What are common risks involved in crypto?

[robelneo]

There are so many others everywhere, feel free to share some to get everyone especially the newbies aware of them and how not to fall for them. Thank you..

The most common factor is greed, when we are greedy we are blinded by the hype and false marketing of fake projects, we should educate ourselves on what to look for in a project with good potential in the market not just greed for profit, we need to check the usability of the token, the roadmap and check the credentials of the people behind the project, and second is lack of knowledge on what to look for a project, majority of the projects now are fake or cash cows of its developers, only if you are educated enough can you avoid these type of coins.

[Aanuoluwatofunmi]

I don't know why some people don't first try to analyze the risk involved in cryptocurrency before going into it, they most especially use to have a different perception far from what the digital network is all about, another thing is that they don't also make research on any crypto before investment, i don't know maybe its all about their laziness or the way they least place value on their crypto asset.

[Z-tight]

and second is lack of knowledge on what to look for a project, majority of the projects now are fake or cash cows of its developers, only if you are educated enough can you avoid these type of coins.

Truly there are a few things to check if you want to invest in a new project, but take note that checking all of that does not mean you are going to be lucky and get a good project, you may still be scammed or buy a project that ends up useless in no time. Avoiding scam coins is very difficult if you buy a lot of new projects, the chances that you won't buy many useless coins is slim to none.

[Dr.Bitcoin_Strange]

I don't know why some people don't first try to analyze the risk involved in cryptocurrency before going into it, they most especially use to have a different perception far from what the digital network is all about, another thing is that they don't also make research on any crypto before investment, i don't know maybe its all about their laziness or the way they least place value on their crypto asset.

Lack of adequate knowledge, greed, misinformation and laziness that you mentioned can actually cause Newbies to fall victims of the risk that are involved in cryptocurrency. I remember I fel victim a few times too when I early started my journey in crypto but I learned from my mistakes and become better in crypto dealings.

If anyone wants to go into cryptocurrency, let them first learn and understand all the necessary education which they need because that's what will prevent them from falling victim.

[Dr.Bitcoin_Strange]

It seems that you have only mentioned the risk of frauds and hacking, but there are other typical risks connected to cryptocurrencies as well.
One of the main risks connected to cryptocurrencies is volatility. Cryptocurrency investments are dangerous since their value can change quickly and without warning. For example, in 2017, the price of Bitcoin rose from around $1,000 to nearly $20,000, before crashing back down to around $3,000. This rapid and unpredictable rise and fall was due to a combination of factors, including speculation, hype, and news events. This volatility increases the chance of losing money even if it can also present opportunities for gain.

[taufik123]

Actually, these are the only coins that you can earn from faucets before Doge, LTC, and Bitcoin when I entered into crypto someone paid me in Dogecoin by doing captcha typing it is safe than investing I hold them and make a profit even without the help of influencer like Elon Musk Doge coin increase every altcoin season or every end of the Bitcoin BlockHalving months or a 1 year you should be able to see the price increase of this memecoin.
Yes, it is a shitcoin but dev cores have become serious about developing this coin until now.

Ahh ok-ok, you seem to really enjoy a job that initially only looks like a toy, just typing Captcha and getting paid with cheap Coins like DOGE back then.
You start your crypto journey with DOGE, which became a legendary coin and can even hold it for the long term.
Elon Musk is just like a new student who entered the Doge ecosystem and became a big fan.
Shitcoin like DOGE alone has a lot of community, and they also do DOGE mining, this is certainly very amazing.

Look at the market almost all exchanges doge coin is listed, do you think this coin is still a shitcoin? For me, no, there is no shitcoin that survives long the same as Dogecoin.

I first came to Crypto that I saw only 3 Coins, BTC, LTC and DOGE, Not almost but all exchanges automatically register DOGE as the main coin and as History of Crypto.

[Lucius]

~snip~
Shitcoin like DOGE alone has a lot of community, and they also do DOGE mining, this is certainly very amazing.

It was also my first coin, and regardless of what others think, I would not agree that we should put it in the "shitcoins" category, because it has survived to this day, unlike most of those that failed long ago. What has set that coin apart from others has always been a large community that has actually maintained it until today, and what prevents it from having a higher value is the fact that it has an unlimited supply.

What are common risks involved in crypto?

Regardless of what others have already mentioned, I think ignorance and rashness are the main reasons people lose their investment. If you know that everything that is too good to be true very likely implies that it is a scam and if you are not hasty in your decisions, in 99% of cases you will make the right decision.

Although I would take a step back and say that the internet as a tool is a huge risk, and that all those who do not know how to use it should avoid investing in cryptocurrencies.

[Aanuoluwatofunmi]

There's this two common risk and mistakes people often do in cryptocurrency and this is more common to newbies that are just being newly introduced to crypto.

the first one is investment non shitcoin scam, not everyone knows the way to go about in choosing the right coin for themselves, instead they go by the way some of these coins were being advertised.

the second one is the trading risk in cryptocurrency, some believed that since they have the opportunity of earning through crypto trading, they can just start without having the experience of doing it and eventually lose at the end

[Gladitorcomeback]

There's this two common risk and mistakes people often do in cryptocurrency and this is more common to newbies that are just being newly introduced to crypto.

the first one is investment non shitcoin scam, not everyone knows the way to go about in choosing the right coin for themselves, instead they go by the way some of these coins were being advertised.

the second one is the trading risk in cryptocurrency, some believed that since they have the opportunity of earning through crypto trading, they can just start without having the experience of doing it and eventually lose at the end

I think both points you've mentioned are interconnected with each other because a person who lacks knowledge and experience will not know which cryptocurrencies are good and which are bad and which they should choose for their investments.

