Crypto: a place where everyone makes money, but few secure it

[Xal0lex]

Inability to secure wealth happens in every department not only the crypto world.Investing an income starts from having this mindset of making more money with the money you have.It is said that we use money to make money.People who lavish their wealth without having the mentality of saving,investing don't think of the future.
   

You are forgetting that there are a huge number of people in the world who do not have spare money to make money and invest. The money they have is just enough for them to exist in this world. And on the other hand, there are people who have huge capital, such that they do not need to think how and where to invest to increase their capital. They do not need to think about the future, they are provided with money for the rest of their lives.

[Distinctin]

I was reading coinconfessions, and it occurred to to me that most of those who are in crypto go through a phase where they make lots of money, but eventually lose it all or most of it due to wrong decisions taken due to having lack of financial knowledge.

Some start fresh with lessons learned and make it back, for some having huge unexpected money come and gone creates a downward spiral that they feel hard to get out of, almost like they were better off not having this unexpected wealth come in first place.

I guess it's normal for beginners finding it hard to secure their earnings most especially that they are still feeling overwhelmed with the amount of profits they are getting.They will only know its value once they're completely lost, only to realized that they should have managed it wisely so that their earnings will grow instead.

However, it takes real knowledge and patience to secure your income by not wasting it on unnecessary wants. Otherwise, it would end up being lost because you are not wise on your decision making and only regret its consequences afterwards.

[demonica]

Well it's probably because making a lot of money doesn't really happen to them often or regularly. That's why when they got lucky earning huge money, the most common things they'll think of is "where do I spend my money?". It's somehow understandable since you're living your average life where you don't usually get to experience making a lot of money. And when opportunity comes, you would want to buy the things you want that you cannot usually afford. But sometimes people in this situation tends to be more impulsive with their spending because they believe that they still have a lot of money.
Even if you earn a lot here in crypto or in any other field, but all of your spendings are just expenses without return, that money wouldn't last. Without proper knowledge in managing your finance, you won't have any idea how to make your money circulate so it can grow bigger.

[yohananaomi]

Such situations are a regular occurrence in the cryptocurrency space. Human nature's inherent greed can lead to thoughts like "I've earned a lot now; I can earn even more." As you correctly pointed out, this mindset often leads to significant mistakes and, ultimately, the loss of everything. So, there's probably nothing to be done about it except gaining a lot of experience through making mistakes and learning from them. It seems one needs to go through challenging experiences to truly grasp the importance of sound financial decision-making.

Greed, in crypto or not, is a habit that cannot be separated from a person's nature because that is the main character of every person who wants to produce anything with a method that is fast and not full of challenges, usually resulting from convenience.because you are lulled by what you get easily and feel that you will be able to get it again, so you don't take action to anticipate that if you don't get it easily, there could be an alternative that doesn't make you worse off in a situation that ends up having its own difficulties.But all of that cannot be separated from knowledge that is not updated all the time, especially about crypto, where there are always updates that must include updates in whatever you want to do.

[so98nn]

That's a regular dilemma when we try to manage our finances. Take this, Bob has an enormous amount of money that was won in gambling or maybe from lotteries. However, money earned that way might lead to disastrous decisions. See, this money came easily with no hard work/skill, etc, merely luck, and when that happens, a person can go insane. They end up doing expenses they never meant to do in the first. They start feeling happy they have a big balance so they don't think much about re-investing it OR growing that money to more! It's like luxury taking over your head.

Coming back to the crypto-related investments, it is nothing different than that. In the end, it's money with value so decision-making never changes there. In crypto, you have very less opportunities or ways to invest. You can maybe stake or hold your crypto but nothing more than that. Moreover, while holding you go through hundreds of emotions that can lead to losses and unwanted selling. It takes a lot of effort in crypto as compared to the real world financing.

[MarjorieZimmermanGinger]

Greed, in crypto or not, is a habit that cannot be separated from a person's nature because that is the main character of every person who wants to produce anything with a method that is fast and not full of challenges, usually resulting from convenience.because you are lulled by what you get easily and feel that you will be able to get it again, so you don't take action to anticipate that if you don't get it easily, there could be an alternative that doesn't make you worse off in a situation that ends up having its own difficulties.But all of that cannot be separated from knowledge that is not updated all the time, especially about crypto, where there are always updates that must include updates in whatever you want to do.

Without controlling greed everyone will have difficulty achieving success. Greed is a human habit and needs to be filtered in certain ways to avoid undesirable things. The habit of thinking about getting rich quickly and the mindset of working faster to generate profits is madness that needs to be discarded because something you want to achieve must definitely take a lot of concrete action.

That's why greed can destroy someone and greed can also lead someone to experience losses, especially when they are in investments. Anticipatory steps are needed and as much as possible people must think rationally to produce something because it is actually not easy.

