A Cautionary Tale: Bitconnect's Fall
To all the people who are taking out loans and putting them into crypto, please be careful. It is so sad when something like this happens. Don't invest what you can't afford to lose and be careful who you listen to. There are several Youtubers who put a lot of money into BitConnect and advised their followers to do the same.
It is important to be mindful that your favourite Youtuber might have millions of dollars in the bank and any money they lose is just profit. If you aren't knowledgeable about what you are investing in then perhaps it is best to wait and do some research before you invest.
Bitconnect is definitely set up as a Ponzi with all these people having to get referrals in to make money. There is always the greater fool theory that holds up.
I recommend If anyone is doing anything in the crypto space and putting money into it: spread your risk and diversify holdings.
absolutely. I have three different 'portfolios' within my crypto portfolio. 1) My trading account 2) My long term holds, and 3) My ICO tokens. I spread my money out and when i make profits from trading I transfer it to one of my other 'portfolios'.
It is so tempting to put XXX amount of dollars into one crypto hoping it will double but that is super risky and goes against commonsense.
Bank: You want another loan?
Retard: Yes please
Bank: What happened to the 1st one?
Retard: I invested it in bitcoin.
Bank: Oh, well that can be volatile but it could bounce back.
Retard: Yeah but I invested those bitcoins in bitconnect
Bank: ... Get the fuck out of my office.
Once I have a good chunk of in Coinbase, I will start transferring them into a hard wallet. Plus if Coinbase goes down, cryptos will go down with it, I don't think Coinbase and the people that work at Coinbase don't want to be next Bitconnect or Mt. Gox. I remember the Mt. Gox issue. Yet, Coinbase stands nice and strong. Exchanges will come and go. But I do have a lot of trust in Coinbase, will I have my life savings in Coinbase, no. I will store it into hard wallets.
I agree. I have a Ledger Nano and whenever one of my coins doubles I sell half and take profit. No exchange is 100% safe and a lot of people keep money on them in the hopes that maybe they will get in on a dip and sell on a moon. Realistically, myself included, most people don't really understand how to trade crypto to be consistently profitable. For 95% of people their best option is to buy coins and put them in cold storage for a year.
People should take comfort in the fact that we are so early in the market that 5 years from now they might be sitting on a few 100k that they would have lost had they panicked and sold.
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