My Boring but effective Silver Bullet method to avoid Crypto-Predators
Crypto-predator: Someone that preys on the ignorance of another by convincing them to spend their money on volatile crypto-based assets.
Cryptocurrency news is everywhere and there are many ‘experts’ offering investing advice and very eager to spend your money. Promises of 25% returns every week are streaming across the social media landscape. No wonder Facebook, Twitter and Google have banned any form of cryptocurrency advertising. Hundreds if not thousands of people have lost significant amounts of money in the process by investing and trusting many ‘investment gurus’ and participating in hook offerings.
How is the normal person like me supposed to enter this digital world of currencies safely without receiving burn wounds?
The answers lies somewhere between a hermit and a wolf. For me personally, I am a hermit by nature. Rarely do you see me participating in many crypto based offerings BUT when I do, I am stealthy in my approach. This has saved me from several scams and false promises.
If there is a magic bullet to solve this the quick answer would be that there isn’t one at all. However, I have developed a silver bullet laced with garlic in case those predators come knocking on your Instagram account. The silver bullet appears simple in its design but it is literally the difference between losing your money and keeping it! It’s all about the type of questions you ask that ‘Investment Professional ‘.
Questions! Before you shrug this off let me entice you a bit more with the method proposed.
Before I give up my safeguarded questions let’s look into the logic of why 90% of those offering you enormous returns are really full of sh*t. A brief list of why I don’t trust most people to handle my money:
Table of Contents
- 1 4 Important Points to consider about the world of cryptocurrency trading
- 2 My Silver Bullet Questions
4 Important Points to consider about the world of cryptocurrency trading
Cryptocurrency exchanges first opened in 2010 followed by MtGOX
While this isn’t a bad thing by itself, we all know what happened to MtGOX but what we don’t know if how many cryptocurrency exchanges got crushed from 2010. Did you know that 36 exchanges shut down and between 2010 – 2018. That’s enormous amount of money lost. These exchanges didn’t account for such high risk and volatility. What’s more worrying is each exchange of the failed 36 didn’t make it past 2 years of operation.
Cryptocurrency trading is technically just over 2 years old
While no confirmed research has proven otherwise, the rise in crypto trading on behalf of others parties is very new. Most people would use exchanges to exchange and hold their own money.
Most traders are self-taught
Many crypto traders are self-taught. There are a few that I know off that have been mentored by senior players. The more senior guys have deep experience from the genesis of bitcoin and have followed its developments from the beginning. Most other traders have not.
Advertising is all good and well but the psychology of it in this context is aggressive and almost viral in nature. The constant bombarding of ‘make lots of money trading bitcoins ‘ is a daily on my Instagram feed which puts me off the social platform quite a bit.
Not only is cryptocurrency trading by itself a very risky endeavour, using trusted exchanges doesn’t seem to offer much security either. I admit we have come a long way with exchanges now and im confident exchanges like ….. ….. …. Are a lot more solid that those before them.
I have painted a background for you. What you do is always up to you to decide. The best I can offer you is the silver bullet list of questions to vet any potential trader that finds your profile on Instagram and decides to make you rich.
My Silver Bullet Questions
What exchange do you use?
Important. There really only a handful of exchanges that you can trust. I won’t list them here as that constitutes advice however I would do a quick google search and you will be promptly be rewarded with the top 5 crypto exchanges in the world.
Tip: There are 2 vehicles to trade cryptocurrency. The first are exchanges like Coinbase where you can do trading yourself but it is limited to exchanging. The second would be guys like GDAX which is more for institutional trading. If you didn’t know already – Coinbase owns GDAX.
What investment amounts do you start with?
Most guys will ask for between $500 – $1000 to get started. May not be all that much but remember a lot of people have parted with over $10 000 at a time on a single spread. The trader may require more or even less. Doesn’t matter.
What returns do you suggest I will make?
Another general question will be about the ROI. If he hasn’t already told you then ask what returns can you expect in say a week and in a month. Remember market volatility can earn you -90% or even +120% depending on when you invest.
How long have you been trading for?
At this point the guy will probably start getting a little annoyed. He is relying on you to get hooked asap so he can send you a link to do the transaction. If he is patient and informs you of his trading experience that’s good.
Is your platform regulated?
Here is the lady killer. There are only a handful of recognized trading platforms for cryptocurrencies that are regulated to allow brokers / traders to transact with the public’s money. At this point the conversation ends abruptly, excuses are made or he gives you that information to check out online.
These questions are boring and not exciting but making money shouldn’t be an exciting endeavour. It should be a calculated and continues process that you carry out every day. Excitement in investing allows emotions to control and dictate actions which is exactly what Crypo-predators use to lure you into all this. George Soros said it best –
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring”.
You are armed now. No emotion in the questions to ask someone. The answers should be straight forward and to the point. A good investor is confident and really doesn’t care to entertain a person that is anxious. The answers you receive will be to the point. A predator will flatter and charm and make excuses. Trying too hard to get your money is a sure warning sign to tread carefully.
Be careful out there.
Radio Station: Blockchain Galaxy every Wednesday from 19:00 – 20:00 CAT the1873fm.com
https://mycryptoeconomist.com/2018/03/23/my-silver-bullet-method-avoid-crypto-predators/https://i0.wp.com/mycryptoeconomist.com/wp-content/uploads/2018/03/U5dsyio5mqonKh2hB1jFMfSHt6KVh7H_1680x8400.png?fit=1021%2C576&ssl=1https://i0.wp.com/mycryptoeconomist.com/wp-content/uploads/2018/03/U5dsyio5mqonKh2hB1jFMfSHt6KVh7H_1680x8400.png?resize=150%2C150&ssl=1CryptocurrencyinvestingCrypto-predator: Someone that preys on the ignorance of another by convincing them to spend their money on volatile crypto-based assets. Cryptocurrency news is everywhere and there are many ‘experts’ offering investing advice and very eager to spend your money. Promises of 25% returns every week are streaming across the social... firstname.lastname@example.orgAdministratorICO Investigative Journalist. Obsessed with the truth.My CryptoEconomist