A cat with a crown to signify the KING in TOWN.
Introduction
Let’s be honest here. A lot of people are in the Crypto space mainly because there’s huge profits to be made. IF done right legally or illegally. However that does not discount the fact that there are also huge risks associated with it. From Scammers, Pump and Dumps, Cyber Theft, Accidental transfer to a dummy address, Ponzi Schemes and many more. Hence it is always very important to do your due diligence and research in this space since it is still referred to as the “Wild Wild West”.
Ever wonder who are the bigger winners in this space that can weather the storm despite all the risk and flaws in this space?
1. Crypto Exchanges
The House always Wins! Similar to gambling in Casino, as long as there’s people constantly playing, they will always Win you in the long run.
As the Crypto exchange does not differ much from the stock exchange in the US or any other exchange for that matter, they will be the biggest winner.
Ever wonder why is there so many exchanges popping up ? Forex exchanges and now more recently in the Crypto space? Because there are tons of micro transaction fees to be made from each transaction.
Regardless whether you make money or lose money, the Exchanges make from the spread, transaction fees and listing fees to name a few. Scary isn’t it?
Acting as the middle man in any trade or business is the most profitable business even better if it is monopolized by one or a few entities at large.
Think Headhunters for the Human Resource Recruitment business.
Think Big4 for outsourcing their Accountants.
Think Software house for outsourcing their Tech.
and the list goes on and on.
2. Scam Coins
Did you know about the previous ICO scams that was happening around 2016–2019 ? It raised closed to $13 billion nationwide where about $1.3 billion of the project were scams. That's an alarming 10 percent!. Some of the potential scam tactics used are Copy Paste projects, Fake coins, Fake Exchanges, Ponzi Schemes and many others.
Especially currently with the buzz of Yield Farming, Liquidity Mining and insane returns of almost up to 10% per day and annual returns amounting to few hundred thousands percent, its no wonder that a percentage of them would become victims of such scams. There are plenty of websites listing out the scam coins out there Altcoins, 99 Bitcoins and Coinopsy to name a few.
As scam artists are becoming more clever in carrying out their heist, as an Investor in this space, ensure that the proper due diligence is carried out to prevent the lost of funds.
- Making sure that they have an active group on various social media channels as most of them have a Website, Whitepapers, Telegram, Twitter, Website, Reddit.
- Participate in their forum discussion and see if there’s any admin in the group chat that are actively managing the chatroom and see what the other participants are saying about the coins.
- Just use plain old Mr Google to search for the specific coin plus the word ‘scam’ behind it, you never know you might find something interesting about the company.
3. Founders of Crypto Coins
Did you guys know that there are so many rich founders that even overtook Mark Zuckerberg Founder of Facebook? Yes, that’s right. From Ripple and Ethereum Founders to Exchange Founders as well. There is a huge extensive list of them here if you’re keen to find out.
Why?
Because they are basically their own “bank” in summary.
Think of it this way, they basically use some of the blockchain open source code which are public, modify it and start issuing it out as currency tokens and give it a name.
Technically, even YOU and I can build our own token if we want to.
Of course, we need to have some innovation in terms of the product and the WHY as to why people should invest into our product. Else, we will end up becoming like everyone else in the market with no product differentiation.
As a Founder of such coins especially from the Silicon Valley, it comes with great responsibilities and risk as well. As certain countries do not take Cryptocurrency lightly, you might be searched by the authorities depending on which country you are located. There’s also product innovation that needs to be there to ensure that the product that you are building is trying to solve an issue. Without that, no one would gain traction or even look at your coin that you developed as the competition is intense. As the days goes by, more and more coins, farms, solutions, scam coins are popping out left and right.
At the end of the day during the consolidation stages, only the strong will survive and 99% of them would ultimately fail similar to the business world.
Summary
It is truly an interesting time to be alive in this current Information Age.
Let’s see what will blockchain and decentralization does to the Payments space and later on expand to other sectors as well.
Even if we are not one of them, as an individual investor we can still find for the right project to invest. The upside potential of altcoins is endless and the potential to multiply our investment portfolio up to 100x our money is present.
For those who are in this for the long haul, HODL as we say it and Dollar cost average during the dip.
For the more enthusiastic one, explore the DeFi space, Yield Farming, and even NFTs.
If I managed to brought you some value, appreciate if you can share, like, follow or support me to improve my content.
Thanks for reading!
“Cover down side risk upside will take care of it self”
HODL→Hold on for Dear Life(Meaning never sell and hold until you DIE)
Kimican90
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Disclaimer: This is not financial advice. Please do your own research. As Crypto is a highly risky and volatile instrument of investment the risk and reward is different for everyone. Invest at your own risk and only what you CAN AFFORD to lose.
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