I think it’s time to address how false information is gaining traction in the cryptocurrency arena. From crypto influencers to prominent YouTubers, many people land themselves in the middle of the crypto misinformation lane.
Over the past month or two, I’ve seen coins pop up with copyright issues and problematic histories. We’ve all heard of the Squid Game coin and how it performed a rug pull gaining millions of dollars off investors. It is listed once again, and people are still investing. These investors are new people looking to get their feet wet in cryptocurrency.
Today Saitama is down because their launch party did not showcase rumored information that people close to the project generated. This move led a lot of investors to take their money and put it elsewhere. The backers of Saitama stated that their Saitamask will be available in two weeks, but this wasn’t the most damning issue. The problem many people encountered was the lack of mentioning exchanges that have been rumored all over Twitter and YouTube.
While the launch mentioned the development of a Saitama blockchain and 6 percent staking rewards plus a few more goodies, it wasn’t enough to keep people from selling. A lot of people with large amounts sold their Saitama and came back in at a lower cost. However, I am more concerned about the new investor.
So I’ve put together a set of tips for people looking to get their feet wet in cryptocurrency.
1. Never believe 100 percent of what you are hearing.
People will often lie to try to get their tokens to the finish line. Research the token and the community chat regarding the token. Make sure you are comfortable with what you are hearing. If you feel like something doesn’t sound right, don’t invest.
2. Do not overlook things like potential copyright issues.
If a token is taking on the name and identification of a well-known show or character, be careful. People stated that there were red flags during the Squid Game token, but many people missed it. The fact that it is back and ready to cheat more people is surprising.
3. Never invest more than you are willing to part with.
I recently purchased a car that was thousands less than the one I initially wanted. The reason I bought my car was that I wanted to free up more money for investing. I’m not going to miss the money I invested because it wasn’t something I was looking to keep in the first place. However, I have heard about people investing their rent, utility money, and other needed funds on crypto. This isn’t smart, and it could cause someone to be homeless down the road.
4. Always Research.
You should read numerous articles and talk to financial advisors before jumping into crypto.
5. Know the difference between cryptos with utilities and meme coins that act as collectibles.
You should familiarize yourself with blockchain information, whitepapers, certifications, NFTs, Swaps, Metaverse, and anything else that new cryptos aim to be. You have to know what you are looking for regarding cryptocurrency.
6. Understand the difference between exchanges.
Not all exchanges are the same, nor are they all safe to use. Some exchanges are swaps that will rely on swapping USDT for Tokens or ETH. Some exchanges like Coinbase, Voyager, and Etoro will allow you to buy your crypto without swapping anything.
7. Pay attention to the bridge.
Some tokens cannot be converted to an erc20 bridge. I live in Texas, and we cannot use Binance, so I do not trade coins that are converted for the Binance bridge. Some people have sent their cryptocurrencies to the wrong wallets due to not understanding the bridge issue.
8. Do not fall for people on Twitter trying to help you get into your acct.
You wouldn’t give a common stranger your bank acct information, so this should be a no-brainer. Do not give anyone access to your wallet. It could cost you millions.
9. Do not spread false information to get your coin ahead of others.
It will prevent future people from wanting to invest and perhaps bring down strict regulations in the future. Keep it simple and let people know that whatever information you have, is a rumor until it isn’t.
10. Have Fun!
I am not a financial advisor.