As we say goodbye to 2019 and enter 2020, we can begin to see a familiar trend take hold of the crypto industry. The internet is filled to the brim with both severely optimistic and catastrophic statements regarding the future of crypto, which points to a much larger problem at hand. Those who are just coming into the space may be more susceptible to relying on bad investment advice or potential crypto scams. If you’re looking to improve your crypto knowledge and safety in this next decade, let’s take a look at what you should be wary of as we enter the new year.
1. Cryptocurrency Price Predictions
There are a lot of “experts” out there that believe they hold the key to understanding the future prices of Bitcoin and other digital assets. They then share this information online via their social media channels and people often listen to this advice, implementing it into their own trading strategy so that they don’t miss out on the next big price jump or dive. The problem? While there are some great analysts out there, you should never take investment advice at face value, especially if it is given to you by someone who is not a financial expert.
When you pay attention to the noise that tells you Bitcoin is going to reach $30,000 in 2020 or that the entire crypto ecosystem is going to completely fall apart, you put yourself at risk of losing the money that you have invested. Always proceed with caution when you invest and avoid any websites or sources telling you what you should be doing with your money that do not have the proper background or authority.
2. Potential Security Hacks and Scams
Where there is money, there is the opportunity for malicious characters to come in and find a way to steal it from others. Over the course of this past year, we have seen this happen in many different ways, from the Binance hack that stole approximately $40 million away from the popular exchange to the shockingly abundant number of ransomware cases in which hackers would lock and erase data unless the requested amount of Bitcoin is paid out. Although these issues are bad enough on their own, there are always new scams being invented to steal away crypto from investors. If there is anything to focus on when we enter 2020, security is certainly at the top of the list.
3. New Platforms Promising Profit
Although we are out of the age of ICO’s, which have only proven over time that fraudulent projects are easy to launch and can still attract investors, that doesn’t mean that every project that comes out is going to be one that we can put our faith in. In general, it’s best to only trust platforms that have already demonstrated their reliability and have established themselves in the industry. When it comes to new platforms that are promising profits or offering their services, approach with caution and only invest if you feel safe.
While the cryptocurrency industry has certainly come a long way from when it first began, there are still some dangers for both new and experienced investors. If you are looking to get the most out of 2020, keep the above points in mind as you continue to use crypto in this new decade.
