1. Not a short-cut to become rich overnight
People enter into cryptomarkets with the expectation of becoming rich overnight. Though all those stories about Bitcoin, Ethereum are true but recognizing such projects in the pool requires great diligence on the part of the investors.
New investors tend to become frustrated when they don’t see quick returns. They resort to unexperienced trading and end up losing a fortune.
2. Not everything that glitters is gold
Everyday you’ll see at least 5-6 coins surging 100% in 24hour price . In such situations, many gets driven away by the greed to invest in these coins.
In Crypto-sphere we call such coins as Pump & Dump coins, in most of the cases these coins falls much more than their original value in few hours / days, largely manipulated by whales.
Not always every coin that surge 100% in value is pump & dump, there might be some coins those are gaining in value because of their fundamentals , investors have to stay updated of all the happenings.
But , Who are whales? Read on
3. Beware of Whales
Whales are large investors who can manipulate the markets with their finances. They are the major originators of pump & dump of coins.
Legends say there are telegram , slack channels where whales announce these pump and dumps in advance , we believe the legends , but the amount of scams in these channels are enormous.
4. Invest only what you could afford to lose
No matter how attractive any market is, Stocks or Crypto, Only invest the amount which you could afford to lose.
With great returns, comes great risk in crypto-sphere. The future of these markets depends on the acceptability of these coins by the masses and most importantly, the governments.
5. Brag once you pack your bags
You’ll find people bragging about a coin on social media channels. Word of mouth is a dangerous weapon of communication in crypto-sphere. People will always try to sell you coins which they own to drive its demand. It is advised not to follow social media blindly.
6. Defame when you want more
Also, you’ll find people spreading rumours and fake news on social media platforms to drive down the price of a coin to buy more and add to their bags at a cheap price. Weak hands and new investors often fall in these traps.
7. ICO – A bubble?
2017 saw a huge spike in number of ICO as a means of raising funds for a project. ICO refers to the Initial Coin Offering, just like Initial Public Offering, it help projects to get the required funds, but unlike IPO’s, ICO’s are highly un-regulated and is not supervised by any authority.
Number of Scam ICO’s has increased manifold over time leading to fraud of millions of dollars and personal wealth.
Chinese Government and U.S.A has prohibited ICO funding to minimize these frauds.
Not all ICO’s are scam. It requires you to perform due diligence before investing.
You can read tips of investing in an ICO – Click Here
8. Do your own research (DYOR)
DO YOUR OWN RESEARCH – This is probably the most importance advice any one can give you over the social media. Cryptomarkets don’t function like Stock markets. Not everything you read here is true.
It’s always better for new investors to analyse and learn the functioning of the market for about a month or two at least before staking their hard earned money.
“The potential of Crypto-sphere is beyond imagination. We just need the right path to begin with”