We’ve all heard stories about people becoming overnight crypto millionaires, but how likely is it that you will become one?
Not as likely as you’d think. There is a “hype-bubble” around the crypto space, that many people have capitalized on.
Crypto can be a dangerous game. And if you are not educated, it’s more likely that you’ll go broke than become an overnight millionaire.
But that doesn’t mean Crypto is bad. Actually, some cryptocurrencies have great function. For example, I am a big fan of *drum roll*…
Privacy coins! I know, shocker, but seriously their function is very important. They allow you to own crypto that is not tied to you in any way.
But that’s not what I am wanting to talk about in this email today. I am wanting to give you some pointers on what to look out for when you are getting into crypto.
1. DO NOT Store your crypto on an exchange.
a. This is a vital point when it comes to owning crypto. Make sure you do not keep your crypto on public exchanges. If you do, the exchange has control over your crypto, not you. Look at the massive FTX crash for evidence of this. They lost of $8 BILLION dollars of users crypto.
b. You need to store your crypto in your own wallets. Preferably cold wallets that are not tied to you.
2. DO NOT Fall victim to the hype.
a. Like I said in the beginning, it’s easy to daydream about becoming an overnight crypto millionaire, but the truth is, if you aren’t spending a lot of time doing research, it’s probably not going to happen. If you are interested in using crypto as an investment, do your research.
b. Avoid listening to “gurus” who promise huge gains in no time. Do not let them capitalize on the FOMO. Just because a crypto is endorsed by a celebrity or even a popular businessman, doesn’t mean that you should invest in it.
3. DO NOT Go all in.
a. At the end of the day, Crypto is still very new, and the market is volatile. There have been many cases of people going broke investing everything they had into crypto.
b. Do not trust crypto, or it’s institutions. Time will tell how it is going to hold up.
This is not financial advice, and I am not saying crypto is evil. All I am trying to say, is that you need to be careful when investing in it.
I hope you enjoyed this article! Please share our blog with your friends and family.
Thank you!
Eric Meder