Side Effects of Falling Into the Crypto Hole

Side Effects of Falling Into the Crypto Hole

By LukeB | YoungInvest | 14 Apr 2023


After finding out about the magic that is Cryptocurrencies, Blockchains, and Web3, all my future investment strategies have gone up the drain. There is something about Crypto that captivates more than stocks, bonds, and ETFs. 

Mainly high volatility and rising opportunities.

Investing into the technology sector has long proven to be successful with great returns. After all, it's the future of where the world is heading to. Crypto, among other things, is one of the greatest technologies that may change the world. However, after learning more about it, getting further involved and keeping track of development and prices, there is something about Crypto that affected me in a negative way.

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One of the most important ones would be becoming too involved with projects and ideas that may seem promising and revolutionary, but actually are the complete opposite. Play-to-Earn games and other Web3 applications appear to be the future of technology but so far, there is hardly anything that picked my attention. Unlike in the past, most P2E games like Axie Infinity or StepN showed much promise before falling rock bottom. Although their presence is still there, I would never try to get involved now with unsatisfactory ROI. 

The same goes for Web3 applications. Most of them seem very interesting and nice but trying to get involved made me lose more than I invested. One of the key problems I noticed with using your crypto is:

- Gas Fees for Blockchain transfers generate more losses than returns (That is a direct stab at Ethereum)

- Crypto Transfers get lost repeatedly due to faulty links, network problems, and too diverse systems

- Decentralized Finance Applications pose too many risks and unpredictability leaving investments up to chance

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After trying out many different things and uses for Crpyto, I came to the conclusion that the most efficient investment strategy is the simple and easy buying of currency on crypto exchanges and selling them after sufficient market movement. Other than that, it is better to not do anything with Crypto at all. 

Web3 and decentralized finance are interesting and exciting but keeping investments with crypto boring and simple is the best method to grow your wealth and reap the benefits of this new technology. Although this may change in the future, there is no better solution for now.

 

 

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LukeB
LukeB

College student who likes blogging about crypto and investing with a touch of humor in my writing.


YoungInvest
YoungInvest

This blog will be all about investing and crypto for the younger generation.

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