Are you thinking about buying Bitcoin? joining some cryptocurrency opportunity? or even learning how to day trade coins? Hold that thought –there are a few things you need to know before you spend a penny in this industry.
Unlike the traditional financial and commercial space where you often have a safety net or customer support agent, you can call if you are a victim of fraud. If you make a mistake with crypto, the money is gone forever unless you can convince the criminal who tricked you in the first place to give you your money back.
Some call this the dangerous wild west while others call it control of their own money and financial freedom. Technically it’s a little bit of both at the moment.
Who oversees the crypto space?
Without this industry being regulated, no mediator can jump in at the last minute to save the day, which creates a vast opportunity for scammers to take advantage of this perfect moment when there is almost zero authority or oversight.
Although the regulators are becoming wiser and learning how to adapt and play in this environment, while still allowing innovation and creativity, there are several scams; almost all beginners fall victim. We want to help you avoid this trap altogether.
We believe the best way to navigate the cryptocurrency space is to learn the Bitcoin and blockchain basics. If you understand how the technology operates, you can learn to identify projects with substance vs. complete scams.
No matter what industry you’re in, there will always be large-scaled attempts to part you with your money.
Does the coin trade on a major exchange and has a valid blockchain?
Arguably the fastest way to identify the legitimacy of a project is to consider researching before spending a penny or participating in a coin project.
The blockchain is a permanent record of all transactions that have taken place. To the untrained eye, someone not properly trained could be fooled with an excel spreadsheet if they didn’t know what they were looking at.
Who is the management or team responsible? What is their track record and history of success
How visible is the team, and what does their resume look like? Can you verify the executive board and management team? Do they have active social media, and do they participate in live conferences and meetings? Since you have many choices on where to put your money, you might select a group of crypto enthusiasts who are actively engaged in the community and working on delivering solutions to improve the space overall.
You can take it a step further and start looking in crypto forums and sites like Reddit, where there is usually a discussion happening, and people are expressing their opinions. Once you do your research, you can weigh the information you find and decide if it’s worth investing in or not.
What is the plan or objective for the overall Project?
Usually hard for new people to judge, but not all projects are equal. Just like companies on the stock market, there are different purposes in different industries, and not all corporations trading on the stock market are performing at optimal or preferred valuations. The same goes for crypto.
First, you need to understand the essential functions of a blockchain and crypto company before researching and dissecting who the winners in the space are.
Although, this won’t come overnight –learning how to research projects can help you spot potential top performers and give you the ultimate leverage you need to be successful in the crypto space.
You will find the outstanding companies have their noses down and are always working behind the scenes to perfect their technology. The loud and vocal companies that are still working on pushing up the price are the projects you need to be leary of.
The people I frequently network within this space believe that companies who are focusing on logical solutions that vastly improve the technologies and efficiencies of today will be the leaders in the crypto space in the future.
Zero guarantee or income promises
This is mainly directed to those who are dipping their toe in the water; countless people get hurt and financially ruined every day because they fall for something too good to be true.
As the cryptocurrency market cap continues to increase, more opportunities will pop up that usually have a short shelf life. The problem with most of these opportunities is there is no substance or real goals. It’s generally about making as much money as fast as possible, and in the end, they all disappear once the hype of the project and all the income claims die down.
(This means multipliers, duplicators and the promises of life-changing, revolutionary technology with the hopes of making you rich) The reality is –crypto technology itself is game-changing, and you don’t need some pushy salesperson to get you into any programs that probably won’t be around next year. You can accumulate legit coins yourself with enormous potential and don’t need to risk your reputation by sharing a scam with someone.
What’s happening with the price?
Reading the market and knowing when to jump in is crucial to your long-term success as a cryptocurrency investor. This is where we see even successful traders make mistakes, mistiming the markets, and letting their emotions get the best of them.
Even the best projects in the world have volatile markets, and you need to gauge and spot the right time to enter. Most people like to buy when the price has already gone up, and everybody is super optimistic, but I can tell you from experience most traders lose money that way.
The problem is, the wrong projects, there is no right time to buy-in. You could make money, but you might get in trouble for receiving funds from an illegal operation. This is why we always suggest you only stick with coins trading on major exchanges and have a history of price movement.
There is no perfect time to buy, but the reality is that you should be buying at the very bottom of the market when people are fearful, and it seems crazy to enter the market. It might take longer for the tides to rise, and the profits increase, but you have positioned yourself for much higher gains when you learn to time the market out. This is one of the more difficult things for new traders to do. It’s straightforward to let your emotions take the wheel and make the decisions that usually end up losing.
It doesn’t matter what industry you are in,crypto, stocks, or real estate; you always do best when you buy at the bottom of the market.
It’s a sad reality that people get scammed every day, and crypto is so new and foreign to people that it’s easy to trick someone who doesn’t know what they are doing. After seeing personal friends, family, and colleagues get burnt to do the last bull run in 2017, I can only imagine the scammers are more prepared and smarter on how to dupe unsuspecting crypto beginners.
Keep your head on a swivel when it comes to crypto presentations and life-changing bitcoin/blockchain opportunities. The best things we found so far are real projects with real use cases, and the prices have been significantly suppressed over the last few years. We aren’t financial investors or giving business advice, but if we were in your shoes, now is the time we would start getting into crypto, while the markets and people are fearful and uncertain. That is when the most substantial gains will be made.