The article below was written by Nicholas Vega, a money reporter from CNBC, and was published on CNBC Make It website on March 4, 2021.
It is good to see that people are getting into cryptocurrencies, but when people get into anything for the wrong reason, there may be consequences or as some would say “Hell to Pay.” However, it does not have to be that way if the novices that are jumping into cryptocurrencies because they see the market going up just educated themselves about what exactly they are getting into.
It is also good to see an increase of the widespread adaption of cryptocurrencies especially after so many years of F.U.D. (Fear, Uncertainty, and Doubt) put into people’s minds about cryptocurrencies by some of the same people and institutions that were bad-mouthing the industry and are now some of the biggest investors in the market.
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”
– Arthur Schopenhauer, Philosopher
I have watched cryptocurrencies go through Schopenhauer’s three stages, and you can say we are in the third stage where it is becoming accepted as self-evident, but I would say there is much more to come before it really reaches that mass adaption phase.
I highly recommend anyone getting into cryptocurrencies for the first time engage in some type of cryptocurrency education so that they can better understand and make better decisions about the potential upside in what is available in this market.
Like the thing we call money but is just FIAT CURRENCIES, cryptocurrencies can be purchased and held on to, but, like money, there is so much to gain when cryptocurrencies are working to gain you more cryptocurrencies and you can only get that with cryptocurrency trading. However, make sure you are trading your cryptocurrency with a company that does not ask you to give them your cryptocurrency.
You should NEVER give up control of your cryptocurrencies to any company.
There are too many “Promise to Pay” companies whose main goal is to get you to give them your cryptocurrency only to disappear with your cryptocurrencies.
I have only found one company out there that does not ask for control of your cryptocurrency for you to participate in cryptocurrency trading, but please conduct your own due diligence so that you may make educated decisions about cryptocurrencies.
When you have read the article below, leave me a comment and share it with others. You can access the article below by going to https://www.cnbc.com/2021/03/04/survey-finds-one-third-of-crypto-buyers-dont-know-what-theyre-doing.html
More than 1 in 3 cryptocurrency investors know little to nothing about it, survey finds
Published Thu, Mar 4 20219:30 AM ESTUpdated Thu, Mar 4 20213:35 PM EST
Bitcoin virtual cryptocurrency price is displayed on a phone screen in this photo.
STR | NurPhoto | Getty Images
With bitcoin continuing to make headlines as it breaks through price barriers, more new investors are drawn to cryptocurrency every day. But crypto newbies aren’t doing much research before jumping in feet-first, a recent report from Cardify finds.
Using survey data collected from 750 investors between Feb. 5 and Feb. 12 — a stretch during which the price of one bitcoin climbed from $37,000 to $47,000 — Cardify finds that only 16.9% of investors who have bought crypto “fully understand” the value and potential of cryptocurrency, while 33.5% of buyers have either zero knowledge about the space or would call their level of understanding “emerging.”
A lack of knowledge or understanding hasn’t stopped people from buying virtual currencies, though. More than 40% of all crypto purchases come from new investors, the survey finds. That’s fueled in part by growing mainstream acceptance of crypto. In the past few months, both PayPal and Square added it to their platforms.
The survey results also suggest that many new investors have been spurred into action by a fear of missing out on gains. More than a third of survey respondents researched digital currencies for less than a month before buying, and 1 in 4 cryptocurrency holders told Cardify they were entering the space in the hopes of earning short-term financial gains.
Investment volumes in January 2021 were 23 times higher than they were in 2019, according to Cardify, with the average purchase size growing to $1,212, compared to just $432 at the same point in 2020. Withdrawals — or selling crypto assets — made up 26.8% of transactions, a drop from the 43.1% they represented in 2019 when one bitcoin was worth just over $3,000.
But it wasn’t just bitcoin’s meteoric rise that drew new investors to crypto — high-profile endorsements also played a role. Of the 750 investors surveyed, just under 180 say that they have a more favorable view of Dogecoin and are more likely to put their money into it thanks to Tesla CEO Elon Musk’s many tweets about it to his 48 million followers.
Indeed, Musk’s enthusiasm for the meme-based currency helped make it the third-most-popular crypto among survey respondents, with 8% saying they hold it. Bitcoin and ethereum, with their combined market caps well over $1 trillion, are still the most popular by far.
Investors aren’t completely confident in crypto, however. More than half of the investors surveyed agree that their biggest concern is losing their money due to financial volatility.