“Traps” that people fall for in crypto

FOMO: The fear of taking profits for fear that the crypto might go up more in the future. This has caused many people to ride the wave up and then back down.

If you don’t sell you haven’t lost any money yet when your crypto is down: This is wrong. If you are down, you are down, it doesn’t matter if you have realized the losses or not. This mindset has people riding their original crypto until they break even. The best mindset is to sell, realize the loss, and invest in what has the best chance of having gains.

HODL: This is shouted by crypto groups that don’t want sell pressure. The fact is many of the people shouting this are doing so for their personal gain so they can sell.

Deflationary: This does not make a crypto a good bet. It is simply a buzzword to make people think something is great. When doing DYOR it is something to notice, but if that is a crypto's main selling point, it likely will be a bust.

Diamond Hands: Someone has managed to convince people that not selling at the top and riding the wave to be in the negative is something to be proud of. This is not true. It is not something to be proud of and is just a way to prevent you from selling and using your money as exit liquidity.

Dating Apps: What the actual fuck? That wasn’t rhetorical. How do people think that taking financial advice from Tinder and DMs with sexy profile pictures is a good idea? Guess what, no one of Tinder or a Reddit DM or a Grindr message is going to make you rich and it is going to be a scam.

Easy Money: There is not easy money in crypto. You have a greater chance of going down 80% than going up 10X.

Cryptos are like stocks: No. No, they aren’t. There is a reason we don’t think many are securities. Stocks give you partial ownership of the corporation/company. Crypto does not give you partial ownership and in most cases, it does not give you a share of the profits made.

Safe: Nothing is 100% safe in crypto. Stablecoins are not guaranteed to stay 100% backed. CEXs are not guaranteed not to fail. Wallets are not guaranteed to be hacked. The more you do with your crypto to earn yield the greater the risk.

Crypto is a viable investment strategy that is highly volatile and filled with scams. You can make a lot of money with crypto, but it is a lot easier to lose a lot of crypto.