Crytocurrency Newbies : Identifying the Gems from the Germs

I guess by being new to this concept of bitcoin and blockchain concept, it is easy to be lulled into believing that everything is a pot of gold. The only time we realise that it isn't the fabled leprechaun with its pot of gold is when we get duped! But then again its a little too late. So, here is what I learnt over the last 2 months of dabbling into this new world.

IF IT IS TOO GOOD TO BE TRUE IT IS A FABLE

I guess nothing beats the old saying, once bitten twice shy. I am sure many would be able to relate to the following:-

'Don't miss the next big thing, 0.5 BTC a day upon deposit'

So the next natural response is this, where do they get the money to pay you? Hence, you automatically reply,

'Are you sure? I don't even get that much from my bosses in a month! What is the catch?'

Then you go on a merry go round on how the concept is new and novel in the industry where your deposit is used in some investment, forex and trading scheme, which is too complicated to understand, but in short, there is a whole system that is working and people sitting behind their desktops doing the hard work so that you get your 0.5 BTC because they are paid to do so.

Well how the story ends, we know the outcome. After making the deposit, you don't hear from them again. The instant messaging is not working, suddenly the facebook account has blocked you and etc. The list is endless. Well, there are legitimate companies out there that does cloud mining and the Return On Investment (ROI) can be pretty lengthy and seems to take forever, but there are still in business because they pay! Simple logic. So, first rule, if it is a new setup, it is probably a SCAM.

CHECK, INVESTIGATE, QUESTION THINK AND THEN REPEAT THE SAME PROCESS 3 TIMES

Like the saying goes, it is never too late to start. So, it is better to start late than be cheated early. The bitcoin story is a little of a fairy tale, in early April 2013, it was only valued at $50 and now its $3,500 a BTC.

Mark Zuckerberg was a geeky dropout that created facebook and sold it for billions. Don't we all love stories like these. In fact it even make good movie scripts. Fairy tale do happen, but it doesn't happen to everyday Joe like you and me. That's why we go to the cinemas. That is why Slumdog Millionaire is such a hit. We want to be the next millionaire faster than Jack Ma can spell Ali Baba.

In short, listen to your Mama. There is no free meal in this world. We learn often through bitter lessons. The English sounding man that called you from the famed financial district in London is probably an African man calling from India, managing an account in the Cayman Islands.

LOOK FOR REVIEWS BY VERIFIABLE SOURCE

The real disease of people today is they are merely too lazy to verify the information they receive. Many friend would say, if the source is from Wikipedia it is likely to be true. Well, first rule of thumb, the scheme or company must exist long enough. Being in existence long enough, they would have attracted reviews. The reviews must come from third party sources which is not linked to them. It would be foolish to think that a youtube account created 1 month ago giving 5 star review to a company that was incorporated in some dodgy island 2 weeks back and is making multi million dollar deals and would like to invite you to be their partner and would take interest in your $500.

Where do you find these reviews, you can get them from good sources such as bloggers and youtubers which has garnered a good following. Usually if they are big enough to have a few hundred thousand followers and has been blogging or creating youtube videos for a while, they are not your fly by night cowboys. They would have a reputation to protect because they do earn from giving decent and honest reviews. You can do a bit of homework and find out who they are. To cut the story short, unless being fleeced off $500 isn't going to hurt you, you can learn it the hard way or spend a good hour or so, to watch some reviews on youtube and then decide if it is going to be worth the while.

THERE IS NO SUCH THING AS OFFER EXPIRING IN 5 MINUTES

Gosh, only the most gullible person will believe that they are in for a bargain. At the risk of exposing a friend of mine, there is this famous event where people go and listen to e-commerce because it is the next big thing after Internet and big internet moguls and marketing guru will impart their knowledge to you because you got a free ticket to the event. When the sales pitch comes in, suddenly you see a surge of interest in some youths that will be running to the stage to grab the offer. It isn't cheap but your credit card can probably handle the load. Afterall, if you miss this opportunity, the next hour it will be double its current price of $1999. So, the sheep mentality sinks in, you are doubtful but again you ask why are people so exuberant and running towards the sales counter like its a chance to punch Justin Bieber?

We all want to land that punch, but again, if one lemming is going to jump off the cliff that will be mass suicide!!

So, sit back, relax, let the calm set in, tomorrow when all the excite has abated, give the speaker a call, he isn't as busy as he seems to be, probably returning the porshe he borrowed to attend yesterday's event and he will still tell you,

'Man, aren't you the luckiest man. I still have one final spot for you at $1999'

That is because he needs your $1999 to pay for the college kids he hired to run up the stage and be the first lemming to jump off the cliff.

Morale of the story is this, even if you get a chance to punch Justin Bieber, let others do it first. If you hear it was a good blow, it isn't too late to ask politely from the organiser, if you can be given a chance to flick his ears. If I ain't going to be a billionaire, being a few million up is sounds pretty awesome, but I AM NOT PARTING WITH MY HARD EARNED $1999!

SOBER UP GUYS

My parting words is this. Remain calm, grab a beer, watch some youtube, read some blogs, do some analysis then review the decision. It is okay to rise at 12.00 pm because you are in time for lunch. Imagine if you are the first worm at daylight. The bloody crows will have you for breakfast.

Adios guys, you will hear more from me.