How not to be fooled on the cryptocurrency market. Specialist: “Avoid making decisions based on rumors”

When the market reaches historical maximums, the temptation to enter “now or never” can cost expensive. Experts warn that between Hype, pyramidal schemes and cyber attacks, the only real protection remains the education and verification of each step.

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“In Crypto Square it is essential for each user to approach investments with caution and discernment. I strongly recommend avoiding decisions based on rumors or promises of fast and guaranteed earnings, experience shows us that if an opportunity seems too beautiful to be true, it is most likely to us.” Explain for the truth, Ilie Pușcaș, Country Manager Binance.

Equally, he adds, it is vital to check the legitimacy of platforms and projects we interact with, in order to protect our financial resources and trust.

“The aspect of digital security should not be neglected either: the use of strong passwords, activating two steps and absolute privacy of private keys are fundamental elements for your Crypto wallet safety. Real success in Crypto is not based on luck or misleading promises, but on continuous education, constructive skepticism and responsibility”, “ he confesses.

The risks of entering the market at historical maxims

Binance representatives point out that the moment when investors choose to enter the market can make the difference between winning and loss. At historical maxims, assessments of assets tend to be greater than their fundamental value, and the risk of correction increases exponentially. The market becomes more vulnerable, and the decreases come quickly, “as a descent with the elevator”, as experts synthesize, while the climbs are slow and gradual.

Another problem is about the reduced safety margin. Specifically, the entrance at high prices leaves very little maneuver: if the market decreases, the losses are much larger. High volatility emphasizes this phenomenon, each news or macroeconomic decision can cause sudden fluctuations.

Psychological factors weigh hard: the fear of missing the opportunity (FOMO) pushes investors to enter without careful analysis. In addition, changes in monetary or regulatory policy may have disproportionate effects at the peak of the market. Therefore, the diversification of the portfolio remains a vital strategy to reduce the risks.

How do you protect yourself from attacks and scams

In recent months, attacks on the blocks and blockchain projects have multiplied, the specialists transmit. From the vulnerabilities of some coins, such as Monero, to the attacks of groups organized by hackers such as Lazarus Group, the market has become a fertile land for fraud.

They recommend that we use only known platforms, regulated in the EU or Romania and to avoid obscure platforms, especially those that promise guaranteed bonuses or earnings. “Digital security measures must be treated with maximum seriousness: two steps authentication, the use of hardware wallets such as Ledger or Trector and avoiding any interaction with suspicious links are essential”, they explain.

Education and vigilance are the key. Phishing schemes, promises of fast profits or unsolicited offers received on social networks represent clear warning signals. In addition, the European MICA regulations will change in 2025 the way in which the exchanges and coins focused on confidentiality work.

Volatility and savings of ordinary people

Cryptocurrencies do not only influence the strategies of large investors, but also the daily decisions of ordinary people. For some, high volatility is a risk sign that keeps them away. For others, the fast winning potential is an irresistible attraction.

The same sudden movements feed the cycles of fear and greed: some buy maximum, pushed by enthusiasm, and sell in panic. Binance experts recommend diversification, long -term investments and allocating monthly fixed amounts, which can reduce stress and risk of hasty decisions. “The fact that you do not look at the quotations of crypto assets daily could be a good thing for the inner peace.”

What does “altseason” mean

The term designates the period when altcoins perform better than Bitcoin. It usually appears towards the end of a growth cycle and is characterized by spectacular climbs of alternative currencies.

Currently, we are living a different form of Altseason. ETH, BNB and XRP have been consolidated as the market “blue-chips”, with real utility and institutional adoption, as opposed to the previous altuseums dominated by speculation. ETH feeds Web3, BNB supports one of the most active blockchain, and XRP has become a solution for cross-border payments.

ETH Versus BTC: Strategies for small investors

If ETH grows faster than BTC, investors can take into account a higher exposure to ETH. At the same time, the balance between the two remains recommended: BTC is perceived as value of value storage, ETH as an asset with growth potential.

A simple rule: the share of investment in the portfolio should reflect the dominance of each currency in the market. If the BTC owns 59% of the market, the prudent investor will maintain a similar percentage in the portfolio. History shows, however, that, after BTC rallies, there are more accelerated increases on ETH and then on other altcoins.

