A Guide to Preventing Cryptocurrency Scams

Due to the recent surge in Bitcoin prices, the long-dormant cryptocurrency market has become popular again, and miners have returned to their old jobs, causing the prices of mining machines to rise again.

Many newbies rushed into the market to speculate in Bitcoin as soon as they saw the sharp rise in Bitcoin prices. Many people entered the market in excitement and came out in disappointment, becoming what Li Xiaolai called "leeks" and "SBs."

The current cryptocurrency world is still a chaotic place. Various virtual currency funds are emerging one after another, and there are also many exchanges that have run away. The old leeks are cut, and new leeks grow again. Wildfires cannot be extinguished, and spring breezes will bring new life.

Many people in the cryptocurrency circle are shouting that Bitcoin will be halved next year, and Bitcoin will definitely rise sharply after the halving. However, driven by interests, Bitcoin is constantly forking, and it is at least questionable whether Bitcoin is still the same thing as before.

Before the legal issues of virtual currency are completely resolved, the development of virtual currency is not optimistic. At present, it is half-hidden, like a woman with bound feet walking, how can it develop rapidly? If you don’t have a mine at home, please be careful and think twice before you act.

For those who are already in the cryptocurrency circle, I have the following guide to prevent being cut off. I am an old leek, so I still have a little say. I hope that those who come after me will not fall into the same pit as me.

1. Invest in mainstream coins, and invest less or not in other coins

In the current cryptocurrency world, new coins are issued in a few minutes, and new exchanges are launched in a few days. There are many real and fake coins, real and fake coins, and chaos everywhere. There are thousands of dazzling coins. Who can tell which one is real and which one is fake? A coin that rises 10,000 times today may fall 30,000 times tomorrow. Since it is impossible to identify whether it is a virtual coin, then invest in relatively safe ones. Mainstream coins such as Bitcoin have been struggling for more than ten years. Compared with other currencies, they are of course much more mature. There are also ETH and EOS, which are currently stable. XRP, TRX, etc., because of the huge trading volume, you can also take a look.

2. Buy when you should, sell when you should, buy low and sell high, and avoid greed and hesitation.

The same principle applies to stock trading, which is to buy low and sell high. But be careful not to be greedy or hesitant, and set stop-loss and take-profit lines. There is no price limit for virtual currency, and trading is non-stop for 24 hours. If you don't set stop-profit and stop-loss, you are courting death.

3. Find a big exchange and refuse all kinds of promotions and rewards

Buy coins on large exchanges, and avoid all kinds of promotions and rebate temptations, because you will find that there are so many exchanges that you don't know how to choose. All those who give you rewards are interested in the fiat currency in your hands. Remember, you can never beat the platform, they are the dealer. Once a small exchange has problems, such as being stolen by hackers, it is easy to run away. Large exchanges are deep-rooted, and the bosses of large exchanges are all well-known figures. They can't run away even if they want to, and can only run the business with their heart.

4. Watch more and move less

The currency can fluctuate greatly. If you sell it when it drops, the exchange will continue to absorb the transaction fees, which is the same as stocks. The transaction fees for currencies are generally very high. If there is no big drop, it is better to do less.

5. Invest your spare money

Use your spare money for investment, and avoid borrowing money to play with coins. The risk of coins is much higher than that of stocks. If you borrow money, the risk will be magnified N times instantly. All investments that do not consider risks are risky and foolish. When investing, risk always comes first, and this applies to all investments.

Author: Sang Lele Link: https://www.jianshu.com/p/54cc2d0dbc75
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