An influencer is a popular person with a devoted following on social media, usually focused on speaking out on a particular subject, such as cryptocurrency. Cryptocurrency influencers can provide valuable insights and opinions for investors, but blindly relying on their advice can have a negative impact on your financial well-being.
So why shouldn’t you trust crypto influencers?
1. They are usually paid to say what you want to hear
Cryptocurrency developers sponsor cryptocurrency influencers and reward them heavily for promoting their projects. They pay influencers to say what they want you to hear, true or not. Therefore, even if they invest a lot of money in a coin or project, it does not guarantee that it will bring a large profit.
These influencers with little or no knowledge of cryptocurrencies are usually given a script of what to say about the cryptocurrencies they want them to invest in.
Cryptocurrency influencers are known to hype (cryptocurrency shillings) new and speculative assets, often highlighting the prospect of large profits and creating a rosy picture of the asset’s potential. draw.
While crypto influencers may appear to be avid proponents of various cryptocurrencies, it is important to realize that their endorsements do not necessarily reflect personal investment choices. .
As mentioned earlier, they do not invest in a particular aspect personally, but are paid to promote a particular aspect.
Some crypto influencers engage in crypto pump-and-dump schemes, using social media to sell altcoins, tokens, or coins that have no real immediate purpose. Spread interest to your followers.
Creating buzz about an asset artificially inflates its price. When the price rises, they sell their holdings, causing their assets to crash and leaving their followers at a loss.
Misleading advice to buy these coins often crashes in the end, which shows why information from cryptocurrency influencers can and should not be trusted. .
4. They are usually not cryptocurrency or financial experts
Crypto influencers may not have the knowledge or research skills to provide accurate information. Its content focuses on short-term market movements, quick trades and immediate profit opportunities.
They spare no time in researching the risks involved in buying a particular coin at a particular time. Cryptocurrencies are highly volatile and unpredictable. Even cryptocurrency experts don’t always get it right.
Cryptocurrency influencers are not authorized to give financial advice. Therefore, any cryptocurrency product that promises a 100 percent return guarantee is definitely a red flag. They may have made money off cryptocurrencies, but that doesn’t mean they’re cryptocurrency experts.
5. Scammers can pose as cryptocurrency influencers
Since the cryptocurrency space is unregulated, anyone can easily pose as a cryptocurrency influencer or expert without formal qualifications. Social media platforms such as YouTube and Twitter have several self-proclaimed cryptographers providing crypto content.
These scammers go so far as to create sponsored posts that promise guaranteed earnings. They may claim exclusive access to insider information, secret strategies, or specific projects.
For example, we may offer free perks, private groups, trading courses, or referral links. They may solicit participation in airdrops, ICOs, or presales that require funds to be sent to an unknown address or private keys to be provided. These are all scams aimed at stealing money or personal information.
6. You can’t hold them accountable
Influencers cannot be held responsible for poor investment results. Their analysis and predictions are largely based on subjective opinion rather than foundational research.
The fact that they are not qualified to give financial advice is often implied by disclaimers in their content, but that they are not legally obligated to account for the losses suffered by their followers. means
If you rely on their advice, do so at your own risk.
6 Places to Get Cryptocurrency Investing Information and Advice
It must be emphasized that it is imperative to explore multiple sources and conduct your own research when looking for cryptocurrency investment information and guidance.
We’ve listed a few places where you can get information and advice about investing in cryptocurrencies.
1. Reliable cryptocurrency exchange
A cryptocurrency exchange is a platform that allows you to buy, sell, trade cryptocurrencies, and execute transactions with other users.
Some centralized cryptocurrency exchanges, such as Binance, offer educational resources such as market data, charts, news, analysis, and webinars to help you learn more about the cryptocurrency market.
2. Trusted cryptocurrency news sites and investment blogs
Reading, listening, and watching the latest news, analysis, and market trends in the cryptocurrency space makes it easier to make informed investment decisions.
News sites provide up-to-the-minute reports on the latest news, while crypto-focused blogs and financial news platforms offer valuable insights on investment strategies shared by professionals and enthusiasts, as well as upcoming events and market updates. , regulatory changes, and other information. A new project starts.
3. Crypto Forum with Experienced Investors
Forums serve as an excellent source of information. Also, there are many online communities where people discuss cryptocurrencies, but you should always visit the best crypto forums.
Join the crypto forums to hear and learn about market trends in the cryptocurrency space from seasoned and seasoned crypto experts and other investors.
4. Crypto Podcast
Listening to cryptocurrency podcasts is a great way to improve your cryptocurrency knowledge by learning about the fundamentals, strategies, tools, and best practices of cryptocurrency trading and investing. To help you learn more about it, we’ve listed some of the best crypto podcasts you need to watch.
Additionally, you can watch and listen to interviews and discussions with experts and knowledgeable individuals who delve into several crypto projects and investment opportunities.
5. Project official website and whitepaper
When researching a particular cryptocurrency, you should visit the official website of the project for important information about the project’s goals, team members, technology, partnerships and other relevant details.
Reading their whitepaper will give you a comprehensive knowledge of the purpose and potential of the project. Additionally, you can determine if a project is aligned with your investment goals, risk tolerance and overall strategy.
6. Social trading platform
A social trading platform is an online platform that allows you to interact with other like-minded investors, share trading strategies, track performance, and copy trades.
Follow and learn from experienced traders with a proven track record of success in the cryptocurrency market. View your portfolio, trading history, risk profile and trading style. You can also ask questions and get feedback on transactions. However, you should not just use social trading platforms. Instead, use one of the best crypto social trading platforms that offer protection, automation, and more.
Don’t Blindly Trust Crypto Influencers
Crypto influencers provide valuable insight, but it should be remembered that not all crypto influencers are investors. Do not blindly trust influencers, but review information carefully.
Don’t ride the hype for fear of missing an opportunity. Instead, do your research, follow real crypto experts, and understand the crypto space before investing.