This is a Transcript of a YouTube Video I made:
With every printed Dollar, Cryptocurrencies are further exploding into the Stratosphere — it’s the out-of-the-money space ship, where everybody on board gets super-rich because money on earth has become worthless.
While I also believe that this prophecy will come true, in this Video, I will focus on the other side of the Coin. Many if not most Crypto-YouTubers exploit their influence to gain more money at the expense of their followers.
First, they infect you with their hype and greed to make more money. They want you to make even BIGGER gainzz by trading your crypto instead of simply holding it.
All you need to do is click one of their affiliate links, register your account, deposit your crypto, follow the trade signals and make big Gainzz lololol.
You saw how crypto YouTubers did it. You saw all the spectacular gains they and their followers made, the fancy cars, the skyline, and all that. You just want to have a little piece of the cake.
Ok, so you’ve waited for an outbreak, got a double bounce, put in a trade Wooh Yeaah we’re going to be rich. And then boom, Rekt rekt rekt.
Don’t get me wrong, crypto is excellent for making money, but many have also lost everything.
Because unfortunately, “There are no get-rich-quick schemes like some of those Guys proclaim.
It’s just them getting rich off you, and I hope that this video will spare at least some of you from this fate.
Yes, Everyone is responsible for his own decisions, and they’ve warned you that you should only trade if you’re an experienced trader, you might say.
But who is to judge at which point someone can be considered experienced?
Everyone can call themselves an experienced trader.
And that’s why according to statistics from conventional trading sites, 60–90% of Traders lose money.
In some countries, these sites are required by law to display those stats visibly, so people at least know the odds of losing money.
And Because in crypto, there are so many young people entering the space, I assume that these numbers are even closer to 95%. Humans don’t fully develop the brain regions for risk assessment until their mid-twenties. Making it even likelier to lose money
The Truth About Trading
If you’re serious about trading, you can’t rely solely on technical analysis, indicators, or trade signals to tell you what to do. There are so many variables that the average trader doesn’t consider or even has access to.
Institutions, whales, and mining pools know this exactly and take this opportunity to dumb the market, scare newcomers and buy their coins for cheap, which can be seen in the massive volatility.
So why can’t these YouTubers be more honest about how complex, addictive, and emotionally distressing trading can be.
I guess that they don’t talk about it because they want their affiliate links and personal holdings to make more money.
Hyping People up f is easy. But speaking about the uncomfortable sides of trading and one’s failures is difficult.
Instead, these YouTubers tell themselves that they are making their followers rich.
They make a 20 Minute trading “tutorial” explaining how to open a trade and put your money at risk. However, trading is not primarily about making money, but 99% of your job is to make sure not to lose money. This message only doesn’t sound as exciting as telling you that you can become rich with a few clicks.
Of course, they have success trading because they have income streams from their affiliate links to recover from big losses, but most of us don’t.
“When things sound too good to be true, it’s probably wishful thinking” (Elon)
If they don’t talk about their experiences, I’ll have to tell you about mine.
I’ve started investing in bitcoin in 2019 and quadrupled that money since. But I also ended up almost losing a quarter of it again through trading. And Even though I’m in profit, the sting of having lost that money felt way worse than having the gain to compensate for it.
During that time, I was in a constant fight or flight state. The elevated heart rate made me sleep worse. And worse, sleep caused me to make even more bad decisions.
In the end, it wasn’t really about the money anymore. It was about distracting myself, reading Articles that affirm my bias, jerking off at my portfolio numbers.
I started to neglect other parts of my life that usually made me happy.
But quitting also wasn’t easy. My brain was telling me that I was making the right decision by trying to fix a problem.
But this wrong mindset, combined with my declining mental state, only made it worse.
I thought that I was trading, but what I was really doing was gambling.
I think that Many People might fall into the same trap as me. Especially now, when many people feel bored, depressed, and lonely at home. People are dying to have some form of escape from what’s happening right now.
I know that these experiences have to be lived through to be fully understood and that speaking sense to People rarely helps. It didn’t help me, after all.
But the one thing that saved me from further misery was learning that having enough is enough.
Because have you ever asked yourself why most lottery winners end up broke?
I guess it’s because, like me, they felt happy for a brief moment, but then they were just as or even more anxious than before.
And because we tell ourselves that this money was supposed to make us happier.
The logical solution seems to be chasing that high of making more money again. But because most of us never got taught about psychology or money basics, we do stupid shit with it and lose it all.
Let me clarify that I don’t say that trading or the YouTubers are evil.
They are just flawed human beings like you, the bankers on wall street and me. Who sometimes have a limited understanding of psychology and act on lower moral principles.
But I do think that there should be disclaimers and broader conversations about the risks involved. And instead of showing People where to trade, they should be given a chance to educate themselves about money and psychology.
I hope that other people are willing to open up about their experiences and losses as well so we can help each other course correct.