Did you know…More than 70% of all traders in the crypto world end up losing money!
With everyone posting huge outlandish success claims all over social media with words like “Bitcoin”, “Crypto”, “Solana”, you might be wondering what they are talking about. Here I will tell you if it is worth putting your money into cryptocurrency.
Did you know…FTX known as the Futures Exchange was the third-largest cryptocurrency exchange by volume and had over one million users. In 2022 it was discovered that FTX had committed fraud. After the collapse FTX removed the ability to withdraw their tokens into money. The company was forced to pay over 12.7 billion dollars to customers. This shows how volatile and dangerous cryptocurrencies can be.
Did you know…Cryptocurrencies are not backed by any government or central bank. With regular paper money in a bank, your money is backed by the FDIC. The FDIC insures up to $250,000 per depositor. Cryptocurrency you get nothing.
Top 5 Cryptocurrencies as of 1/21.
1 Bitcoin – Currently $103,407. Known as the main cryptocurrency.
2 Ethereum – Currently $3,290. Another decentralized blockchain.
3 XRP – Currently $3.11. Easy bridge currency that allows faster transactions.
4 Tether – Currently $1.00. Unique stablecoin that attempts to mirror the US dollar.
5 BNB – Currently $686. Used to pay fees on the Binance cryptocurrency exchange.
The risk of cryptocurrency is losing everything in a matter of seconds. One user on X that goes by the username “@cryptonerd75” had 1 million dollars in crypto while having only 1 thousand in his personal bank account. They put everything in a strong buy signal and overnight got liquidated. He had lost everything overnight. One type of scam can happen when creators buy a large supply of their own tokens to inflate the price, then when the market cap hits a price they like, they sell all their tokens at once. This can cause the market cap to drop within seconds. The creator profits while everybody else who held the token holds a useless coin that is not worth anything. One popular example of this is Hailey Welch who performed something suspicious that looked like that. Many lost a lot of money on her coin.
Meanwhile, if you are smart and put in only what you can lose, into a trusted token, and it gains popularity. You could have gains upwards of 500%!
In short, cryptocurrency is not worth the risk unless you are willing to lose everything you put in.
