Before you invest into crypto please keep this in mind !

Hey,

I watched many crypto projects rise and fall and I talked to many investors and what surprised me the most is the lack of understanding of very simple financial rules.

**You can’t generate money out of thin air!** I read it every time that people think that everybody will be rich with this or that token.

If you make 1000$ someone has to lose 1000$ (+ the fees for each transaction) a

Another real-life example is dodge coin someone invest 8k und made billions with. This money is from the people who bought after him and hold it when he sold it. Each of them gave him a “piece” of his money.

On paper it can look like everybody in plus but when people start to sell than the price would “adjust”. The same is with burning tokens increase the price for a token but not the overall market cap.

**Crypto has no “real” value**

Right, it has zero value it’s all backed on real economy and it can’t stand on its own. When you buy a stock own a piece of the company. When you buy crypto you own nothing expect the crypto itself of course and a link to a discord group. The worth is created by people who put real money behind it. Maybe there are future projects but even what I saw nothing looked promising.

**A lot of scammers are out there**

There are a lot of scammers. I could write 10 pages about it but when a YouTube celeb. is promoting it its basically a scam and a quick money grab.

How it works

It always works the same way. The invest 100k or more into their own crypto project. Then they hire celebs to promote it. The price skyrockets and then they dump it and abandon the projects and move on.

**When you invest, keep your emotions aside**

Maybe just invest because of the memes and they get blinded by the charisma of certain people. They don’t look how the company performs or anything they just want to the moooooon and that’s it. Value a company first before you invest. I see a lot of cult like behaviour pls. don’t be the guy….

**Right now, it’s a giant dynamic pyramid scheme.**

Because it has no value on its own its a pyramid scheme where you can enter and exist whenever you want.

**Do not go all in**

Do not put all your life savings into it and pls don’t take any credit at all. Always invest as much as you afford to lose.

**Final words** I know many believe in it and want to become a millionaire quick (someone said to me slow which meant 1 year lol) but just consider it before you invest. I’m tired to see young kids lose everything and getting brainwashed and even shamed for it from the founder itself.

The “system” will probably establish to a certain extent, but I won’t change the world as they promise.

I work in a big company, and I was optimizing a part of it, and I thought about digitalization with the existing protocols (which work greatly) but after some talks with the devs it would be impossible because they are not compatible, to adjust it it would cost billions and the benefit would be close to zero. It’s a very long way until it will be considered to be used 10+ years and who knows what the next big thing will be.

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43 thoughts on “Before you invest into crypto please keep this in mind !”

  1. You don’t really understand how markets work. Productivity raises value so for you to make 1000 someone else doesn’t have to loose 1000 otherwise the net wealth in the world would be constant and not increase. You have absolutely no ideea what’s going on.

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  2. I think some people here think that crypto will replace FIAT as the currency. So the “You can’t generate money out of thin air! ” (that is perfectly valid) is not true to them in this perspective.

    As FIAT money will progressively transfer into the crypto space, crypto will take value. Of course it is very unlikely to happen.

    ​

    “Crypto has no “real” value”

    Crypto does offer some sort of value, as it is an economic secured system that can be consider as an alternative of the current financial system. If crypto existed long time ago, it would have been a better tool than gold to create a financial system around.

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  3. >When you invest, keep your emotions aside

    Do you guys have emotions?

    I set my emotions off from the day I invested in crypto

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  4. Many cryptocurrencies derive their value from the service they provide, e.g. ETH as a protocol. That has nothing to do with the weird pyramid scheme you’re describing, it provides various layers of digital services and holds value due to that.

    Inversely, BTC functions as a store of value, the more people who want to store their value, the more an individual piece is worth, so even then what you’ve written here is false representation of what the value is (if everybody runs on the bank then FIAT is worth nothing also). If nobody is living in a house it’s still worth a lot of money, it stores that value because people want to own it, not only to live in, but in many interlocked financially complex systems (like leverage or rental). BTC is quickly charging towards the same space, since it digitises those systems of ownership in a way more efficient way.

    All money is ultimately a conceptual framework we use to store and exchange value, and most money growth occurs through the act of trading or lending money.

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  5. Market cap of crypto generally increases if people make money. It’s not a simple transfer of wealth between people

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  6. If you believe that “real money” is real, you live an illusion. The whole world economy and the way society works is a big pyramid scheme . You are a slave to the system if you believe the bullshit that you just wrote lol. Everything is just a concept, an imaginary thing that groups of people “believe” together and gives value to it. Same with money, same with Gods, same with everything. Don t you see how everything is manipulated, that every 10-15 years, a new “financial crisis” arrives? The system is rigged, you work your whole life for nothing , inflation eats most of the people. Crypto is here to stay, it changes some flaws that “real” money have. But it s fucking brand new, it s here for 13-14 years. Only now people start to find good uses for it. It s a great technology that is being used to make gains by smart ones. FOR NOW. Things will change in the future when adoption kicks in. And remeber this, Bitcoin never crashed!! Bitcoin was always bitcoin! The $$ price crashed, and the hopes of dumb ones who sold too early. Bye

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  7. Go mine bitcoin “out of thin air”, you’ve got till tomorrow.

