Lesson#04
Avoid Fake Influencers :
One thing that is very common in the crypto community is the presence of so-called social media influencers whose only function is to promote coins for their own benefit. These coin developers typically offer these influencers a bunch of tokens, and they just keep promoting worthless trash coins. They make all sorts of promises about these coins, and when the coins go down 10x or 15x, they don't even take responsibility for their words. They will never admit that their followers lost a lot because of their bad advice. Unfortunately, they don't stop there. Next week or month, they will come up with a new coin and new promises. Newcomers often fall prey to them. They think that these influencers must be loyal to them and want their benefit, without realizing that the influencers have their own agendas. These influencers create fake hype about these projects and don't invest a single penny of their own money. We, the innocent people, just because of trust in these influencers, get trapped and invest hundreds of dollars into worthless coins that don't even deserve a couple of bucks.
Lesson learned: Do not blindly trust influencers for making investment decisions. Do your own due diligence. Read about the purpose of the project, its use case, and the developers behind it. Find out what they have achieved in the past. Get as much information about a project as you can. You know, when Bitcoin came into existence, it took more than two years before it attracted any significant investment. Now, a coin comes into existence, and just a couple of minutes later, people are putting their life savings into it. This is suicidal! What you should do is proper fundamental analysis. Once you are confident that a project is legitimate and has the potential to grow in the future, only then invest your hard-earned money.