What Reddit says about Crypto

Beyond the technical analyzes and official recommendations, the voice of users on Reddit remains a skeptical one.

A programmer synthesizes the difference between money and crypto: “We reach cryptocurrency … a dollar is useful because I can buy real things with it. It has value and is relatively stable … a bread costs $ 5 today, cost yesterday, last month, last year and it will cost $ 5 and over a year. So, but it is especially stable … cryptocurrencies are not stable. cryptocurrency is to take someone else's money. That's it. And that's shit. The only way to win is to make someone else poor. Capitalism at his home … He rewards those who entered early, taking the money from those who enter late. If people cease to enter, everything will collapse. Cryptocurrencies are a pyramidal scheme. For cryptocurrencies to be useful as money, they should not fluctuate so much. And then it would be useless as “investment”. “

Someone else tells how: “Some friends have some investments in cryptocurrencies, but it sounds a bit dubious. Meme Coins, Rug Pulls, all kinds of scams … It's full of problems. When I turn my work into money, I need more stability than the cryptocurrencies at the moment can offer.”

Another user refers to the Line Goes Up documentary of Dan Olsen and The Future is a Dead Mall: “I really like Dan Olsen's video/documentary, Line Goes Up; it has 2:18:00 and it's quite complete about what Crypto is, how it works and why it is a mess. When you put it with The Future is a Dead Mall, which is about” Metvers “, often related to Crypto/Web3, paints a pretty brilliant image of the world, and how it is in the world, Obviously tricked game, meant to turn every aspect of our lives into a financial asset that can be bet.

As the job is now, Crypto is either a) a bet for bets, playing as a financial asset, or b) a clean scam, and there is practically no difference between the two, apart from the creator's intention. Crypto pretends to be a financial asset of big boys, but in reality it is as sure as a NYSE themed trick device. The future of money? Absolutely no, and even Crypto evangelists are stumbling if you had to use it effectively to buy things ”.

In his opinion, the transaction times are as efficient as sending a receipt by post to the bank, and the fluctuating transaction fees and the basic value make his spending a bad idea. “In addition, it is designed to be a deflationary, which discourages the expenses and rewards the accumulation; there is a reason why the federal reserve has instructions to target an annual inflation of 2%. You could just as well try to buy a sandwich with a company. Its only use as currency is in the scenarios and it is super -important.”

He also says that “Crypto does not generate or represent any value, it is bought/selling based on nothing, only the consensus of hype and finds liquidity through the people who buy. If you want to change $ 100 in Bitcoin for USD, it is not like a currency with an exchange rate, but a product/share with a purchase price. Purely theoretical and probably would collapse if they were trying to sell it (which, of course, is how all solid coins works; if Amazon changes a billion USD for the euro, USD collapses and causes depression because everyone loses their confidence in the dollar?).

In the same note, someone else intervenes: “I think the blockchain is an interesting technology, which could have real applications. But I do not think one of them is as a means of storing value. Since it was seized by them, of technology suckers, who do not care about technology and want to make money quickly, has become a strange speculative market. Either using the hype, telling the world that they will use public money, even if it never gets so far, to inflate its personal wealth before selling. ”

Another user adds: “There is nothing new technological at blockchain. Merkle trees exist a lot. The only thing Bitcoin added is insufficient defense against Sybil attacks in a system without permissions, and ends with the fact that systems without permissions are simply a stupid idea. ”

“I think cryptocurrencies are a great deception. The constant collapses, the obvious scams and the cryptocurrencies make it seem that almost all are scams. The inventors of Bitcoin are likely to think that it is a currency, but it has simply become an irregular and fraudulent investment,” someone is complicating.

And another commentator claims that: “The cryptocurrency is not a currency. It is an asset with a fairly volatile value. Some cryptocurrencies increase in value, others are not. It is like a collection piece. Its real utility is not as a currency. You would keep it and not spend it. “

It also opinions that the usefulness of cryptocurrencies e “You have a free, illegal asset of regulations/interest on loans/issuance from a single source/supervision, which can be transferred between parties in a difficult way to supervise. The future is uncertain, we see how the end of quantitative relaxation in the late stage of capitalism is approaching, in places like Japan. ”