What should you beware of in the crypto market?
What do you need to be careful about when investing in cryptocurrencies?
What do you need to be careful about when investing in cryptocurrencies?
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2 answers
Above all, naivety and greed. We have thousands of cryptocurrency projects and new ones are created every day. Among them there are those that were created from the beginning to obtain as many funds as possible, and after reaching the goal, they disappear as quickly as they were created. We also have some that will be abandoned by the developers or lose community interest, and investors will be left with worthless tokens. Some cryptocurrencies will be stolen by hackers due to security flaws, and the same applies to smaller exchanges (large ones return stolen cryptocurrencies from their own funds). We are not able to make only the right decisions, but prudence and caution will reduce the risk. If a project promises golden mountains, e.g. very high profits in a short time - be careful, research it and do not invest too much. If suddenly the community begins to be bombarded with information about a new, revolutionary coin that will conquer the market - proceed as above, because each development team promises a lot and few are actually able to deliver on their promises. If celebrities promote a cryptocurrency, you can be almost sure that they themselves have a large amount of it and want to raise the rate or have been paid for the promotion. This also applies to youtubers. If you get a message that forgotten bitcoins are waiting for you to pick them up or someone wants to multiply your funds, but first you need to send them to the address provided - do not click on any links and delete such messages. Nobody can make you two bitcoin, not even Vitalik. Finally, a very important thing: protect passwords and private keys (it is worth, for example, print them in several copies and hide them well, because lost passwords are unlikely to be recovered), never, under any circumstances, make them available at the request of unknown people, and preferably do not enter on wallets or exchanges from unreliable devices or download applications from unverified sources. You will never be sure that your smartphone or computer has not been hacked this way. If the cryptocurrencies are sent to a different address, the chances of their recovery are close to zero. In such a decentralized market there is usually no one to complain to.
Above all, naivety and greed. We have thousands of cryptocurrency projects and new ones are created every day. Among them there are those that were created from the beginning to obtain as many funds as possible, and after reaching the goal, they disappear as quickly as they were created. We also have some that will be abandoned by the developers or lose community interest, and investors will be left with worthless tokens. Some cryptocurrencies will be stolen by hackers due to security flaws, and the same applies to smaller exchanges (large ones return stolen cryptocurrencies from their own funds). We are not able to make only the right decisions, but prudence and caution will reduce the risk. If a project promises golden mountains, e.g. very high profits in a short time - be careful, research it and do not invest too much. If suddenly the community begins to be bombarded with information about a new, revolutionary coin that will conquer the market - proceed as above, because each development team promises a lot and few are actually able to deliver on their promises. If celebrities promote a cryptocurrency, you can be almost sure that they themselves have a large amount of it and want to raise the rate or have been paid for the promotion. This also applies to youtubers. If you get a message that forgotten bitcoins are waiting for you to pick them up or someone wants to multiply your funds, but first you need to send them to the address provided - do not click on any links and delete such messages. Nobody can make you two bitcoin, not even Vitalik. Finally, a very important thing: protect passwords and private keys (it is worth, for example, print them in several copies and hide them well, because lost passwords are unlikely to be recovered), never, under any circumstances, make them available at the request of unknown people, and preferably do not enter on wallets or exchanges from unreliable devices or download applications from unverified sources. You will never be sure that your smartphone or computer has not been hacked this way. If the cryptocurrencies are sent to a different address, the chances of their recovery are close to zero. In such a decentralized market there is usually no one to complain to.
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