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Paradise For Scammers

If we look back since Bitcoin was launched, and what has happened with and in the crypto world, we can say that it has grown explosively. It has certainly been an opportunity for people who got in early to become financially independent. In contrast, other people have lost everything and generally dismiss crypto as a great paradise for scammers. I still hear around me that crypto is a scam, that crypto has no future, and that crypto is not worth more than what a fool will pay for it. Why do people still think that? Crypto has been around for almost 20 years now!

Now, in all those years, there have been enough events that shook the entire crypto world to its foundations, and then so hard that those shocks even managed to penetrate the world outside of crypto. As soon as there is negative news to report about crypto, the media is of course only too happy to join in. So let's put it kindly, the fraud and missteps within the crypto world have certainly not contributed to a positive image for many people. The greed among crypto owners should not be forgotten either, because this too can contribute to a negative trend within crypto. So all in all, enough points of attention for crypto owners to think about how the general perception of crypto can be changed from SCAM to POSSIBILITY.

Back To The Basics

To explain it properly, I have to go back to a few basic principles. Many crypto projects are beautiful on paper. You know them, those white papers that are full of big words and promises such as the latest technologies, revolutionary applications, and opportunities to improve systems that we have been using for decades. But in the end, these are all empty phrases and the reality is that in nine out of ten cases, almost all projects make big promises in those white papers but then can deliver little to none of them. Unfortunately, for most projects, it remains just nice talk. As you know, talk is cheap, and in the end, you see that investors lose their confidence in the project and, if necessary, leave the project at a loss. People often think after the first time that they were just unlucky, but after the second time, they lose confidence in crypto in general. So the underperformance of many crypto projects certainly leads to distrust and ensures that people see the entire crypto world as a big paradise for scammers.

Pump-And-Dump

Now this is not the only thing we have to deal with in the crypto world. There is also something called pump-and-dump schemes. That this makes the situation even worse seems obvious to me. Anyone who has never been a 'victim' of a pump-and-dump here raises their hand. And if you raise your hand and are even lucky enough not to know what it is, then a very quick explanation to ensure that you do not have to become a victim of it. Pump-and-dump is nothing more than a group of large investors who buy in bulk on an insignificant crypto. They create hype via influencers, Twitter, Reddit, or wherever. And that is how they ensure that the price shoots up. You get in because of the FOMO that is raging through your blood. With you and many others, and when the price has become high enough due to all your purchases, that select group that started the pump dumps their entire bag of tokens on your head. The price collapses and you are left with a bag of worthless tokens. It is clear that this not only causes financial damage but also certainly contributes to people thinking that crypto is a big scam.

Lack Of Regulation

And as strange and contradictory as it may sound, the lack of regulation is another big disadvantage for crypto. Of course, I know! The greatest charm of crypto is the freedom! How can I then say that the lack of regulation is a disadvantage? Yet I say it because that same freedom ensures that there are hardly any rules to protect us from bad projects. When things go wrong and there are no legal consequences, people quickly get the idea that the entire crypto market is one big, unregulated playing field for scammers. And for many people, crypto is too much to handle due to the lack of regulation. With financial freedom comes great responsibility, and many people do not realize this. When they lose their crypto due to their negligence (not keeping keys and passwords safe), they do not blame themselves, but 'crypto' gets the blame. It is far too complicated.

Greediness

Another important point, and far too often ignored, is the greed of investors themselves. There is an old saying that goes: "Pigs get fat, but hogs get slaughtered." In other words, it is fine to make a profit, but if you get too greedy, you will sooner or later get caught. I see it so often. euren. People do not invest because they believe in the technology or because they see that a project adds something valuable, but purely because they expect the price to skyrocket and that they will get rich quickly. And that does not always happen, or not quickly enough for their liking. Because many do not have patience. That is certainly another point where things go wrong, greed, and wrong expectations.

Many novice crypto investors want to make a lot of money quickly. They read stories about people who have multiplied their investment within a few months and think: "I want that too!" What they do not realize, however, is that those profits often come with enormous risks. They blindly jump on the hype without doing enough research. They buy coins that have no real value or that do not have a solid project behind them. And when the market corrects, they are the first to panic and sell at a loss. This behavior contributes to the volatility in the market and ensures that outsiders continue to look at crypto with suspicion.

And let’s be honest, the greed you see in the crypto market is not much different than in traditional financial markets. The difference is that the crypto market is still young and relatively unregulated, which means the risks are greater and the consequences of bad decisions are felt much faster. What is often forgotten is that it is not a matter of “making money fast.” It takes time, research, insight, and a certain amount of restraint to be successful in crypto.

Education Is Key

So, what can we do to change these negative perceptions? First, I think it is important to be realistic about what crypto can and cannot achieve. It is not a magic formula for getting rich quickly, but crypto certainly has potential. Education is key here: the more people understand how crypto works, the risks involved, and that you should not invest in something you don't understand, the less susceptible they will be to the pitfalls.

Crypto can and will continue to grow, but it will require a certain amount of maturity and patience from all of us. We need to stop thinking that we can become millionaires in a month. And if we can do that, I think we can go a long way to restoring confidence in the crypto market and get new people in crypto.