Guys, you know I don't shill cryptocurrency projects, at least I don't think I do. Yeah, I've written about coins and tokens I've invested in and feel good about, but I don't think I ever said, you guys should invest in these particular projects because they are gonna go all the way to the moon, and if you didn't, you would be left behind covered in rocket exhaust and asteroid dust, right? Rather, when writing about projects I discovered or particularly favor, I usually qualify my raves with the standard disclaimer:
This is not investment advice. All financial investments are risky, and cryptocurrency, as an emerging asset class, can be particularly so. Should you decide to support any project, you should be sure to conduct your own detailed research. Ultimately, you buy at your own risk.
Yeah, maybe not in those exact words, but you get the gist. And yeah, I know, it's probably a bit much, but God forbid, I'd hate for someone to come lay concerns about a depleted pension plan or lost medical funds at my feet because I told them to support a project and instead of heading to the moon, that rocket ship turned around and pointed its nose all the way back down to hell, all right? So I try to just make that clear all the time.
Still, even though I may not be qualified to guide anyone's investment choices, I do think that I can point out some things you should not do when thinking of investing in a crypto-coin or token, and this is what I'm proposing to do today. Let's get into it.
Image courtesy Unsplash
Do NOT make investment choices based on social media spam
It's hard to tell truth from fiction these days, right? Particularly on social media platforms, I get that.
I think that we can all agree that there are bad actors on social media who won't hesitate to access your crypto wallets and steal your funds if they could or steer you in the direction of a shady project where after investing, you won't be able to withdraw your funds again. And so, if ever there were a time you'd want to proceed with caution, this would be it.
Some fake accounts are easy to spot though. Like those spam bot accounts you'd see on Twitter, for example, shilling crypto tags and flooding your feed with rocket emoji GIFs urging you to "pump it, pump it, pump it" or sending you on solicited messages on Discord, promising giveaways.
You'd want to steer clear of those.
Beware low volume coins with a circulating supply of 0
Guys, listen, I know what it feels like to feel anxiety, to look at a coin pumping and to literally sweat from fear of missing out on the next big crypto project which could change your fortunes overnight. But hand in hand with that, I also know what it feels like to suffer from despair after reacting emotionally to some fabricated hype only to get scammed.
FOMO is like a drug, I can tell you, and if I've learned anything since investing in crypto it is that you need to be level-headed and to gather as much information about a project as you could before putting your money in. It is never a good idea to make investment decisions from a place of anxiety and vulnerability. Never.
So please be careful, and stay away from those large mover coins recording thousand percent returns even though there are no coins in circulation.
If a YouTube influencer is shilling a project, proceed with caution.
And hey, guys listen, I'm not trying to stop a YouTuber's hustle, right, why should I? I've subscribed to quite a few influencers and I actually sit and look at a healthy dose of digital asset videos myself. I'm not saying all crypto projects promoted by YouTubers aren't good choices, a lot of them are. I am simply saying that you should proceed with caution.
Remember, sometimes influencers are paid to promote projects because they attract large audiences and though they should disclose their interest or the fact that they're being sponsored, they don't always do that, right? To me, investing in a cryptocurrency project simply because a YouTuber uploads a video promising to let you in on a little secret and without exercising any due diligence is akin to buying the number 8 from that shady guy on Sesame Street.
Please be very careful to research any project you want to support, assess its objective and value proposition, read the white paper in detail, and look into the background of the development team before making an investment. And if you think you're not qualified enough to do any of that, then seek the help of a professional- not a YouTuber.
Take your time, sleep on it
In the cryptoverse, it may seem like everything's happening all at once. There's a lot of hype, a lot of excitement, and you can get carried away on that wave, making hasty decisions and sometimes investing more than you can afford.
I've been taught though that whenever you have to make important decisions, don't make them immediately unless you absolutely must.
In this world, unfortunately, there are many honey pot scams and rug pull projects out there, far more than there are legitimate projects, and even among legitimate exercises, not every project is destined to succeed. So take your time and, as I said in the beginning, research.
Get the right address
Sometimes cryptocurrency coins carry the same or similar names, and so, when purchasing a coin- particularly on decentralized platforms- be sure to verify that the address is accurate.
Keep your wallet keys private
Do not scan, screenshot, save on your computer or share with anyone. It's always advised to use a hardware cold wallet like Ledger or Trezor, however, if for some reason, you have to use a hot wallet that functions online, please remember to secure your password. Write it down on a piece of paper and keep it somewhere safe where you can access it if you need to, and private.
Well guys, those are my quick thoughts on measures you can take to protect yourself and your funds. This is by no means an exhaustive list though, and so I'd like to hear about some of the measures you would advise taking to protect yourself and your assets when investing in crypto. Please let me know below. I'm off again on the trail of another story, my friends, but until we meet again, please remember to be safe. Arrivederci!