TIPS FOR CRYPTO BEGINNERS
As you can see on the big disclaimer picture, I´m not a financial advisor and everything is just my personal opinion and experience. Nevertheless, if you are new to crypto or want to start with it, you should read on. It´s one mission of FrankCoin to support new people in the crypto space.
The most important thing first: Crypto is a high-risk space! You should only spend/invest money you can affort to lose! Even so called "safe" stablecoins are NOT safe. Best example is the Terra LUNA incident: https://www.editorji.com/business-news/cryptocurrency/terra-usd-and-luna-the-whole-fiasco-explained-1652346670378
TIP 1
Always do your own research!
It´s your money, so you should take your time. You wouldn´t buy a rotten apple in a supermarket, right?
TIP 2
Crypto has become more regulated over the past years, but you should still beware of:
ICO´s (Initial Coin Offerings)
Investors can buy into an initial coin offering to receive a new cryptocurrency token issued by a company. It´s a popular way to raise funds for crypto projects. Example: For $100 you are receiving 1000 new tokens called "MakeYouPoor" from the "Best crypto company" company. Now a few things can happen:
- The "MakeYouPoor" token will never be listed on an exchange and so it´s worthless
- After the company finished their ICO the communication suddenly drops a lot until all managers completely vanish (rugpull)
- The management is just bad and after some months have passed, they will go bankrupt and your token will become worthless too (even if it is listed on an exchange)
Tip 3
Beware of fundraising in general
There are other ways than ICO´s to raise funds. Be careful on all of them. It improved a lot in recent years, but you can still be scammed.
Tip 4
Beware of Memecoins
-> especially dog and cat coins on the Ethereum / Binance / MATIC / Solana blockchains
Tip 5
Beware of (privat) Messages per Mail, Telegram, Twitter, Discord, ...
In crypto most people want to scam you, they want to steal your money! In Germany we have a saying: "There is no open talk about money."
Do not trust anyone!
Tip 6
Beware of "Bad Blockchains"
Blockchains which are programmed/coded with lots of mistakes and errors (for example Solana).
Tip 7
Beware of NFTs
Non-Fungible Tokens are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. You could call them "electronic/virtuell pictures".
-> Beware of NFTs on the Ethereum / Binance / Solana blockchains, for example: Bored Ape, Crypto Punk, Mutant Ape, Pudgy Penguin, Sappy Seal or especially NFTs on opensea.io
Tip 8
Beware of Margin/Leverage Trading
On some exchanges (where you can buy crypto) you can do margin/leverage trading. Example: You have 1 Bitcoin, but with a leverage of 100, it would feel like owning 100 Bitcoins. If the Bitcoin price increases by only 1%, you would gain 100%. That means 2 Bitcoins in the end. If the Bitcoin price decreases by only 1%, then you would lose everything. Only for true experts!
Tip 9
Beware of Your Own Temptation
Don´t let yourself seduced. Example: You have decided to stake coin X, but coin Y is "pumping" /price increasing like crazy. Now you are switching to coin Y, but the coin is "dumping"/price is falling like crazy. -> Sticking to your old plan with staking would have been the right choice.
So you shouldn´t invest in crypto because it´s too dangerous?
Not everything in crypto is "bad". There are thousands of awesome NFTs with beautiful artwork from true artits, which just want to make people happy. Some NFTs even have a use case in games, give you airdrops or other special perks. Moreover there are memecoins (FrankCoin, anyone?) with real use cases and an honest business model. Then again, every new innovation is dangerous at the start (keyword: travel by ship or fly by plane). You need to choose a project / blockchain / coin which has:
- Trustworthy team
- Good programming
- Future
- Cooperations
- Exposure, which means you can easily buy/sell it on trusted exchanges (Binance, Gate.io)
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Nevertheless, even if you follow these tips and remind everything, you can still be scammed or lose all of your money. That´s crypto, that´s life. Trust me, everyone in crypto has gone through
it.
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As for me, after 6 years in the crypto space, I´m now "stuck" on the Neo blockchain. >> https://neo.org
It has:
- A very friendly community, where you can talk with developers first hand - even though it´s a billion dollar blockchain
- A promising future and many cooperations
- Low transaction fees and high transaction speed
- ALL ("all in one, all in Neo"): INTEROPERABILITY, NATIVE ORACLES, SELF-SOVEREIGN ID, DECENTRALIZED STORAGE, NEO NAME SERVICE, ONE BLOCK FINALITY, BEST-IN-CLASS TOOLING, SMART CONTRACTS, MULTI-LANGUAGE
- Awesome projects built on it, for example: Dogerift / flamingo.finance / nudes.army / ToTheMoon/ Forthewin.network / Somniumwave / NeoDashBoard /...
- Exposure and is listed on Binance, Gate.io and many more trusted exchanges
- FrankCoin is built on the Neo blockchain
Want to know more about Neo?
Then you can press the button below > Read More in "How to NEO" <