[libert19]

People who are not used in handling huge amounts of money will always be irresponsible with how they spend it because they will always have this mindset that they will still have lots of leftovers after buying something that is clearly worth a huge chunk of their money. Those who are used to holding huge amounts of money tend to use it to generate more money, whereas people who don't will just find a way to secure the next purchase and 'save' whatever's left of that money.

True, this is what happens to most people today as well as to me. I'm not used to holding a lot of money and when I want to use it, I think I'll have a lot left over so it's okay until I don't realize it's running out. Really need to learn how to control and manage money, that's my problem too.

This is what used to happen to me too, if there was already a good amount of money in my bank account, enough to sustain me for good time, I tended to get complacent with taking profits, i.e, wouldn't even bother to press sell button. Lately, I have gotten rid of this habit and now I secure profits, irrespective of whatever amount I already have.

This is why Warren Buffet has no respect for crypto investors, they don't earn their wealth by making smart decisions, they just happen to invest in the correct coin at the correct time and sell it.

Oh that tells it, now I respect his opinion, prior I used to not and disregarded him completely, considering him to be a folk who's ignorant about crypto sector.

[moneystery]

financial knowledge is one of the most basic things to be successful in investing and various other things in life. for example, there are people who earn a little but they manage the money well so it can increase a lot, but there are also people who earn a lot but because of their high lifestyle and tend to spend their money on things that are not important in the end they have almost nothing.

that is the importance of financial knowledge for a person, because by relying only on that, a person can change his life. especially when they get large profits in crypto investments, with the financial knowledge they have, they can use the investment profits for something more profitable or better understand their priorities, instead of using the money for consumptive things that are not actually important to them.

[yohananaomi]

Greed, in crypto or not, is a habit that cannot be separated from a person's nature because that is the main character of every person who wants to produce anything with a method that is fast and not full of challenges, usually resulting from convenience.because you are lulled by what you get easily and feel that you will be able to get it again, so you don't take action to anticipate that if you don't get it easily, there could be an alternative that doesn't make you worse off in a situation that ends up having its own difficulties.But all of that cannot be separated from knowledge that is not updated all the time, especially about crypto, where there are always updates that must include updates in whatever you want to do.

Without controlling greed everyone will have difficulty achieving success. Greed is a human habit and needs to be filtered in certain ways to avoid undesirable things. The habit of thinking about getting rich quickly and the mindset of working faster to generate profits is madness that needs to be discarded because something you want to achieve must definitely take a lot of concrete action.

That's why greed can destroy someone and greed can also lead someone to experience losses, especially when they are in investments. Anticipatory steps are needed and as much as possible people must think rationally to produce something because it is actually not easy.

That's right, friend, greed is inherent in everyone, and everything can always arise by itself. self-control over the ego, which always wants to achieve success quickly but is not accompanied by the ability to think healthily, then what happens is greed that emerges from everyone. Therefore, to be able to control greed, which will always cause harm to oneself and others, it must be controlled gradually by being willing to accept correction from others, which is something that needs to be done.So by being willing to accept correction, it is not impossible to change your thinking to become rational and change your greed so that it can be more useful.

[wxa7115]

I was reading coinconfessions, and it occurred to to me that most of those who are in crypto go through a phase where they make lots of money, but eventually lose it all or most of it due to wrong decisions taken due to having lack of financial knowledge.

Some start fresh with lessons learned and make it back, for some having huge unexpected money come and gone creates a downward spiral that they feel hard to get out of, almost like they were better off not having this unexpected wealth come in first place.

It should not surprise anyone that this is the case, regardless of how unlucky a person can be they will always have a few opportunities during their lives to turn it around, and a few people can take advantage of those opportunities and change their lives but the majority fails to do so.

And this happens because they either fail to realize the opportunity they have in front of them, or they somehow realize what is going on, but they cannot keep whatever they got from the opportunity as they spend it in stuff they do not need or they squander it by investing in other projects which turn into a scam and steal their money.

[Rabata]

Not only in the crypto space, but in any financial platform, I think there are many people who cannot fully manage money. Again in the crypto space I have seen many people who have made a lot of money without proper knowledge but they have not been able to keep that money for long. They have suffered due to lack of adequate knowledge. The point here is that I think many people are lucky enough to own a lot of money. They think they can own more money the same way they got it. As a result of such ignorance they lose their wealth. For some reason it is easy to get money in the crypto space, but keeping that money is not an easy.

[KiaKia]

The biggest problem is people failing to taking profits when their crypto is growing higher, the greed in human won't make them secure the profits, some will believe that it's the only beginning, that the price will move even higher, if you don't secure your profit you are not in any real profits yet.

I was also a victim of this mistake few times but I have learned, not fully understanding how crypto cycle works can punish anyone, but we can't all be wise anyways, some people must lose for others to win, it's just how things are.

Some failed to listen and learn from others mistake, as something like this have been discussed many times on the forum, even little mistakes that cost people to lose their crypto assets, I ended up getting a hardware wallet to increase the security of my asset, many still risk leaving thousands of dollars worth of crypto on hot wallets.

