10 Brutal Truths About Crypto

1. Price Manipulation By Crypto Whales.

Individuals or institutions that hold large amounts of cryptocurrencies have a strong impact on price movements. Sure, we all like it when there’s news that MicroStrategy or El Salvador added hundreds of BTC to their portfolios which makes the price go up.

Click me.

2. Too Many Speculators Vs. Too Few Believers And Actual Users.

I’ll be honest here. I have invested in some cryptocurrencies not because I believe in their use case or because I plan on using them. It’s simply because I expect to make money with them.

Backed by Memes and Elon Musk: Dogecoin Currently Sitting At #10 In Terms Of Total Marketcap
Backed by Memes and Elon Musk: Dogecoin Currently Sitting At #10 In Terms Of Total Marketcap

3. Prices Often Do Not Reflect The Real Value Of Crypto Projects.

Dogecoin is literally a meme coin. A joke. But at the time of writing this article, it is among the top 10 coins in terms of market cap.

4. If A Coin Is Listed On An Exchange It Doesn’t Mean That It Is Legit.

That’s because Crypto exchanges make money by charging you trading and withdrawal fees. As long as there are enough people to trade a coin and as long as they can make money, Crypto exchanges don’t care (much) about underlying fundamentals.

5. Some Crypto Projects Take Advantage Of New And Inexperienced People.

They promise incredible returns by making false or fraudulent claims to lure in people. The financial and personal consequences can be dramatic. In a previous article, I told the story of Steve and how he lost his life savings by investing in Bitconnect. Check it out to learn how you can protect yourself from falling victim to a Crypto scam:

6. Security Issues.

Because blockchain and smart contract technologies are still at an early stage of development, quite a few projects have security issues. There are numerous cases when this caused investors to lose their money. Just in the first half of 2021, about $3 billion got stolen due to hacks and fraud.

Negative Crypto Headlines In The Mainstream Media
Negative Crypto Headlines In The Mainstream Media

7. Fake News.

There is a lot of false information floating around in the mainstream media when it comes to Crypto. Here are a few headlines:

8. There Are Lots Of Scammers And Pretenders.

We all know them and we all hate them.

9. Crypto Exchanges Are Not Reliable.

Crypto exchanges are constantly targeted by hackers. In other cases, some exchanges suddenly ‘disappear’ with all the money held in their wallets. Here is a list of crypto exchange hacks that caused total losses of almost 300 million USD.

10. Most Cryptocurrencies And Crypto Projects Fail.

There are several thousand cryptocurrencies and tokens in existence. Most of these projects will fail at some point.

Final Words

I am aware that many of the things in this list cannot be solved easily. They are part of the system.

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Ren & Heinrich

Ren & Heinrich

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Garbage man turned millionaire who writes about crypto and economics. Teaching you how to research & invest 🔬🔑📈 Follow me on Twitter: @ren_heinrich