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Crypto Research

How to spot a crypto liar

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Today’s digital world is packed with opportunities for everyone from seasoned investors to naïve newbies looking to make the most of their money. But for those looking to make the most of their investment, a digital wallet might not be the way to go in 2022. A virtual wallet is a digital storage that allows people to store and manage their digital assets in one place. This similar to bank account, personal credit card, or online banking account. When you put your cryptocurrency into an online exchange, you are giving that same authority to someone you can trust. You can also be sure that whoever owns the cryptocurrency won’t be able to access it without their permission. So how do you know if you are taking the right move buying cryptocurrencies without permission from others?

You’re buying into something old, not new

This may sound like a no-brainer, but it’s actually a pretty common mistake new investors make. New investors often buy into a coin just because it’s cheap, and they don’t understand the characteristics that make that coin successful. Buying in on a coin that has been around for years can actually ruin your investment. Compare that to buying in on a new technology that has just been released and has nothing to do with filing lawsuits or building a profitable business. Like FTX native token FTT, if you knew FTT is a paper money printed for FTX to boost their own valuation, you would not want to own it.

You have a Cameo stomach

Some people have an odd sense of humor, but many others are serious. With so much attention focused on the popularity of Bitcoin, it’s easy to forget that there are other cryptocurrencies available. In fact, the biggest player in the crypto sector is the famous Binance cryptocurrency exchange. Binance is a leading provider of blockchain-based platforms and tools. Having their data on the platform makes it easy for startups to launch their products and launch cycles. BUT… remember FTX collapse, you would not want to put your fortune into Binance.

There are no real-time price updates

There are always going to be price updates on cryptocurrencies, but they usually take the form of a flat price that affects practically no one. There are, however, times when price action requires more than a steady hand to regulate. These are those times when you need an automated way to spot when an investment is at risk. You can use a number of different techniques to do just that. There are many ways to detect when an investment is at risk, but one of the most reliable and accurate ways is to look for sudden, large changes in the price of an investment.

You’re using an exchange that doesn’t offer fraud protection

Fraud is a common problem on cryptocurrency exchanges. The most popular exchange on the market. If you’re dealing with a product that has a high risk of fraud, you should probably look into switching to another exchange. But for those who want to stay safe, and aren’t worried about stolen funds or international financial fraud, a digital wallet is a way to go. Also, spend more time to research founders and team members behind each crypto, you may find lots of similarities between scams and frauds.

Conclusion

Digital assets aren’t just for billionaires and millionaires. They can be a great investment for all kinds of people including young people who aren’t very familiar with the investing process. In order to protect yourself from scammers and financial fraud, you need to keep all of your accounts by your own. Also make sure that you keep your investments away from potential scammers and frauds. Now that you know how to spot a crypto liar like SBF, you’ll never purchase an investment that you’re not sure about. 

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Crypto Research

Say no to FOMO

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Do not FOMO into crypto. This is the rule that prevents you from becoming a bag holder.

ChatGPT suggested that FOMO is:

FOMO stands for “Fear Of Missing Out.” It refers to the social anxiety or feeling of regret over the potential missed opportunities, experiences or social events that others are enjoying or participating in.

You will see every social media platform where people shilled their crypto portfolios and told you how you missed the train.

This is not true.

Remember, there is never missing out of the train in the crypto because it is inefficient to sustain at the peak level for a longer time.

Rather, it will go down every time without problems.

You should do your research carefully and exam around the market sentiment.

When everyone says you are missing out, it is a time that the market is about its peak and hype.

You need to stay away from the social media and observe to see how the market performs. 

When everyone says the crypto is not more extended work, you should prepare to see how it may prepare itself to come back.

It is not always the case, but it usually works this way.

Do not influence by the social media shiller but trust your research!

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Crypto Research

Crypto is a good investment or not

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Many people buy crypto to believe it is a great investment. However, it may not be the case.

I asked ChatGPT about the crypto investment and here it is:

Investing in cryptocurrency can be a good opportunity, but it also comes with high risk and volatility. It is important to thoroughly research and understand the cryptocurrency market before investing. Additionally, it is recommended to diversify your investment portfolio and not to invest more than you can afford to lose.

Here are some misconceptions:

First, crypto is not a traditional investment that requires a conventional way to invest. Instead, it is a catch-or-miss investment that you really need to time the market to make profits.

Second, you do not need to hold for too long if you need money quickly. Crypto tends to perform badly long term than average assets did.

Third, high risk only sometimes has high rewards. Many crypto with high risks may not ever provide high returns eventually and many go to zero instead.

Last, do not go FOMO because you are likely to become a bagholder.

There is not missing out and it is too late in the crypto. Rather, you should always keep an eye on the market.

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Crypto Research

Mother of all bubble

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We are heading into a bubble economy and there is one that is about to pop.

ChatGPT suggests that a financial bubble is:

A financial bubble is a situation in which the price of an asset, such as a stock or a commodity, becomes artificially inflated due to excessive speculation and investment. This can lead to a situation where the market becomes overvalued and eventually collapses, resulting in significant losses for investors. Bubbles can occur in a variety of different markets and can be caused by a number of factors, including low interest rates, economic growth, and investor sentiment.

Let’s take Tesla as an example.

Tesla CEO is Elon Musk, who purchased Twitter last year and believed the company can help Tesla to make more profits.

Does it? Or he tried to inflate Tesla instead?

If you go to Twitter, there is less opposition than a supporting voice.

Elon Musk sells Tesla cars and Tesla stocks.

People purchase cars to help pump the stock price and when stock price goes up, people want a new Tesla.

Despite all the bad reviews about the car and its questionable autopilot feature, Tesla cars sold quickly and stock goes up no question.

Is this a Ponzi scheme?

Similarly, cryptocurrency is also highly speculative.

It goes up a time to time, but people buy the narrative without further investigating how useful the crypto really is.

What if people stop buying the crypto, will that still go up?

What if the economy is so bad and the interest rate is high that people have less money to buy more crypto?

We will see how it goes.

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