Crypto isn't A Scam...Just Don't Get Greedy

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We in the crypto space would not forget today in a hurry, and we've seen some pretty wild, crazy times over the last decade. To see a token among the most capitalized in the World suddenly lose 99% of its value in a day is mind blogging, coupled with the downfall of a revered stable coin, even though many can say they saw that one coming.

While we empathize with those who have lost a significant portion of their assets (whether they decide to sell or not), we must also look out for the lessons from this episode because no investor is particularly exempted from losses. Volatility is the name of the game here and we must constantly remind ourselves that.

Now emotions are all over the place and am sure you've heard all sorts of opinions. Who wins in all this? Regulators. The IMF, World Bank and other DFIs will probably have some smirk on their faces seeing this; after all, it was what they warned us about. Let me not deviate too far from the point am trying to make, but perhaps why the DFIs have crypto all wrong will be another discourse for another day.

From an individual standpoint. a lot of people have taken a beating and probably do not need to hear this. However, for those who are just venturing into the space or thinking about making a subsequent investment, it is important to note that the search for quick and ridiculous returns comes at our own risk.

Many times we chase ROI without considering the substance of the project or how sustainable it is. No coin is immune from a crash, but you can often see in people's reaction all there is to know about that particular project. For those holding Bitcoin and other high value assets for instance, there is this assurance that comes with knowing a rebound is inevitable no matter how badly the price dips. The same cannot be said about some alt coins.

Some people even know fully the danger of investing in some projects but are lured by the promise of ridiculous returns. I have heard about a few special cases where people took out loans to invest in crypto all for the promise of returns. If you invest heavily in a project that has little hope for rebounding in the medium to long term then the motivating factor was probably greed more than anything else.

Matters Arising

Obviously we can't keep having these type of wild swings in the space long term, but be rest assured that the fundamentals that make blockchain technology so vital are still in place. We need to gear towards stability, and thankfully lots of projects and innovations are working towards that daily. These are trying times for the space, but one we will certainly overcome.



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19 comments
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I say have a few buckets, safer buckets (bitcoin eth Hive) and have some risky fun with a percentage.

But yeah you can always tell when someone suffers a loss that was based on greed, because they are always so angry.

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Am surprised by how unbothered I am about seeing my assets drop like this. Might be experience, or because I know that a rebound is inevitable

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A lot of the crypto has risen many times their value. So sometimes it makes sense for it to dip. A good buying opportunity if you can timed it right. I just cost averaging and buy small amounts !

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most crypto isn't a scam. Very good point though. Much harder to get scammed when you aren't greedy.

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True, the more free money you want, and wanting cryptos extremely cheaper, the more you are vulnerable to getting scammed

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The sweet thing about crypto is the fact that it's volatile. Crypto is not a scam, many investor and traders loss their money because they are greedy in some case some don't understand what the market is saying

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I only wish every investor reads this and realise that this is just another of those times where they have to lose to gain.

Those better days would come again, we just have to use this opportunity to buy the dip and hodl or just hodl what we've got already.

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I definitely won't be forgetting this dip in a long time too, I was still a newbie in 2018 and didn't really grab the intensity of that crash.

Here today, a lot depends on a project's long term goal, the use case and the people behind it. I am optimistic we will bounce back from this.

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Great points on here. The price is not the only thing to consider. Yes it is painful to see you hard earned money, whose plan was to multiply a1000 x tank to near zero. Now more than ever is the time to remember why you entered into a particular investment where do you see it in th coming years. Plus if they ever was a time grow in u derstanding and learningmore about crypto this is the time

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Time grants experience especially when willing to learn from the lessons that accompany it, you only see what's beneath the eyes.

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One thing I have always said is that the market will always play itself again and again. For long term technical analysis traders, it is not a news to see a market chart follow almost the same pattern and if there will be changes, it might just be prices or some few ups to downs but the market data chart always looks the same. I saw that after the halving of 2012 and 2016, the market went up through the sky and held it there for 1 year before it began to drop, 2018 was very visible and so I was looking at 2022 as one. Although didn't expect the market to go below 20k for BTC but I expected it to go down.

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We sometimes forget that free things are not really free and that's why we sometimes get scammed because of our greediness

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I don't think, investing in crypto currency with your spear cash will cause problem to people.

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So many fall into the greedy bin and wonder why they fail chasing things they shouldn't. Take the time and invest in a project building slowly over time and you will always come out on top.

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