Blockchain startups are some times cool, innovative and exciting. We show our support by getting involved with their mission, sharing their passion and spreading their gospel. Yeah, every now and then a blockchain startup will come around and take us back to the days when we were excited about bitcoin and the hope it promised us in the future. For many investors, when bitcoin skyrocketed its way to $20,000 on one special December day. It was the greatest thing ever.

Bitcoin has cemented its glory year by hitting $20,000 barely a month after achieving five figures for the first time.

Since then there's been over a million startups promising us another shooting star miracle and eagering us with the chants "To The Moon, To The Moon, To The Moon" only to end up becoming what are now known as "Sh#%@ Coins". According to Investopedia, these are blockchain startup coins created by fraudulent technology companies.

Shitcoin is a pejorative term used to describe an alt-coin that has become worthless. Shitcoin value may disappear because interest failed to materialize because the alt-coin itself was not created in good faith, or because the price was based on speculation. - Investopedia

The impact has been negative and in so many ways have turned back the clock on progress. Due to the fact that cryptocurrency exchanges have been hacked more times then they are comfortable admitting and losing billions of popular cryptocurrencies (i.e. Bitcoins, Ethereum, Litecoin, etc.) which will never be recovered, investors are becoming more skeptical. Everyone remembers the "Skill Road" scandal which boosted Bitcoin inside the limelight but behind the scenes more negative consequences came about then positive.

The U.S. government has seized $19 million worth of bitcoins from a drug trafficker, who allegedly laundered funds through the cryptocurrency on the dark website known as "Silk Road." - International Business Times

Not only have all the scandals been hurting legitimate startups but have turned away future investors which much to offer which means the people whom are really footing the bill is the average cryptocurrency enthusiast and chances are do not have it too waste.

So what is the solution to this problem. Well, it may be as simple as you would think. Stop wasting money on startups! Not every startup with an idea on how to make cryptocurrency adoptable will succeed. Sure, the company may have a well crafted website with nice layouts, an exceptionally written white paper and listed on an exchange but chances are there's another like which has already failed and been delisted by many exchanges. In many cases, you will never see your original investment returned back you. I have never been scammed but witnessed first hand accounts and investors are still trying to recover their money. As well, not every startup is out to take investors to the cleaners and make a quick break for it. So if you're going to invest in startups here are some important tips:

• Never invest in a company who doesn't have a proven track record.

Basically startups are groups with ideas applying to you for a loan. So you should treat them as such despite their passion and enthusiasm. Startups know the average cryptocurrency enthusiast is driven by passion for mass adoption so it becomes easier for them to appeal to you and come off sounding sincere but you should know in the end it will cost the average investor more. For example, when you apply for a credit card there's a process which takes place which involves the bank or financial institutional conducting an investigation on you in terms of how competent and trustworthy you are an individual. They want to know are going to scam them and if so, will there be a definitive 99.9% chance they will be able to recover their money.

• Never invest more than you can afford to lose.

Chances are many of us do not gamble. All it takes is one over zealous bet and one bad hand on the poker table and you can kiss your retirement plans goodbye but the same can be said for startups. When you invest are taking a risk, gambling on a company and betting they will become success so you can double your money or at least break even with some interest. In a sense you're searching for "Fools' Gold". For example, Bitcoin took seven years to "Hit The Moon", so why how would a company anyone barely knows be able to promise or guarantee you a "Moon Hit" in less than a year. It's simple not possible.

In conclusion, common sense and patience are the most important tools investors have. Common sense, early investors in Bitcoin didn't begin enjoying "Moon Hit" gains till at least five years after their initial investment. Patience, startups are profiting off "The Hype", so while they continue to try, you can protect yourself by playing it smart.