Newcomers in the crypto industry face several challenges
One of the primary challenges they encounter is scamming. Many scams involve tampering with the contract address of specific projects. Due to their lack of knowledge, newcomers struggle to audit contracts and remain unaware of the various types of scams. They often assume that buying tokens at low prices or with low MCap will always be profitable. However, they later find themselves unable to sell these tokens due to corrupted contracts.
Another prevalent challenge is the rise of fake airdrop scams. The $arb airdrop distribution has attracted a large audience, and scammers are taking advantage of this vulnerability among newcomers. They create DApps that sweep every connected wallet, engaging in illicit practices.
While top-tiered CEXs carry fewer scam risks, newcomers tend to incur losses on these platforms. Their fascination with hype leads them to make impulsive decisions, expecting quick profits within a short time frame. When the tokens they buy fail to generate instant profit and instead experience a decline, panic sets in and they sell, resulting in losses.
As a newcomer, I personally overcame my weakness of panicking by participating in copy trading, which not only increased my knowledge but also cultivated patience.
I would love to hear about your journey in overcoming weaknesses as a newcomer in the crypto industry and how you have reached your current position. Which platforms did you utilize as a newcomer, and which ones are you currently using? As an Australian resident, which platform do you prefer at the moment?
When I jumped into the Crypto industry, messing around with contracts wasn't even on the radar, so I didn't stress about that stuff. But I gotta admit, trading got me a bit jittery. Back in the day, there was no such thing as copy trading, so we had to handle our own trades. Granted, it wasn't as tough as it is now 'cause we didn't have a gazillion tokens to keep track of like we do these days.
I think the copy trading feature is one of the best things that could happen to beginners in crypto. They can make a profit without having high skills or investing much time. However, people should not forget that it is not a guaranteed profit scheme, so they should obviously be cautious.
As far as I remember, Bitget was the first exchange to introduce copy trading. I knew from the beginning that it would gain popularity day by day. Now, almost all top-tier exchanges offer copy trading.
I know Bitget introduced it but with many platforms now offering it, how well does it still work?
See here for newcomers
According to me, another hurdle for newcomers can be trading fees. Although the fee is nominal, the newcomers are more interested in a constant profit, even if it's small in amount. Since they start with low capital, $1 is also a big deal to them (Myself including where 1 dollar is a lot in my country). However, at present, there are many platforms that offer free trading for promotional periods and trading vouchers as well ( received some of them since I entered crypto)
Yes, Newcomers face challenges with trading fees due to limited capital. Even small fees can impact their profits. However, I have seen some exchanges frequently organizing events for new users, distributing crypto and trading vouchers as rewards. This significantly reduces their fees. For instance, I've recently noticed an exclusive event on Bitget for AU users called "Lucky Wheel" where users can spin to win prizes like a MacBook or a trading bonus voucher.
Yeah, I also noticed that event. This is probably the only platform currently organizing such exclusive events for Australia. Perhaps this offer aims to secure the Australian market.
With 100k prize pool for Australian users who joined this event, I think each winner will get something big out of it.
"Hey Ridwanrz, mind sharing the deets of the event you're talking about? Or maybe a link where I can find all the details?"
There is another kind of scam. The scammers share the private key of a wallet claiming that there are funds. That wallets do have funds but not the Gas fee. And whenever the native token of the network is deposited there, It goes straight to the scammers through a bot. The newcomers are unaware of such different types of scams so they fall prey to it'
"You're right. It's a foolproof scam. Almost every newbie falls for it."
You've actually done a good research going through the problems stated. You should also address them in your post. How can the newbies be safe from all these scams and how can they survive the industry if they keep getting scammed? I'll be expecting solutions and suggestions from you
Fitting everything in one blog or post is tough. Newbies should join different crypto communities and forums to learn about scams and their solutions gradually. If they encounter any issues, they can post in forums like this one, and we'll be there to assist. For example, anyone who reads this content will learn about more than three types of scams.
My early days in crypto wasn't a nice story to tell coz I remembered I knew nothing about DYOR. I just bought blindly and when a token dump after my entry, I get so scared.