Introduction
Following the market cleansing of 10/11, the cryptocurrency market didn't rebound. Instead, it continued its downward spiral in November, with Bitcoin dipping below $90,000 and Ethereum testing the $2,800 mark. However, for seasoned crypto investors, these are just ordinary fluctuations. They've weathered worse volatility, more brutal purges, and stumbled into deeper pitfalls.
Key Takeaways
- Learning from past mistakes in the volatile world of cryptocurrencies.
- Avoiding exchange scams and security breaches.
- The importance of diversification and risk management in investing.
- Building a solid investment strategy based on research and analysis.
- Caution regarding insider information and false promises.
Tales from the Front Lines
Mike: Struck by Exchange Collapse
Mike, an entrepreneur who entered the crypto world in 2018, shares his painful experience with the sudden collapse of the Fcoin exchange, resulting in a significant loss of his Bitcoin and Ethereum savings. Mike warns against blindly trusting exchanges that offer unrealistically high returns and advises diversifying investments and storing part of the assets in cold wallets to avoid extreme risks.
Finn: Hackers and Contracts, Lifelong Enemies
Finn, founder of Agency BlockFocus, recalls his first Bitcoin purchase in 2018. Finn shares two painful stories: one when his account was hacked and a large amount of APX tokens stolen, and the other when he lost a lot of money trading futures contracts. Finn emphasizes the importance of cybersecurity and caution when trading contracts, and advises focusing on research and fundamental analysis before investing in any project.
Beyond: A Victim of North Korean Hackers
Beyond, known on Twitter as "the analyst," entered the crypto world in 2021. Beyond shares his experience with North Korean hackers who stole all his digital assets and online accounts after falling victim to a sophisticated phishing scam. Beyond warns against trusting people who contact him online and advises verifying their identity and credibility before sharing any personal information or clicking on suspicious links.
Chong: A Victim of Relatives and Friends' Schemes
Chong, a seasoned crypto investor, shares his painful experience with schemes by relatives and friends who persuaded him to invest in fraudulent projects. Chong warns against investing in any project that he has not fully studied and analyzed and advises against bringing friends and relatives into high-risk investments.
Conclusion
Despite the risks and challenges, the world of cryptocurrencies remains attractive to many investors. By learning from past mistakes and taking the necessary precautions, investors can increase their chances of success and avoid significant losses.
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