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Crypto Research

The assumption of crypto bank is wrong

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The digital money is not as decentralized as people think. Today, numerous cryptocurrency exchanges offer a wide range of digital currencies such as bitcoin, ethereum, litecoin, etc. However, this doesn’t mean that users have to trust these vendors in the delivery of cryptos. In fact, these digital currency exchanges are mainly operating based on users’ fears and fears of the authorities. Let’s take an example: imagine that you and your friends have come up with a plan to buy some bitcoins from some third party service which offers you access to a virtual bank account where you can deposit your bitcoins when needed. You set up an account at this service along with your friends and hope for the best. When Bitcoin was launched in 2009, there were no platforms available to purchase Bitcoins from other means such as debit or credit card. As a result, people relied on third parties such as crypto banks (crypto exchange) to provide them with their required amount of bitcoins. This assumption is wrong because crypto banks do not issue virtual currencies like bitcoins but only accept them directly from merchants and hold them in physical vaults under lock and key (like custodians). Instead of trusting these crypto banks with your virtual coins, what if we told you that they are a tool used by lenders or some kind of financial scheme to leverage your money with worthless tokens? These exchanges issue virtual currency called ‘xxUSD’ or ‘xxDollar’ which means they are controlled by supplies while you gave them the real money.

Cryptocurrency Exchanges and How to Not Use Them

There are so many crypto exchanges that take advantage of users’ lack of crypto knowledge to lure users into the exchange and rely on their services. Unclear disclosure of crypto products that sound attractive but risky have been presented as safe or safer than traditional banks financial products. Despite all warning listed on the exchange, advertisements always described profits that more sound than risk for users to put their money into the honey pot.

What is Cryptocurrency anyway?

A Cryptocurrency is a digital currency that is not issued or verified by a centralized government. It uses cryptography to secure the data and transactions between users, as well as has an economy that is largely handled through decentralized digital money trading platforms. Many people choose to use cryptocurrencies as an alternative payment method, as it is more convenient and open-source than traditional financial systems.

The Benefits of Using a Cryptocurrency

  • Decentralized, Baroque-level of Privacy. Because cryptocurrencies are decentralized and based on mathematics, no one –incerity or not – is responsible for the transaction or the value exchanged for them. This makes them both cyber-anonymous and highly authentication-friendly. However, as we are dealing with financial information, it needs to be verified by a third party before anything can be done with it.
  • Security aspect. Unlike government-issued money, which has been linked to global money laundering, cryptocurrencies have been relatively safe from all known human-induced threats. They have been designed to defend against hackers and counterfeiters, preventing people from putting counterfeit coins in their wallets.
  • Trustworthy. Unlike other digital currencies, such as dollars or pounds, cryptocurrencies are not linked to any particular company or government. They are not even associated with any specific country. This makes them more flexible and open-source than other digital currencies, such as dollars or pounds.

How to Crypto links to Exchange

Crypto exchanges branded themselves as issuers rather than facilitators. They are using high risky liabilities but sell your with assets like products to trick you into. You think you are having assets until the bear market hits, it turns out you have liabilities that cannot be redeemed through a crypto exchange. A bank run then occurs, and your money is totally lost without crawling back. No regulations are sufficient to protect your losses, and lawsuits will take years to comprehensively determine who’s fault to lose money. 

The Bottom Line

The aim of this article is to provide you with the knowledge you need to get started using exchange is way more risky than you think. You must understand what you buy and what liabilities you have when bank run happens. You need backup wallet to prevent the exchange rob you and lost all your money.

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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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