Most cryptocurrency investors end up losing a lot of money. That is essentially what happens.
They try to find the best crypto investment advice on Twitter by randomly following some accounts, buy tokens simply because an influencer told them to do so, and panic-sell when everything crashes. Afterwards, they complain about crypto being a scam.
We have been the crypto news source for a long time, and thus we have witnessed this tragic story countless times. Smart people - engineers, doctors, business owners - wasting money on projects they don't understand.
It is the reason why we came up with this system. Not because we want to be heroes, but because we are tired of seeing the same mistakes being made over and over again.
Understanding The Demand For Investor Education In Crypto
I can tell you one thing that I dislike so much that people are treating crypto as if it were the same thing as buying a share in Netflix.
It's just not the case.
Traditional markets have features such as circuit breakers, regulations, and safety nets while crypto doesn't have any of these. Take for instance the case when prices can go down by 40% just because someone tweeted something that was misunderstood. These are the times when people can lose a lot from crypto projects that disappear overnight.
I remember the 2017 bull run and how it was a massive rally that everyone thought they were Warren Buffett just because everything was going up. My barber was giving me investment advice and telling me to buy some random altcoin. A college kid that I knew took a student loan to buy "Moon Token" and I could not understand what he was doing.
So, what do you think happened when the music stopped?
The pain is really there. Watching your portfolio going down at a much faster rate than an ice cream melting in summer will definitely play with your mind. Most people are not strong enough to go through this. They make emotional decisions when they should be logical ones.
Still, the market volatility is the reason why there are such great opportunities to make money quickly. The only way not to suffer from it is to be prepared rather than caught off guard.
Useful Reference: https://mastodon.social/@coinminutes
The Pillars of the CoinMinutes Framework
Our model revolves around five core ideas that provide an explanation for people's continued losses of money.
You wouldn't run a car without knowing how the brakes work, right? The same logic is used here. We clarify what wallets are, what private keys are, and how transactions are done. Are you thinking it's dull? Possibly. Nevertheless, it will cost you if you wrongly send $10,000 to an incorrect address.
Never, under any circumstances, place an investment of more than what you can totally afford to lose. It is a very simple idea yet people are constantly disregarding it. They will take their rent money and use it to buy the latest meme coin because "it's going to the moon."
You should definitely ask these questions before purchasing anything: What problem is this product solving? Who is actually making it? How does token economics work? Is there real adoption, or is it just speculation?
Each and every psychological bias that you have is amplified by Cryptocurrency. Greed makes you continue to hold for too long. Fear makes you sell at the lowest points. FOMO makes you buy at the highest points. We give you mental frameworks that help you recognize the presence of emotions when they are driving your decisions.
Stay updated or be left behind. Crypto moves as fast as the internet. What was right last month may be completely wrong today. There is always a constant stream of new projects. Even when you are sleeping, regulations are changing. Technology is getting better very fast.
We do not stop updating our content and we are always creating new places where real traders and investors can talk about the markets and share their views.
Fostering Critical Thinking and Due Diligence
The cryptosphere, if you ask me, is the most faking circus of all. That is, by deceiving, conning, and talking without knowing, crypto doesn't deliver much value.
You should be the one to figure out which is the villain, which the swindler, and which the fool.
Moreover, do not trust the things that you check. This is not a Bitcoin motto only - this is the way you should treat every single piece of information in crypto. Somebody says a project "has partnerships with major banks"? I want to see the real, official announcement. An influencer promising returns without any risks? Run away from there immediately.
We put the people in charge of tracing each piece of information back to ground zero. Yes, official product manuals are much better than YouTube videos. Company press releases are a lot better than random blog posts. Always go for the primary sources rather than the secondary ones.
Scams rely on easy-to-grasp templates. Once you get acquainted with the warning signs, scams reveal their nature very clearly. Some of the signs are: promise of the moon and stars; usage of coercion tactics; fake testimonials creation; and celebrity endorsement without delivering any actual value.
Community Support and Peer Learning
Trying to learn crypto on your own is similar to trying to understand a foreign language only by using a textbook. In a sense, it's possible, but it is way harder than it has to be.
As a community, we are like an ecosystem with various sub-communities each focusing on a different aspect. Newbies are certainly able to ask questions and get answers without being reprimanded. Skilled traders can reveal their intricate trading strategies without having to explain what a blockchain is every time.
Theoretically, most of the learning is supposed to come from the guide, but actually, it is the people's experience that has the most impact. Not only the wins - the losses as well. We offer a platform for people to talk openly about their mistakes and the reasons for them. Those experiences teach far more than any theoretical guide ever could.
Adapting to a Dynamic Industry
The framework that was used during the last bull run might be of no use today as crypto doesn't stay still.
We had to quickly put together educational content when DeFi exploded in 2020 about yield farming and liquidity pools. We were forced to explain marketplaces and royalties when the NFT became mainstream. Now, we are talking about layer 2 solutions and cross-chain bridges.
It is not necessary for every trend to get the attention. The majority of new projects are simply versions of the existing ones with slightly different marketing. We separate signal from noise and concentrate on the developments that matter to investors.
Indeed, regulatory changes have the power to completely change the landscape overnight. If China bans mining, Europe proposes new rules, or the SEC makes a statement - any of these can cause markets to move significantly. We monitor these changes and provide an explanation of what they indicate for your portfolio.
Find More Information: The CoinMinutes Mission: Quality Over Quantity in Crypto Coverage
Conclusion
Almost all crypto education programs claim that they will make you rich quickly. We, on the other hand, promise to help you save your money from unnecessary losses.
Our system of work is certainly not going to make you a millionaire in a flash. What it will do is help you to develop clear thinking, proper researching skills, and correct risk-taking behavior.
That is exactly what we are doing at CoinMinutes. One investor who is educated, at a time.
