Make losses on crypto, it sounds so impossible. But life is not the fairy tale.
2 min read
Yes, how to quickly make losses on crypto. Of course, I didn’t make a mistake in the title. I even didn’t mean to say “how to make a quick profit”. Although that’s precisely what attracts some people to cryptos.
Because of the story of the people who bought bitcoins in the period from 2009 to 2012, and now they are wealthy, many of you can think that cryptocurrencies are a shortcut to opulence.
You can earn quick, it is not impossible, but this quick profit goes side by side with a big risk.
Whoever loves quick earnings at high risk, should go betting or to casinos. It is much faster than earning on cryptocurrencies.
This post is for those who see the possibility of quick earnings in cryptocurrencies, and don’t see the risks.
The truth is: you can gain a suitable profit, but also you can quickly make losses on crypto.
Even in the world of cryptocurrencies. I’ll try to briefly introduce some of the biggest traps for insufficiently informed investors and traders who are looking for quick wages.
You’ve probably heard that cryptocurrencies are generated through the “mining” process. You can invest a certain amount of money in hardware, this hardware is set to “miners” and money starts to come.
Although many overlook the amount of work and some of the costs that exist there, it is still relatively difficult to find a miner to whom this investment is not profitable.
Anyway, chances to quickly make losses in crypto are bigger here than anywhere. The equipment is more expensive and more complicated, crypto mining has become the business of big companies. There should be no illusion about that.
There is another type of mining, which many have “harnessed”, known as Cloud Mining.
It’s a much more elegant variety. You can rent someone’s hardware to mining for you, with a fee to the hardware owner.
That’s it! Voila!!!
However, there is one big problem: most of those who rent this hardware, don’t actually have it!
Where is the catch?
They pay old investors with money taken from new ones.
Most of those who offer cloud mining are fraudsters. Personally, I would never invest in it, because there are a lot of possibilities to quickly make losses on crypto.
But if somebody wants, here are some things on which you have to pay attention:
* If you buy hardware for mining, you need about a year to pay for equipment.
Honestly, there are no guarantees that you will ever repay the investment. But whoever gives you guarantees that you can through cloud mining make more than 100% a year, you can be sure he is a fraudster. If an alleged cloud mining company is not recognized, for example, on blockchain.info/pools, it’s all fraud. There is a very small possibility to find it in the “unknown” category, but this option is really very small.
There are currencies which are presented as cryptocurrencies, and in fact, they are not. As something is not cryptocurrencies, it still doesn’t mean that it’s a scam, but you have to be very careful. When someone suggests you invest in a particular crypto, this is what you have to be aware, in order to avoid to make quickly losses on crypto:
If the income is not guaranteed by a company, but the individual who offers you this investment, then that individual is either a fraudster or unauthorized person.
The reason is clear:
There are no guaranteed earnings in cryptocurrencies, nor anywhere else!
Also if the currency cannot be bought or sold on the free market, you should be very cautious.
In this case, there is the opportunity that price is manipulated and keep at an unrealistically high level in order to make the investment cost-effective.
Cryptocurrencies generally are open source, if they are not, you can be sure it’s fishing.
Whoever is considering trading on the stock exchange should have one thing in mind: there are always more losers than winners. That mean, you have to be better than most participants and then you can earn.
All right, all the generals are great after the battle. Don’t listen the others, you have to find your own path.
If you do not have experience with trading on the stock or cryptocurrencies markets or knowledge, there is the bigger chance you will be easy prey.
That’s all I have to tell you at this moment. Let us know what do you think!