BEWARE THE CRYPTO CURRENCY PUMP & DUMP - MUST READ!!!
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dump truck.png!
Hello fello Steemians! just wanted to write a short article offering a word of caution when in investing in this EXTREMELY hot (over heated) Crypto Currency Market.
there is an old Stock and Bond scheme Called the "PUMP and DUMP", essntially what it is: a business or offering of value is presented as the latest, greatest thing (such as all the new Crypto Currencies) and offered to the public as the next "get rich quick" investment, it is usually compared to existing ultra successful investments such as BITCOIN and is promoted as being in it's "Early Stages" and you "Better get in now!" well in some cases this may be true, however in a lot of cases the people promoting these new currencies have alternative plans.... "THE PUMP AND DUMP" ... that is, they will start up a new currency promote it HEAVILY (PUMP IT) , drive up the price and when they feel the time is right - DUMP IT for a MASSIVE profit which unfortunately craters the price and leaves all of the investers holding the bag (full of worthless crypto).
one of the things I do like about Steemit is the investment the company has made in it's facebook style platform, it's limited risk (financially) and the fact that you can earn FREE crypto (it's also a lot of fun and the people ive met on here are great!)
so, not trying to be a Henny Penny ! just be cautious - NEVER "chase" price, diversify your investments IE: Gold, Silver, Land and Crypto.
I guess what im saying is do your due diligence an RESEARCH what you're buying (Remember the "Beanie Baby" Hysteria several years back? and the RIDICULOUS prices some of them were demanding! they are all pretty much worthless now.)
there are definitely some good investments out there but NEVER put all your eggs in one basket!
if you like this article please vote and follow me, (I will do the same for you) together as a community maybe we can exchange ideas and information that can help us ALL make great financial decisions - take care and thank you.
Nice reminder for us fellow crypto traders! Upvoted!
Thanks buddy.
Welcome to Steemit :)
I follow u, follow me back if u want lot of fun and amazing picture every day.
Done and Done - Thanks friend.
It reminds me of the .com days. Lots of people lost their life savings. Some of the crypto currency may become stars but many of them may go to zero. Speculate only with the money you can afford to lose.
yes it's definitely getting a little over heated.
I agree with you. Two weeks ago I posted an article titled "Dot-com déjà vu". Describing that the current situation is similar to the dot-com, before the bubble burst.
I do think cryptos have a bright future, but at these levels you could lose a lot of money fast!
The caveat being that careful pump-and-dump is exactly what built the Steem platform so quickly.
The cardinal rule of diversification is right on- but I started here just 3 months ago, and did almost nothing for over half that time, and have almost nothing built up yet, but I have NOTHING to lose...
LOL kinda like the song: "if ya aint got nothin' you aint got nothib' to lose" - thanks for your comment.