[KingsDen]

Money management has always been a problem, with people failing. As Helena Yu said, it doesn't just happen in the crypto world; it happens in almost every industry. People then try to impress the world with luxurious lifestyles that cost them almost everything, living the rest of their lives in regret.

I have listened to a financial advisor and there was a statement that he made that made me think twice and even till today I am still ruminating the statement. He said that it is more difficult to keep money but easier to make money. He went further to say that if you check many people around you they have handled thousands and millions at a particular time in their life but then they were unable to keep this money till another time of their life that they are unable to see such amount of money again. At a point I had to agree with the advisor. Money is hard to make but harder to sustain but in all it is very easy to spend.

I have heard of a lot of smart people who lack financial knowledge but remain successful because they are wise in other aspects. For instance, I have heard of individuals who made a huge profit from Bitcoin, and because they couldn't handle it, they just employed people to teach them or help them invest, and these experts helped them maintain this wealth, so they didn't fall back to square one. The fact is, even if one is not money-wise, they should be wise in other aspects.

I am not comfortable believing this story of yours you told. If someone had invested in Bitcoin and made huge amount of money he should be considered financially literate and not to meet any other person to teach him another type of investment in order not to return to poverty. I put it to you that anyone who is able to invest in Bitcoin and have good returns has already known the methods of investment and does not actually need to employ any other person to teach him where again to invest.

[AVE5]

Indeed anyone who is not for it to take financial drastic measures in setting up reputable bankrolls and take control of its financial expenditures are not fit in for the crytop journey because you would definitely be tastefully whispered to sell your coins with the lost of the goal of making profits.
Some Bitcoin investors who could not withstand to hold their coins for a longer time is not just because there was no alternative source of incomes but basically on a serious note that they lack the basic skills of financial managements to consider that the funds invested is literally to produce more money including setups considering a goal for the future.

[NNRR]

It's not just about cryptocurrency, no matter what kind of business you are going to do, if you don't manage it properly or understand it, you will face a lot of loss at some point, so before doing anything, have a good idea about it or have a good understanding about it and then make your investment.  If you do then you can come out with profit from that place

[redsun114]

Financial illiteracy is a common thing all around the globe. A lot of people cannot manage their finances properly because they don't have financial management skills and such people can't manage wealth if they manage to get it from somewhere by luck or inherited from their elders because I believe that a person with no financial literacy cannot make wealth himself. To run a business, or make successful investment decisions, you need to know how things with finances are done.

So, it's not just about people in the cryptocurrency market who earn and lose money because they can't manage their money or the inflow of money, such people can be found in any industry or any walk of life. Such are the people who are good at 9 to 5 jobs and spending a life that goes around in a circle repeating the same things every day, week, month, and year.

[btc78]

Unfortunately, this is true

We have to acknowledge that aside from gaining money, one thing that is hard is maintaining the money people who get wealthy probably feel as if money will never run out that is why they tend to make a lot of poor financial decisions these people often put their unnecessary wants as a priority instead of thinking of ways how to further gain money from the money they have just gained

[Renampun]

I was reading coinconfessions, and it occurred to to me that most of those who are in crypto go through a phase where they make lots of money, but eventually lose it all or most of it due to wrong decisions taken due to having lack of financial knowledge.

Some start fresh with lessons learned and make it back, for some having huge unexpected money come and gone creates a downward spiral that they feel hard to get out of, almost like they were better off not having this unexpected wealth come in first place.

This is what is called crypto market selection, those who survive are only those who are able to improve their performance well, while those who leave usually only think crypto is the fastest way to make money, they don't realize that this kind of thinking is the thinking of a gambling player.

The crypto community is now quite strong, so don't hesitate and be embarrassed to ask when there is something that is stuck in your mind, as long as it is useful for your investment decisions. advice for beginners, crypto is not the same as a gambling game, crypto is complex and requires carefulness to avoid losses, don't enter the crypto market if you don't have a strong intention to learn.

[darkangel11]

It all depends how you see this. I'm a kind of guy who was always back and forth with "making money" because I had bitcoin since 2014 and in 2017 I was up a lot, then 2018 happened and on paper I lost it all, but I kept holding, so in my mind I haven't lost anything. Some people call it unrealized loss or unrealized profit - I call it: I don't give a F.
IMO bitcoin is worth at the very least $50k at the moment and if they dump it down to 30, I'm not going to give it to them at that price.

[el kaka22]

Such a good thinking, I applaud OP for this writing up, because we all think about it but not everyone says it. It is true that it is quite easy to make money in the crypto world, I have seen plenty of people who made money in the crypto world before as well and this isn't really that shocking, it should feel like something that has to be a bit different.

I think the point here is that a lot of people could make a profit, but then we need to end up with a lot better results on the long run, like keep earning that money and most don't, most people just end up with a loss. I think we should consider the point of this thinking that we need to figure out a more long term income method that way we could do better eventually.