Cryptocurrency is a highly profitable investment, but in truth, not everyone investing in crypto makes a profit from it.
The question now is, why is it exactly like this?
In this post, I will reveal four (4) types of people who must avoid investing in crypto.
It is not about throwing your hard-earned money at any profitable investment you hear.
You must know how to do it and also have what it takes to do it if you must succeed.
You must understand that something is profitable for others does not mean it will be profitable to you as well.
People become successful most of the time only because they have what it takes to do what they did.
Note; I am not saying you cannot succeed by investing in crypto, but whatever is worth doing is worth doing well.
Types Of People Who Must Avoid Investing In Crypto
1. People Who Cannot Do Their Own Research
If you can not do your research, then you should stay away from investing in cryptocurrency.
This is simply because the crypto space is filled with fake news and a lot of uncertainty.
So, it is of no use making investments if you’re going to lose your money.
Among many other things, lots of cryptos you see some people talking about on Twitter, Reddit and even YouTube are scams.
From time to time people are paid to promote shitcoins, and lots of people end up losing their hard-earned money as a result of believing it.
It could be just $50 or $100. Don not be deceived, no money is too small when it comes to investing in crypto.
Your little $100 investment into the right crypto could be worth over $10,000 within six months.
After all, people who invested $100 into bitcoin ten (10) years ago and held onto it are worth nearly a million dollars today, even with the falling crypto price.
Therefore, if you are going to invest in crypto and make a profit, then it is wise to do your research always and verify whatever you see before you can believe it.
This is the only way to go.
I must also mention that the source of your research is important, as well as the reputation of your source.
2. People Who See Crypto As A Get Rich Quick Scheme
You’re not going to buy a Lamborghini 2 weeks after investing in crypto.
Stop such a mindset if you want to invest in crypto and succeed.
Cryptocurrency is not a get-rich-quick scheme, and you should not see it as one.
People have indeed gotten lucky investing in crypto by seeing large profits within a short period.
That can happen to you as well.
But in truth, investing in crypto is like every other investment. It takes time, but your profit is a result of the particular crypto you invest in.
I have seen people whom after investing as little as $500, are thinking of becoming a million dollars richer in a few months.
My partner included; I remember what happened the first time she invested $1,000 into my recommended cryptocurrencies.
The amount she was expecting as returns in just a month was crazy.
That is not how cryptocurrency works.
Of course, it is possible to get lucky as I’ve said many times, and to see such profits, but that only happens once or twice out of 100 times.
Therefore, if you are not such a person willing to give your investment time, then it will be for your good to avoid investing in crypto.
3. People Who Cannot Stomach Big Loss
What is the point of buying bitcoin at $30,000, only to sell as it dropped to $25,000 just because you think you are losing your money.
Yes, cryptocurrency is a highly profitable investment, but it is also highly volatile.
The same way crypto can go up +40 in a day, that is also the same way it can go down -40.
You must have that in mind if you want to invest in cryptocurrency.
But if you cannot take a loss, investing in crypto is not for you.
If you do not know, your $10,000 invested in bitcoin could drop to $4,000. The good news is that it will always recover.
It has happened to me many times, but here I am because the price recovers even stronger each time, favoring those who held on.
Take Tim Draper, for example, who paid $18.7 million for 30,000 bitcoins at a U.S. Marshals Service auction in 2014 (that’s $623 per Bitcoin then). At a time, his bitcoin fell from $623 per BTC to $200, looking like a bad investment. Fast forward to November 2021, bitcoin rose to $68,721, taking his investment to over $2 billion.
Imagine what would have happened, if Tim was such a man who could not take such a loss at the time.
Therefore, unless you are such a person who can take a loss, having great confidence that your coins will always recover, then investing in crypto is not for you.
Note; you lose money in crypto only when you sell.
4. People Without Extra Funds
Cryptocurrency is not the type of investment you should put your entire savings in, or lend money to invest into, with the expectation to double it within a few weeks.
Yes, it may work out for you; however, you’re likely going to end up disappointed.
As mentioned earlier, crypto is not a get-rich-quick scheme.
With its high volatility, of course, you’re guaranteed to see big profits, but also short-term losses, from time to time.
You don’t want to find yourself urgently in need to cash out your crypto to attend to your needs, but at a time the crypto price is low when you end up selling at a loss, only for the price to double just a week later.
Therefore, cryptocurrency is not an investment for you to put $1,000 when your entire savings is worth $1,200.
If you take such a risk, you’ll end up a happy man/woman when everything works out, but should in case the unexpected happens (which of course always happens), then your remaining $200 will not be enough to hold you, and you’ll likely end up selling at a lower price.
Instead, it makes more sense to invest just $200, when your entire savings is $1,200 or $400 if you’re taking a high risk.
So, if you’re going to invest in crypto, the only way to do so is to invest the money you’re sure you can live comfortably without, at least temporarily.
Always remember that the price history of crypto has never been upward alone.
As I’ve mentioned many times, investing in crypto is a highly profitable investment.
It is one of the best investment choices in the world, with eye-popping profits over the years, and it will only get better.
But as I’ve stated many times here, you can only go ahead and invest in cryptocurrency if, after checking yourself, you believe you have what it takes.
I believe this post has been helpful to you.
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[READ; How To Buy Cryptocurrency
IMPORTANT; you must never send money to anyone you meet online asking to help you invest in cryptocurrency. They are scammers. Crypto is easy, and you can do it all by yourself.
The information presented here should not be used as the sole basis of any investment decisions, nor should it be construed as financial, tax, legal, or accounting advice. I will also advise that you invest in cryptocurrency only what you are comfortable living without, at least temporarily.