What almost causes instant losses in the cryptocurrency industry is the eagerness of someone who wants to make it easily in the crypto sector. Due to their eagerness to make quick money, they became blind and invested in any project that was pumping at that particular time or the project they see some set of people are investing the period that time without conduct their own research.

When your friend just went ahead and invested in shitcoin, what did he expect? I may say that maybe your friend thinks it can make it easy from the token, as some people are saying that the easiest way to make money in the crypto industry is through altcoins. That may be true, but know that altcoins are just a form of gambling, and the risk is always high. If someone takes his or her time to study cryptocurrency, they will easily understand that Bitcoin is the best crypto investment worth making.

But let us know that knowledge is the key to success in any aspect of life, especially business or investment; proper knowledge always needs to point us in the right direction and always help us minimize our risk, especially in the cryptocurrency industry.

I am always interested in the thinking of people who think that it is enough to simply increase capital if you invest a certain amount in the development of a project. Do these people consider themselves smarter or more cunning than everyone else? If it were all that easy, we'd probably all be millionaires by now. In the same way, it is surprising that a person who has a decent amount, without understanding the product, blindly trusts him. Doesn't his money come to him hard? There are thousands of questions, but as long as such naive people exist, scammers will develop their scams. I don't feel sorry for those investors; there should always be a rule: check a hundred times and trust once.

But people have different mindset when it comes to crypto. And worst of it is that those who come to crypto these days have no knowledge or experience in investing, as they only have greed towards quick profits. And greed will eventually lead to a failure investment. However, for some responsible investors, they chose to educate theirselves first before they enter crypto long term investing. And they profit not because of greed, but because of their determination and endurance to succeed in the end.

You friend conclusion on his first cryptocurrency attempt of it being gambling is RIGHT,  because he invested in a shitcoin/token because most of the token are either failed projects or pump and dumped.


Because most of the token are dumped by the project team on investors making them to record almost 100% lose just like losing a bet in gambling.
Yes knowledge is the first foundation to understanding what cryptocurrency is and how to go about it investment and manage the risk associated with if, because without knowledge,  one can take a scam investment to be cryptocurrency investment mean while it a scam.


Jus like the various Ponzi scams that parade themselves as cryptocurrency investments.


There is no free lunch anywhere and for one to be able to guide himself from all the risk and mistakes that are involved in cryptocurrency investments,  then there is a need for continuous learning and building of new knowledge and skills.

Anything isn't for lazy people, not only crypto.

When someone is lazy and don't want to learn before making the next move, they have a high chance for making a wrong step rather than the experienced and someone who already learn a lot.

I see your friend character is someone who give up after making a wrong decision, even though crypto isn't gambling, but let him alone with his decision. Such kind people will always regret what he have done and not want to learn.

Your friend has to understand that every investment is like a gamble. You'll have no idea how it's going to perform and that's why it's best to stick to the best in the market. I'll take a guess that he has invested to shitcoins and meme coins and that's why he's like cursing the market now because it didn't do any good to him. Tell your conclusion to your friend so that he'll realize that he's not just going to sway wherever the crowd is going and just like with the craze of meme coins, he won't be the one to ride the hype because it's proven that they don't last long.

What is perhaps the most important thing in this story is that you cannot lose thousands of $ if you do not have them, and your friend, like many others, obviously does not have this problem. I have met many people who wanted to invest in cryptocurrencies, but luckily for them they never had enough money for a serious investment, and considering all the projects they had in mind that failed, everything turned out great for them.

What I want to say is that some people learn the easy way, and some the hard way, and some people are just lucky at a certain moment and don't make a wrong step. Those who are aware of the risks of such investments should warn others whenever possible, and sometimes even banks that block clients from investing in cryptocurrencies make sense, because they actually save many naive clients from losing their money.

If what you want is an easy money then you definitely get lazy if youre experience a loss in crypto. The best example of this is your friend. I bet he bought during the bull market when all the tokens and coins are pumping expecting to make some profits but when the market turns bad and go bear he curse it due to a very big loss. I myself got caught with that and have some down fall now. But thats because we dont know what will be the outcome of the market. If you sell at a loss definitely youll curse it.

It's obvious that your friend lacks know on crypto currency and it works. For comparing crypto with gambling justifies that he invested blindly without seeking proper knowledge necessary before venturing into crypto investment. I feel sorry for him but that is what you get when you invest in Shitcoins. That thousand of dollars will actually acquire your friend a reasonable portion of bitcoin which with time will fetch your friend a convincing profit.

Remember, gambling is not an investment and should not be considered as one. It should not be an option for your friend after he thinks crypto failed him due to his own negligence to research before investing. If crypto seems to not work for him, he should attempts to invest in physical properties like real estate, gold and some countless other investments.

Why did your friend invest in other tokens to have so many reliable coins in cryptocurrency? It means that your friend has very little knowledge about investments. How did he invest with this little knowledge? Since you are already familiar with cryptocurrencies, your friend should have discussed the investment with you before investing. You would have given him no wrong advice and you would have advised him to avoid investing in other's tokens and invest in reliable coins that are available in the market. In this case, the safest platform for your friend to invest in is Bitcoin. If your friend had invested in Bitcoin he would have never lost his money and would have made a good amount of money today if he had invested at the time you mentioned.

Your friend made the wrong decision for himself, and how did he get to know about cryptocurrency that led him to invest without having the basic knowledge of where he was putting his money? I think even in real business where you invest in somewhere like a shop, buying goods to keep, and other things require knowledge before starting, so I'm really surprised when your friend invested in cryptocurrency without the knowledge.

