One of the errors new entrants in the crypto space make is they believe that it is easy to become wealthy by making investments in Bitcoin. Many would ask for sites where they could earn bitcoin as if there are coins sitting somewhere for them to pick like berries off the shelf of a supermarket.
The main challenge that newbies have regarding cryptocurrencies is that of education. When people hear that bitcoins can be generated through mining, they often misconstrue it that every computer can help them earn bitcoins.
This is accentuated by fraudsters who actually promote this fallacy hoping that people would be ignorant enough to believe them and send their hard-earned money with the hope that bitcoins can be generated for them through some phantom mining and trading activities on some computers or miners.
Bitcoin Mining is Complex
What these people who are new to the crypto space do not realize is that mining of bitcoin has long moved beyond the stage when every computer could do that because the competition is now so high that the mining difficulty of Bitcoin is way beyond what the ordinary desktop could do.
Nevertheless, thousands of scam sites are launched daily with the hope that some prospective investors would be lured into believing that there is quick money to be made and therefore send their funds to the fraudsters. That these sites are launched regularly is indicative that there is a thriving scamming ‘opportunity’ in the cryptosphere.
Don’t Learn from Experience
The only remedy to this is education either through research or experience. Unfortunately, thousands of people who lose funds to these scams still move on with the hope that the next scheme, the next program or the next offer would help them recover their losses. But this is mere wishful because in reality, the only people who make money out of ‘overnight wealth’ schemes are the fraudsters behind them.
The price of Bitcoin has shown good prospects since the beginning of the year 2020 and there are many newbies that have formed the impression that the coin is poised to another bull-run. Many would buy it and other cryptocurrencies with the hope that there would be another massive appreciation in value such as was experienced in 2017. But this is still a gamble.
None Can Predict Bitcoin Price
There is a consensus among most hodlers and analysts that Bitcoin would definitely increase in value over time, but the fact remains that no one knows when this would happen…or if it would happen. There are bulls predicting that the price of the coin would soar up to $100,000 by the end of 2020 but these are mere speculations.
The price of Bitcoin could go in either direction as far as we know. This holds true because no one can predict with certainty what direction the price would move. It could be worth $50,000 in December or $3000. This is why like in any investment, you should not put in funds that are critical to you.
Don’t Invest On Speculations
The way you should not lose your funds to scammers is the same way you should not lose them to wild speculations. This is why experienced investors who can trade actually do not try to predict the price tomorrow or next month.
They simply try to find the base of the chart of the coin they’re trading and make realistic but small gains. Some make as much gain as when Bitcoin soared to nearly $20,000 in 2017 from less than $2000.
This is the approach that every investors should take while investing in cryptocurrencies. For the new investor, avoid all cryptocurrency schemes such as HYIP, ponzi, bitcoin doublers and generators and all others scams hunting for your fund. All should only invest in reputable sites where they could make small gains by copying experienced investors. This way, your funds are safe while you make realistic profit.