Crypto

I know that chasing fast money with smaller cryptocurrencies is very enticing and there are certainly a lot of people that have happened to hit it big getting in on presales or simply investing early on big cryptos. I am not saying that this is all luck or that it can’t be done but that is not what we will be talking about in this section.

You see crypto does not simply print money into thin air like it may seem. Just like with stocks the price of a crypto is based on the amount of money being put into a specific crypto versus the money that is being taken out. The thing that makes buying crypto difficult sometimes is the fact that there are creators of many cryptos that can give themselves large portions of the tokens when the crypto is first created without putting in any actual money. A lot of times with smaller cryptos that are not decentralized, meaning money and assets are being managed by some central party, the founders will spend a lot of time building up hype for their crypto until the price has gone up substantially. Once they have done this they will just sell the coins that they gave themselves at the start and end up tanking the price of the coin. In essence they are just taking the money that their consumers have put in and putting it in their own pockets. A lot of times founders of coins will even do this the first day or week and just take everybody’s money through the way they set up the coins code. This is what we call a rug pull and it happens every day even with coins that were thought to be trusted.

Because of the risks and lack of legislation on cryptocurrencies, it is hard to know for sure what or more importantly WHO you are investing in. My advice on crypto is to treat it like the stock market and stick to buying the dips on trusted and decentralized cryptos like Bitcoin and Ethereum. These cryptos do not allow founders to simply pull money out and tank the coin and they arguably have much higher chances of being adopted for uses by society because of the amount of investors they have. Stick to the basic principles of investing, when others are scared be greedy and when others are greedy be scared. If you do this and stick to the more reputable cryptos you will probably end up making some money rather than having it stolen from you.