No doubt many of you will have been looking at the movements in the crypto world in recent months and and want to get involved. Whilst this is most certainly a great idea, there are some pitfalls which everyone should be aware of. Experts like Robert Testagrossa have been touting the potential success of crypto for some time now, and they are being proved more right with every day that passes.
Whilst big companies may now be looking into crypto, there are far more low level investors who are happy to put some funds into crypto and really try to make some cash with it. Here is how you can make sure that you stay safe in the crypto world going forward.
Danger of NFTs
Non-fungible tokens are really taking off right now, and they are a great opportunity for some people to make some money. The biggest danger with these however, is that not every NFT which is being created is going to actually make people big money. There is very much a temptation in thinking that a nice looking piece of digital art is a steal at $1,500, but in reality it could be worthless in no time at all. There is no problem taking a punt on something like this for personal use, but be aware that you are going to become a millionaire off a low cost NFT, that is a rare situation.
Watching Out For Trash Coins
There are some amazing cryptocurrency options out there and within this world there is also a great chance to make some good money from alt coins. Unfortunately however there is also a huge amount of trash coins out there, which will pump high and quick, then dump in no time at all. These are the coins which you have to watch out for. Basically the coins are created, bots are employed on social media to send prices up and then the creators of the coin sell big and fast, leaving everyone holding a big chunk of nothing. Make sure that you properly research the coin and the project before you decide to invest.
Many are touting the likes of Bitcoin and Ethereum to be here forever, and to seriously go up in price over the long term. This is a likelihood in all honesty, but the same cannot definitely be said for alt coins. Sadly there will be many of them which fall by the wayside and that could result in you losing your gains. This is why you should have a long term plan for your investments and genuinely consider what you are looking to get out of it. Those who lose money are usually those who are greedy. Remember that the key is to sell when the price goes up, and buy when the price goes down. Keep a figure in your head for what you wish to make, and if you hit the magic number, get out.
Be careful out there guys.