According to Wikipedia “Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.” It does not exist in physical form and it’s not issued by the central bank, unlike the traditional currency.
There has been an increase in the number of investors and traders in the Crypto Market. Different investors have different positive expectations on how their Crypto holdings will yield a lot of profits. But the shocking reality is that not all of your Crypto holdings will yield to your expectation. I know you have seen tweets from different Traders or Investors explaining how a particular coin or token they bought surpasses their expectations greatly. Some of us have come across tweets like this but what you don’t know about these success stories is that some of them are pure luck and some are pure hard work and proper research.
The expectations of most traders and Investors are most time unrealistic. As an investor, you need to understand the risks involved when investing in any Cryptocurrency. No matter how small the money you are investing is, You need to do more detailed research about Cryptocurrency before investing. It is of utmost importance to understand and research any cryptocurrency you are about to buy. Doing your research before buying a Cryptocurrency is to your benefit.
I have seen quite a several gamblers who identify as Traders trying to turn their $1000 investment into a $ 1 million overnight which is an unhealthy expectation, and when they eventually lose all their capital they will start wailing that “Crypto is a scam”. Although turning $1000 to $ 1 million is possible in crypto. We have seen a lot of crypto projects like Shiba Inu, Doge, and even BTC turned a lot of people into Millionaires. And We have also seen a lot of people who lost the money they made back to the market. My tutor would always say “Trading is not a 100m sprint, It is like a marathon, so treat it like one.”
The truth is you are most times focused on those sweet headlines you come across about people who invested $100 in crypto today and became a Millionaire the next day. These sweet headlines heighten your expectations and make you blind to the reality that same way some people are tripling their capital is the same way some people are losing it.
The number one expectation that most people have concerning crypto is that they think Crypto is a get-rich-quick scheme so they expect High results from the Crypto they buy The reality is that Crypto is not a get-rich-quick scheme and the higher the profit, The higher the risk. “The more you trade the more you can make, The more you trade the more you can lose”
Another expectation is that Most people believe that the Crypto market is more predictable and cannot be manipulated but the Reality is that the crypto market can not be predicted. Some investors would just come and buy a random coin and expect that when they come back to check it 6 months later, It would have a pump to 10X or more, But when Reality sets in, They will be shocked to see that their investment has dumped deeply already.
Some Investors are buying a coin at a time high, and when the coin start dumping they will resort to praying and fasting that the market should move in their favor. After the market dumps, These investors would start wailing that “Crypto is a scam.” But Is Crypto truly a scam or has your lack of research made you think Crypto is a scam?
Investors need to understand that the Crypto market is not fully regulated, meaning you can be a victim of Rug pulls.
- “Rug pulls are a common means of hyping a coin they created, only to take everything and disappear.”
So the importance of researching cannot be overemphasized.
It is always easier to observe and analyze the market when you are not a participant, And your analysis seems to be perfect until you become a participant in the market.
CONCLUSION
With the recent hype around cryptocurrency, Many investors are getting on board. Investors are holding different coins in the hopes that one day it will be 10x, 100x, or even 1000x.
Sure, this may happen sometimes but do not heighten your expectations. The cryptocurrency market is highly volatile. i.e Bitcoin can be worth $25,000 now and worth $12000 a few hours or days later.
Crypto is not a get-rich-quick scheme, Do your research(DYOR) and Remove unhealthy expectations from your heart. Consider what I wrote as Friendly banter.
Please Do not forget to clap and drop a follow for more interesting article. You can connect with me on Telegram via: https://t.me/Cryptomayor0
or on Twitter at: https://twitter.com/LateefSuleiman1
