As cryptocurrency conversations continue to gain momentum and popularity, they create huge opportunity for financial gain. New millionaires pop up daily because of savvy cryptocurrency investments. The entire industry is relatively untapped despite the fact that the idea of cryptocurrency has been around for decades. As early as the 1980s the idea of digital cash gained interest and saw many iterations before techno-geniuses around the world figured out a sustainable, manageable, decentralized solution. And since the fateful day in 2008 when Satoshi Nakamoto posted the first public bitcoin paper, deeming it a peer-to-peer electronic cash system, the cryptocurrency trajectory launched into the stratosphere.
As with every gold rush expedition, there are thousands of stories that start off with, “It was too good to be true.” And cryptocurrency is no exception. With huge opportunities for wealth come the inevitable huge risks of frauds and scams. Predators prey on the desire to attain financial freedom, using time scarcity tactics as the price of bitcoin and others continue to rise, capitalizing on the lack of vetted information and relying on confusion and rushed decision-making. It’s very easy to draw connections between bitcoin’s success and the insane number of business opportunities and altcoins promoted by scamsters. And the beautiful thing about electronic exchange is all someone has to do is shut down a website and walk away with everyone’s hard-earned money, no trace, no accountability, no recourse. Then they simply start up a new venture and do it all over again. It’s stories such as these that cause people to veer away from cryptocurrency altogether.
But there’s no need to be afraid. Cryptocurrency is varied and complex and hugely lucrative with the right information, education, and training. For beginning crypto investors, a great place to start is in reviewing the 3 biggest cryptocurrency myths.
Myth #1 – Cryptocurrency is only used by terrorists and drug dealers
The tragedy of 9/11 set off a tsunami of speculation about cryptocurrency and its predecessors. All forms of electronic banking came under scrutiny. And rightly so. The relatively unknown and unregulated industry provided perfect channels of money movement without detection. It was nearly untraceable and posed a huge risk to intelligence agencies.
But that’s not all it was.
As the fittest survived and rose to the top, the standardization occurred naturally and inherent checks and balances managed the coins that made it past infancy. This opened opportunity for bold investors to explore cryptocurrency as a legitimate option. As with most things, the courageous and divergent jump first, the keen observers jump second, and everyone else jumps later, once the big opportunities are gone.
The keen observers are starting to jump.
Myth #2 – All crypto coins are created equal
The three major cryptocurrencies at this point are bitcoin, ethereum, and litecoin. Of course there are many opinions about this and diversity of thought is part of the brilliance behind cryptocurrency in general. But from a due diligence perspective, time-tested and well-founded coins make sense to serve as the bedrocks.
If you’re on social media you probably see an overwhelming number of advertisements for ICOs (Interactive Coin Offerings), business opportunities or sites advertising some new altcoin. Throw into the mix things like “blockchain forks” and you have the perfect recipe for what the crypto world calls “ShitCoins.” These opportunities quickly turn financial freedom hopes and dreams to nightmarish scenarios for those who leaped before looking.
Here are some basic questions to ask when considering a crypto coin investment:
How is it mined?
How is it distributed?
Is the coin on an exchange? If not, why?
Who created it?
Who are the principals behind the business structure?
How sustainable is the operation?
How is the coin used?
How many coins are going to be issued?
Myth #3 – What’s good for the coin is good for the MLM
Investing in particular crypto coins is different than engaging in cryptocurrency business opportunities. As more and more coins pop up in the market, the confusion seems to multiply. Add on top of that the fact that there are as many different coins as there are business models to promote them.
So breaking this down even further:
All cryptocurrency opportunities promote a coin. Those coins may be common like bitcoin, litecoin, and ethereum, or they may be more obscure. There are others gaining momentum and many, many, many trying to get traction. Some coins are traded internationally as viable currency exchange, others are only valuable for use on specific websites or for specific offerings.
In addition to variability between coins, coins can be purchased, traded, multiplied, etc. And, some business opportunities offer a networking marketing, multi-level marketing (MLM), or commission-based structure. The important thing to remember is even if the opportunity is based on a common coin, if the offering is dependent on a multi-tiered model that includes recruiting, the potential risk of involvement increases.
Here are some questions to ask prior to getting involved in an opportunity:
Does the opportunity have a recruitment component?
If so, is the opportunity dependent on recruitment? In other words, can the investor benefit financially from using the model without recruiting?
Is the business model for recruitment sustainable and scalable?
Unfortunately, the cryptocurrency information available is compartmentalized, confusing, and highly opinionated. Most discussions center around speculation and high-risk investment strategies. For the educated and level-headed, current cryptocurrency information is lacking. But Vetting Solutions, LLC solves this problem. With a foundation in government counterintelligence and years protecting businesses, entrepreneurs and investors, we arm cryptocurrency investors with reliable, ongoing, trusted information. Our firm offers cryptocurrency due diligence, training, and education. If you’re looking for a trusted source in cryptocurrency and want to leverage the experience of our counterintelligence firm, then click the link below to schedule your free consult.
We work directly with individuals who are ready to dive into the cryptocurrency world but want solid, reliable, ongoing, trusted information as they navigate it. As you know cryptocurrency continues to gain momentum and popularity. This combination creates huge opportunity and huge risk of frauds and scams. And there is a time component at play as the price of bitcoin steadily increases. If you’re looking for a trusted source in cryptocurrency and want to leverage the experience of our counterintelligence firm, then click the link below to schedule your free consult.
If you’re a good fit for the program, you’ll be invited to participate. You get access to our team, custom ongoing training, education and risk mitigation services so you can navigate and leverage the power of cryptocurrency. Custom cryptocurrency consulting and advising services are also available.