However, even the bitcoin we advise people to invest in doesn't guarantee them that they should just go ahead and invest; they must have knowledge about it before investing. But he went and invested in shitcoins. He is not blaming himself for the mistake he made now that the market isn't moving the way he wanted it to, and instead, he is talking about quiting. I quiting will be better for him because he is not yet prepared to learn how the cryptocurrency market operates, he may comeback when his ready to do the real investment in order to learn.

The basic mistake your friend made was investing in tokens instead of coins that have proven to be good assets.
Since the advent of ICO, IEOs and NFT projects many people have been disappointed because they ended up no longer having a price. Since the shift in the trend of ICO, IEO and now NFT projects, Bitcoin is still an investment asset that does not make investors complain about losing money.

Direct people who previously invested in tokens and shitcoins to switch to Bitcoin if you don't want to experience what your friend experienced.

Investing in Bitcoin is a smart investment for people who want to invest in crypto.
What counts in the cryptocurrency world is not cryptos like tokens and shitcoins generated from obscure projects but BTC.
The more BTC you have the more it makes many people smile happily.

Well, although it is easier to happen with shitcoins, it can also happen with Bitcoin for those who have the wrong mindset. Of gambler, as we are talking about.

He is the typical one who will tell you that Bitcoin is a ponzi scheme, but next cycle, when the price goes over $100K he will be attracted. He'll see Youtubers say we'll hit $1M in another cycle or two, and when the price goes parabolic, approaching $200K, then he'll buy. And when the price goes down, instead of holding until the next cycle, he will sell at a loss out of panic because he will believe the price is going to 0.

Many of today's Bitcoin haters followed that pattern in the past. And instead of recognizing their mistake and buying Bitcoin now, they secretly wish the price would go to 0 to be right.

My guess is that your friend probably went to invest in a project that offered him some good-to-be-true returns and that's what made him invest in it.

As a newbie who just got into crypto, it would be a stupid decision to start your journey with altcoins, first and foremost acquire some bitcoin. Yeah, we all know that Bitcoin won't make you rich overnight but still buy some and keep if you want to buy any altcoin make sure you don't go for any shitcoin you could buy some ETH and some other solid altcoins, your main aim should be for you to learn how everything works before you can start doing intense research on the project to spot the one that will give you a good return.

If you just come into the crypto space because you saw someone invested in a project and was lucky enough to make a profit from it and you thought of investing in some shitty project just because they also promised the same thing the lucky project promised you'll only end up investing your money in a rug pull project.


However, seeking counsel from others is not a bad idea. Let's say that after investing in that project that resulted in his loss, if he returns to the same person who directed him to that project, the only thing he'll receive from that person is a bit of consolation, and if care is not taken, he might direct him to another project, and he might even further explain why the previous project didn't favour him in order to convince him even more.

I know how that feels to lose thousands of dollars investing into one project because I also did that mistake just a few years ago.

I will not say the particular project, but I invested IIRC around $2000 or even more on it. It's not a scam token though because it's still running, but I lost a huge amount of money on that project. Do I see crypto investing as gambling? Not at all because in investing, what you need is knowledge, and of course capital as well. Gambling only requires luck, and a bit of knowledge about the game, but I can't say that investing into crypto is gambling. Maybe it's a gamble for those newbie investors who lost a huge amount of money like your friend.

Crypto isn't for lazy people? I'm lazy so it's not for me then.

Kidding aside, I'm really a lazy person, but I found myself successful most of the time in crypto investing. Maybe the only mistake that I did was the one I shared, but all of my decisions are correct most of the time. Yes I did some research as well, but what I focused on investing my money with is the coins that has been there for long time already meaning the top coins are the ones that I'm investing. TBH, I'm lazy enough to not spend many time researching blah blah though I watch some videos at my free time.

How did he invest his money in that token?

Who is a person introduced him to invest in that token? He should complain with that person, not with you.

With his response, I believe he did not know anything about this market, about that token before investing. With such empty knowledge but very greedy minds, he gambled but this market is not a gambling casino.

They heard of quick rich stories and want to get rich quickly. Because they heard stories of getting rich quickly and easily with cryptocurrency, they joined market with belief that they will get rich in a same way. I don't want to see they have loss but if they got loss, they deserve it.

this is his mistake, he invests in tokens most likely he does not know how the project from which the token came is running. invest only in Bitcoin. just focus on Bitcoin and you will benefit. not a scam thinking that makes you worry.
there are so many aspects that make the token eventually decrease in value and eventually go down. therefore it is too risky for anyone to hold altcoins or tokens for long periods.

This is what i always hear from people complaining about loosing money to crypto but there is only few mistake why they lose money

• First is what you just have said being lazy - when they first heard of crypto they are excited they just pour the money and expect it tobe a millionaire
• Lack of study or reading things about what they are doing - you just don't cast a rod and expect a tuna immediately, you need to work hard and do some sleepless night
• Investing everything on things they knew is too good to be true, lots of my friends did this then blame crypto to be a scam

This is why I always remind my friends when they invest it to crypto, expect the worse i don't sugarcoat it, always giving them the negative side, if they knew the risk they will eventually have to study, before they invest on things.

Crypto essentially does 2 things:
Profits: passively
Benefits: Actively

And the average person seeks the effectiveness of the above options that in their expectations have the potential to make them rich whether that makes sense or not. Of course you can guess that investing for profit will be the choice of the majority based on their instincts, people prefer to earn only by speculation which then they will conclude that crypto is a gamble when they fail. Meanwhile, to feel the benefits of crypto requires active efforts as normal people want to earn money.