    Shouldn’t be a problem right?

    I’ll wait for your results

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  8. Nothing wrong with saying you shouldn’t go all in (you shouldn’t). But you are wrong on several levels:

    “you can’t generate money out of thin air!”

    As a matter of fact, basically every currency is exactly this since we lifted the gold standard. Sure, eventually surplus money leads to inflation so printing money effectively devalues existing money, but before the devaluation takes place the boost from new capital in flow can increase goods being produced and bought and businesses being launched, so handled correctly money printing can indeed produce value out of thin air.

    “Crypto has no “real” value”

    Depends what you mean by real. Sure, if the internet suddenly didn’t exist you couldn’t really use it for medium of exchange – but much can be said if the banking system collapses. Pure cash cryptos like BTC don’t produce goods and services, but others do – ETH has defi projects and other ventures that are good producing buisnesses and thus you can estimate loosely a fair value for ETH.

    Sure, it’s not got backing like a stock does, with ownership of a company with assets – but it has value.

    “A lot of scammers are out there”

    Very true. These people also exist in traditional markets however – Look at herbalife and many other scam companies out there.

    “When you invest, keep your emotions aside”

    Again good advice.

    “Right now, it’s a giant dynamic pyramid scheme.”

    Some are, some aren’t. We can both agree there are pyramid scheme projects out there – anything with “reflections” or entry/exit taxes are good examples – but not all projects are pyramid schemes.

    I feel you are giving good general advice on how be careful with investing – but you tar the whole of the crypto industry as a scam by default in your post, which tells me you either don’t know a lot about the crypto industry or you’ve been burnt in the past and are just scared of the space.

    Regardless, it’s definitely a speculative venture. Realistically should not pass 10% of your portfolio value imo

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  9. >You can’t generate money out of thin air!

    I hate when people say “everyone can get rich on this coin/crypto”, same vibes as ‘everyone can get rich of this mlm”. The money has to come from somewhere

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  10. You’re correct, there’s only 2 ways money flows into these coins- Buyers and sellers. Opposed to traditional stock where you’re entitled to a share of profits from the product sold by the business. Without being entitled to any of the projects profits virtually all these coins operate on ponzinomics.

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  11. When you buy cryptos, you are buying a piece of the underlying fundamental layer of softwares that support applications that are going to built on top of it.

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  12. Why are you here trying to convince people who invest in crypto to not invest in crypto? This just looks like a poor FUD attempt.

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  13. I read a lot of posts like this on r/cryptocurrency and what surprised me the most is the simple lack of understanding of simple ~~financial rules~~ crypto currency fundamentals.

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  14. Appreciate the advice and the effort. Don’t let comments get you down, some people just can’t respect any other opinion than their own.

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  15. Hello Ostblocktricker. It looks like you might have found a new scam? If so, please report this scam by crossposting to r/CryptoScams, r/CryptoScamReport, or visiting [scam-alert.io](http://scam-alert.io/). For tips on how to avoid scams, [click here](https://www.reddit.com/r/CryptoCurrency/comments/s7srty/crypto_scams_how_not_to_fall_for_them_what_to_do/).

    *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*

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  16. It’s an investment in emerging technology. We haven’t even realized how blockchain is going to change every day life.

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  17. Sounds like the stock market, housing market and just about any other market out there! Even when we buy food it’s following the same principle.

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  18. >When you buy crypto you own nothing expect the crypto itself of course and a link to a discord group.

    What kind of nonsense is this?

    This whole post is just uninformed shit.

    Plenty of crypto provides actual service and utility.

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  19. It’s funny how we act like a tribe and think we are in the same team but we are against each other, we are tryna rip each other off. One guy makes money it means another guy loses

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  20. Can we just sticky this? From reading this sub and a few other crypto-related subs, far too few people realize, that crypto is essentially a zero-sum game.

    The amount of people thinking of staking as “passive income” is worrying.

    Sure, when we finally see widespread adoption, then a few of the current chains will get massive returns. But again, these returns will just come from more people piping more money into the market.

    And we neither know which chains will be successful, nor when they will be successful.

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  21. >I’m tired to see young kids lose everything and getting brainwashed and even shamed for it from the founder itself.

    I think you mean well OP, but this post is written like that of a young kid.

    …or someone on something. What in the world does this even mean:

    >its a pyramid scheme where you can enter and exist whenever you want.

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  22. Many comments, but nobody vote. Meaning 50% for fiat 50% for cryto as new asset class. Both also hv their value. No argue..

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