They think that it is possible to get rich quickly on cryptocurrencies
Cryptotrader Peter McCormack analyzed the situation on crypto market and came to the conclusion that many new crypto enthusiasts come to the market with absolute certainty that they will be able to quickly get rich. According to McCormack, this leads not only to disappointment, but also to a rapid loss of funds.
Naturally, when the market is experiencing a take-off period, many new investors come to it, hoping to get an easy profit. Moreover, they write about it in all the news, and those who manage to get a good salary, tell about their success stories. But bubbles are born: it happened with a dot-com bubble, and the same was with the 2008 housing bubble.
However, crypto market does not work under the scheme of instant earnings. This is a speculative market, in which some players were able to quickly get rich. Many quickly lost all their investments. Crypto market, like any other market, is cyclical, which means that after a period of growth, the fall period will necessarily come. As it happened in 2013: on the general schedule of cryptology, this period looks like a moment of small growth, after which there was an insignificant drop.
However, in fact, in November 2013 the capitalization of crypto market grew rapidly against the backdrop of the arrival of new players who invested in bitcoin – the revolutionary new money of the future. So, by December 4, 2013 the figure reached its first maximum of $ 15.7 billion. And by December 19, capitalization fell sharply almost twofold – to $ 6.9 billion. Crypto market took more than two years to recover and reach past highs.
This situation may repeat, even though today the market for crypto currency is very different from what we saw in 2013: players have more information on it, and the ecosystem is rapidly developing and finding new uses. Nevertheless, this is a speculative market that can collapse at any moment. Of course, there are examples of how you can get rich fast on it, however, the chances of losing all investments due to poorly planned investment strategies are many times higher.
Write: Richard Abermann