Cryptoworld crazy week review: always beware of the scam

loonyfool (51)in #cryptonews • 6 years ago (edited)

What happened this week was flabbergasting: more than a couple billions of dollars disappearing into thin air, coins losing 1/3 to half their values (even more in some cases). Let's discuss it and analyze it.

Whenever I need to spend money to earn, to make a gamble in order to achieve some interesting profit, I always keep that thing in mind: don't get carried over, because you also have to see the other side of the coin. Expect the best, but be prepared for the worst. That's what you have to tell yourself. Every single thing in this world can be a scam, so you have to classify things well before jumping inside something you would regret getting into. Coinbase and Bitconnect are in my view the 2 best examples of what you should definitely avoid, well Bitconnect has recently closed anyway, it tells a lot about it.

As for what I used to acquire Bitcoin or Ethereum, I recommend Bitpanda (for people in Europe, not sure it is possible elsewhere for now, but I will make a full post about all the worldwide possibilities), as it seems for me the less dangerous possibility with the less fees too, after some investigation and experience through many sites like Coinbase and Bitconnect that I'm gonna detail in a post dedicated to those issues very soon where I will also be reviewing trading sites.

I prefer staying cautious, wary, than regretting some ridiculous mistake. Never follow the mass. That's a golden rule. What happened this week just tells us how breakable this volatile market is. You should never forget about it. We were all like that though, I don't exclude myself from that idea, seeing Ethereum jump rapidly from 250$ in October to 750$ in mid-December, almost reaching 1500$ in mid-January, before that famous crash...again, we all thought Ethereum was the coin of 2018, that nothing could stop it right now that it would even reach 10 000 $ rapidly...

But all of this had no real basis. I realize it now. Once something keeps rising up, you only tell yourself it will keep on staying like that, we are often doing it by common sense, but this is more dangerous than anything else. I thank myself for not having chosen to buy at this time, like the people who bought Bitcoin at 18 000$ and are literally fucked right now. Even for Ethereum, I was enthusiastic, I mean I have seen their project, their source code, their purpose is solid and I believe it will be one of the leading coins soon, but it just might not rise up as fast as what we initially thought.

That was a warning, I take it as a lesson for me, next time it could be worse and make huge damage to my fiat money if I get into it without weighing the pros and cons of buying it on such a rise, so no need to invest too much. Hopefully I did not have many holdings, I had converted some steem dollars to test the market first before putting in real cash. And everything literally disappeared during this crash, meaning it doesn't need the coin you're holding to reach 0 in order to lose everything (this is what I initially believed), if it crashes terribly, you can't hold something like 10^(-3), or 1/1000 of a coin. That was an interesting test and lesson to learn thanks to Steem dollars, next time I will use them in a better way :D

(all graphs have been obtained thanks to https://www.worldcoinindex.com, I recommend this site along with https://coinmarketcap.com as the best tools to view all the information you need about every single coin: markets, value, site, source code, etc.)

Evolution of the value of Ethereum from mid-October 2017 to January 2018.

Screenshot from 2018-01-20 05-19-26.png

Compared evolution of the first 56 coins in the last 7 days: same pattern, same time: a quick fall during 2 days, then everything bounces back at the same time and ends up stabilizing with some tiny oscillations...trust me, you can check it if you want, this pattern has literally spread all over the place, every single one of the 1460 coins has been following this pattern. (sorry for the ads by the way, they keep jumping up every single time, I want to say this post is NOT sponsored by Kucoin or Budbo :D)

Screenshot from 2018-01-20 05-22-25.png

Screenshot from 2018-01-20 05-22-32.png

Screenshot from 2018-01-20 05-22-39.png

Screenshot from 2018-01-20 05-22-43.png

Screenshot from 2018-01-20 05-22-50.png

Screenshot from 2018-01-20 05-22-55.png

The main lesson to learn from what happened this week is to always beware of the scam, never take a rising up pattern for granted, and think twice before investing because even if a coin is popular and keeps rising up, its value mostly depends on what people put into it. It can rapidly fall if there is a massive panic. Just know that no coin will rise up forever, even the best coins do always things like "5 steps forward, 2 steps back". The main thing is managing to locate when it steps back. Still what happened on Tuesday and Wednesday was something uncommon, far from only 2 steps back.

I put all these graphs in order to show you something relevant I observed: all of them have exactly the same behavior, they quickly fall at the same time, have you wondered why ? 200 billion$ don't disappear like that. I believe it's due to some whales, some rich people in this world who had some interests in doing that massive withdrawal. Then everyone panicked and it went even deeper. They have begun reinjecting since then, and I believe they already made profit. That kind of behavior is disgusting, it shows the crypto world is still far from solving this main issue that exists in the fiat currency world that urged most people to invest in it in order to flee some inequalities in our traditional world. Still those same inequalities seem to duplicate here too.

But still, I believe the crypto world is here to stay and will end up solving them. We should just stop getting carried over and invest wisely, like the people who invested in Bitcoin in 2010, before it got mainstream, without following the main enthusiasm of crowds. The main problem is finding the new Bitcoin, and trust me this is more interesting to look for than just investing in Ethereum or Bitcoin right now, unless we witness another "correction" that would send their value low...I will let you know everything I manage to find about new, promising coins and ICOs in this terrific quest :D

That's it ! Thanks for your attention ! I will be back soon with more of the same kind ! Stay crazy and keep making fun of life instead of letting it make fun of you :D

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