The Dark Side Of Crypto YouTubers
The Worst Financial Advisors
Investing is a process that many don’t take seriously and take financial advice from Twitter, Reddit, and, worse of all, YouTube.
It needs time and research, yet, most of the current retail and part of the institutional investors are just pouring money to crypto, while having performed poor research.
A much better approach is to select those cryptocurrencies that have a working product, a sustainable vision for mass adoption, and long-term potential in the digital economy.
The sustainable growth of a cryptocurrency is defined by a list of features and developments that can withstand the test of time.
We examine how the popular Crypto YouTubers may not be the most reliable source when the topic is investing advice.
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What Do Crypto YouTubers Have To Offer?
Crypto-YouTuber is a temporary job for some of them, but also one that enriches the most popular in many more ways than just YouTube payments.
You’ve probably heard of YouTubers talking about multiple streams of income. And most of the streams are not ethical at all.
In terms of investing and financial analysis, these guys will follow the trend and also get compensated for promoting and presenting various projects.
They only act as influencers, not as educators.
Crypto YouTubers forget to mention which part of their content is sponsored.
The influence of Crypto YouTubers is a serious threat as they direct their followers to terrible financial decisions.
Approach the advice of YouTubers with skepticism.
As we all know well, the vast majority of traders are underperforming.
It is common knowledge that approximately 90 to 95% of traders lose money in the long run. This number is alarming.
I am not sure if some of the popular crypto-traders are getting paid by whales or exchanges to provide wrong information, but it appears that some are just doing that.
It takes time to notice, but these popular content creators are just following the trend. No, they won’t obey actual technical analysis. The trend for YouTubers is to follow and copy whatever their competitors do, which was the mainstream thing.
The mainstream. This is what all YouTubers do thinking they can succeed. They only follow the mainstream as this is also what YouTube rewards.
Whatever is mainstream works for YouTubers.
Crypto is up, they all become bullish. Altcoins pump, and they all become experts in various altcoins. A random altcoin is rising? They all become experts in it and talk about its potential for hours.
The question we should ask when following the advice of YouTube traders is why any trader or investor would become a YouTuber if they are so successful.
Do not expect to find a treasure by following the same path a million others did.
Pave your way against the mainstream and follow the path nobody else visits. The best opportunities are not with the mainstream.
The trend is an indicator, but short-term trading is speculation that leads to almost certain losses.
Recognize that the short-term trend is more like gambling, so no, it is not wise to day-trade unless you have proven profit throughout the years.
It is the same with everything crypto and in real life. The narratives, the promotional catchphrases, marketing, and the communities.
After enough time (and research), we learn better how everything works. We stop just replicating words and narratives but think for ourselves and verify.
There is no need to become a developer to invest. No investor can read the code and understand it completely. Even an audit for a smart contract needs a long time of consideration and conversation with the devs to understand the intentions. Just reading the code alone can reach to wrong conclusions.
After enough time, we have certain expectations from cryptocurrencies, and we don’t just contain their potential by comparing them in fiat valuation. The risk is always valid, maybe what looks like an amazing project can fail for several reasons YouTubers will not even care to find out.
It could be inside issues and fighting between different sides, it could be the decision-making process was flawed, or the inability to locate centralization issues.
In Conclusion
A Crypto YouTuber will never care if a cryptocurrency has a state-of-the-art network, developments, and an increasing user base if the network is scaling or even working or not.
They want BTC maximalists as followers, so they always discuss BTC as better than anything else, while, in fact, BTC stagnates in technology and slowly becomes obsolete.
YouTubers try to be versatile, excuse their mistakes, or not even care if they make any, as they are not really investing in any cryptocurrency.
In gambling terms, popular YouTubers are always -EV when it comes to financial advice, but sometimes they offer great entertainment value.
As a conclusion we can keep in mind that even though some crypto YouTubers can be entertaining, it is wise to approach their financial advice with caution.
Cover Picture on Pixabay
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Originally published at read.cash (Rewritten for Medium)
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● read.cash ● noise.app ● Cashrain
● X.com ● Medium ● YouTube
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