So the most common mistake among newbie investors is that they don't gather or gain enough knowledge before they venture into trading which is why many of them lose money and then start abusing the market and leave trading and cryptocurrencies forever instead of correcting themselves and their mistakes.

[vegasus]

1. As the world globally grow everyday digitally, so is the brain of a good scammer, here some scammers send you some email and it appears exactly as tho it was sent by a legitimate crypto currency company,..

Scams, are always existed in the crypto business.
As you said, it can be in the form of scam projects, scam platform pretending like the official ones, phishing links, and other scam methods. And commonly, most of them are quite the same if we analyze the method.

Even it is a free program like airdrop and other project type promotions, if they are asking for some funds at first or they need to see your wallet seed phrase or other important data, we must be careful of this.

Cz it is suspicious enough to do it. And it is better to avoid this kind of involvement.

Related to the phishing links, never click immediately a link sent to  your email. Watch out of any possibilities.

2. What wallets do you use to store up your treasure?

If making it for long term, it is much better if storing our assets in the hard wallet. But sometimes, it is different if we are willing to use the coins for trading, we may diversify it into reputable exchange.

Other risks of being in crypto spaces:
- Loss the money because of future / even spot trading
- Being stressful and frustrated because dropped value of investment assets

[Dr.Bitcoin_Strange]

~snip~
Shitcoin like DOGE alone has a lot of community, and they also do DOGE mining, this is certainly very amazing.

It was also my first coin, and regardless of what others think, I would not agree that we should put it in the "shitcoins" category, because it has survived to this day, unlike most of those that failed long ago. What has set that coin apart from others has always been a large community that has actually maintained it until today, and what prevents it from having a higher value is the fact that it has an unlimited supply.

Yea, you are right, @Lucius. I was a very big fan of altcoins, but due to the experiences I had with failed projects and the fact that my investment was lost, I just lost interest in altcoin projects. Dogecoin was already in existence before I started my journey in space, and then the price of a doge coin was worthless, and there were so many airdrops I did then and earned billions of free doge coins. I will also not classify the doge coin as a shit coin because it has survived through the passage of time. Many shitcoins have failed, but the doge coin was still standing tall. 

[EthereumDev_]

Yea, you are right, @Lucius. I was a very big fan of altcoins, but due to the experiences I had with failed projects and the fact that my investment was lost, I just lost interest in altcoin projects. Dogecoin was already in existence before I started my journey in space, and then the price of a doge coin was worthless, and there were so many airdrops I did then and earned billions of free doge coins. I will also not classify the doge coin as a shit coin because it has survived through the passage of time. Many shitcoins have failed, but the doge coin was still standing tall.

That is one of the risks presented by altcoins, because altcoins sometimes provide a lot of profits, sometimes they also provide losses, it depends on you how you can respond to this wisely because it has been informed that altcoins always have very high risks, including meme coins like Doge, Shiba and others. So you have to be more careful when entering altcoins and make it an important experience so that you don't choose the wrong new project.

[Mr.right85]

2. What wallets do you use to store up your treasure?
So many fake wallets are in existence today, and these apps were created by scammers as a trap to withdraw every single coin you have stored into it. Watch the type of DExs of CExs wallets you use to store up your coins.

When a new technology is having an uprise, it’s not out of place that it would be persecuted and leveraged by anyone and everyone who sees an opportunity within that space, legally or illegally.
Scammers have been everywhere and some means by which they’ve been able to divert user funds is by creating these cloned wallets.
Scammers basically clone wallets, websites and create fake investment platforms to trick you into having the confusion that it’s the original and with the irreversible nature of cryptocurrency transactions, once it’s sent and have got a single confirmation on it, it’s no longer within your rights to own it.

Hence. It’s become of great importance to do roper research on what wallet or site you’re saving or investing your money as, these clones does exists and is a window for losses. Always looking up for official website and downloads from there links has been some ways to save yourself the trouble.

[EthereumDev_]

When a new technology is having an uprise, it’s not out of place that it would be persecuted and leveraged by anyone and everyone who sees an opportunity within that space, legally or illegally.
Scammers have been everywhere and some means by which they’ve been able to divert user funds is by creating these cloned wallets.
Scammers basically clone wallets, websites and create fake investment platforms to trick you into having the confusion that it’s the original and with the irreversible nature of cryptocurrency transactions, once it’s sent and have got a single confirmation on it, it’s no longer within your rights to own it.

Hence. It’s become of great importance to do roper research on what wallet or site you’re saving or investing your money as, these clones does exists and is a window for losses. Always looking up for official website and downloads from there links has been some ways to save yourself the trouble.

Unfortunately, nowadays it is increasingly difficult to track sites that try to phish or hack from sites connected to your personal wallet. When you want to make a transaction on a site, I prefer to use a second wallet so that the transaction is safer and does not pose a threat to The main wallet that has a lot of stored assets.

[KingsDen]

Ignorance is one big risk that everyone investing in cryptocurrency should avoid. People have made costly mistakes that cost them their hard earned investment out of ignorance. It is not usually easy recovering from a huge loss simply because you didn't know and was never informed about the consequences of the actions you took. It is better for every cryptocurrency investor to first make researches about what they are investing in, read lots of contents on cryptocurrency, best wallet to store your earnings and cyber security tips. Don't stop reading and asking questions because ignorance is very risky.