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

[libert19]

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.

[Helena Yu]

This is not only happen in crypto, but other industry too.

Many athletes and celebrities makes a lot money, but not all of them can maintain their wealth because they don't understand about money management and investment, they use almost of their money for their lifestyle.

While in cryptos, most people lost their money because lack of knowledge e.g. invest in ponzi, trust in centralized exchange, and invest in altcoins.

[dothebeats]

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.

[Hewlet]

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.

if you've heard of this phrase, "let him that stand take hid lest he falls" it would make much sense to you why this happens most of the time and it's not just peculiar to crypto.

When you've attained certain height in a thing or have witness certain breakthrough doing a particular thing, their seems to be this tendency of being too relaxed and in some cases, you might even ignore the fundamental strategies that led you to the top and before you know, the only way from the top which is the ground becomes your end point.

Even on this forum, their are people that where zealous while heading to the top of the rank in the forum and as soon as they rank up and join a particular signature campaign, the quality of their post might drop and some will even go too low to the extent of be raking forum rules and the unfortunate ones might get their account blocked.  No matter ones level of achievement or financial attainment, it's very necessary to know that what lies ahead is far bigger than whatever we've been able to achieve and so we continue pressing on .

[Churchillvv]

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 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.

[HeRetiK]

Keeping wealth is probably almost as hard as gaining wealth.

Especially if you got wealthy by catching a lucky break, diversification -- i.e. risk management -- becomes very important if you actually want to stay wealthy. And crypto is notorious for both lucky breaks and questionable risk management so it's no wonder if people tend to lose most of their gains again. It's definitely not just a crypto-thing tho, as Helena Yu already pointed out.

[CODE200]

Good thing that before I got into crypto, I already have some financial knowledge that I've learned in my business classes back in college and highschool, they were all profound so it's a good thing that I have those because when I first got my money in crypto, I didn't overspend on it and I didn't even waste every money that I've earned in crypto, everything went to the necessities and most of them was returned as an investment in other stuff, big deal that I was advised by my friend who introduced me to crypto that I should never hold on too much, if the opportunity to make a profit is there, always take that opportunity no matter what and for that I'm thankful to that friend.

[criptoevangelista]

Once you get to know this world it is practically impossible to leave, I consider getting to know the cryptographic universe as a mental expansion, nothing will be the same as before.

The vast majority come for money and after losing money there is only one destination: lose more money or start studying to understand the whole dynamic.

[hugeblack]

Everyone who comes to invest in Bitcoin as a tool for quick profit ends up losing his money, and then he either has learned and considers Bitcoin a long-term investment and starts with DCA and over time learns more trading strategies or leaves the market and describes Bitcoin as a scam. In either case, think about Bitcoin. As a way for getting rich quick is wrong.

[Gio vanna]

The funny thing that with the knowledge you ain't still safe from losses you still gonna experience that shit because losses are inevitable (just like batman though he has good knowledge but ain't still safe in Gotham).
But the knowledge can help in managing those losses and risks. That why you got to be smart too know the best time to invest or as
@hugeblack said learned and considers Bitcoin a long-term investment and starts with DCA. With that your losses and risk will reduce.

[BABY SHOES]

When we have passed where the phase of making money is easy in the sense of making a lot of money but from them there is no ability to manage finances then maintaining wealth is difficult especially when the style is higher than usual, this is what becomes trapped where they lose due to uncontrolled spending of their money.

It is quite important indeed how the lesson occurs, because if we have lost our wealth it is impossible to come back again, one thing we need to do is money management must be good and use it as wisely as possible not greedy for lifestyle sometimes people forget this.

While people lose in crypto, there are many, starting from buying shitcoins that have no price, trading high leverage futures, investing in the wrong coins but they ignore bitcoin for the long term.

[0t3p0t]

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 actually happened to me once way back 2017. I mismanaged my Bitcoin or cryptocurrency earnings and that ends up so badly. And I already learned from that mistake. I am now starting to try my luck again with crypto so hopefully I can do it one more time one day.

[avikz]

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 happens in any financial sector and not just in crypto. In crypto market this is more visible because of the price volatility. That's the only difference.

I think this is a trait of humans and not everyone can keep the money that are coming their way. Also some people are inexperienced on how to handle a large amount of money. So multiple factors are in play there.

Personally I have missed the chance of mining in 2009. I have an expensive gaming rig with me which could have easily mined a large number of Bitcoins back in 2009. But did I regret? No! Staying positive is what we all need to learn.

[Nwada001]

Yes, this kind of thing happens, and it mostly occurs when someone gains access to a large amount of money that they did not plan for, and such money sets confusion in the minds of many. Only a few take the time to picture the future before they make decisions on how to spend that money, so many use it as if it will continue to come that way.
 
This is why in everything that I do with or without having the money at hand, it's always important for men to set out a life plan that they can be working towards, and if you are then opportune to make that your dream money, things will be a little easier to follow up on than to start from scratch.
 
Money lost is never gotten back; the ones you make after the one you have wasted are not a replacement but rather an amount that could have contributed to one's financial growth, but many people always feel like there is enough time for them to retrace their steps and recover from all the misused opportunities.

[Gozie51]

I have also read alot of this kind of story from real world and also see people's businesses crashing. Sometimes they say someone is living on past glory because of the influence he had during when he was wealthy.

So at every point, financial management is important to how we can sustain what is in our possession whether gambling, trading or proceed from investment and real world business.

Talking about gambling, when you can't control your emotions you are likely to jump in on a higher stake when you lose or win a bet because of the adrenaline rush at that time and this is why it is only few that are able to sustain it and that few are the most experienced of gamblers who have been able to work on their emotions and mastered their winning strategy and also following it .

[kentrolla]

This is not exclusive to crypto as this happens everywhere when the people who gained the wealth but lacks the way to preserve it or have no knowledge of financial planning. We have often seen those who becomes millionaire through the reality show if you check on them couple of years later they would have lost everything and this was once said by Bill Gates where he defined wealth is not defined as well filled bank account rather ability to create wealth from wealth.

[ZAINmalik75]

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 think I was from the first group because at the start I also made loss and after making loss due to my lesser knowledge I left it and gave myself some time to learn more about cryptocurrency and now I am still learning, losing, and also making a profit. One thing so far I have learned the hard way is, never trust anyone, even if you are following a world-class trader or analyst never trust them just follow your instincts at the end.

Following your own guts is way better than following those whom you don't know much about. But if in case you know more about the person you are following then most of the time your guts will force you to follow that person.

I hope I would be one of those who have earnt a lot in there early phase and then lost because I might not have lost that amount if I would be given chance, as my first try will be to book some profit and then play risk with the remaining one.

[Upgrade00]

I went through a similar phase when I first got into Bitcoin.
During the first few months or years, my focus was on altcoins, particularly how to get the right project early and hold on to it as the hype grows. This was moderately profitable for the short term, but offered no viable investment option long-term.

I eventually after lots of lessons learnt focused more on investing in Bitcoin and moving away from highly volatile altcoins, which meant slow and steady growth with no "sudden" riches.

Some learn through the experience of others, some experience it and learn from that.

[uneng]

It happens because this is a volatile environment, which connects the whole world together. At same time there are many earnings opportunities involved, there are also many risks like scammers, security flaws, manipulation, speculation, besides a wide variety of coins and tokens to invest, what can make very difficult the decision of choosing for which of them to go. Also, the greed factor plays a big role, since investors seem to never be satisfied with the profit they have already made, so they keep risking for more. Inevitably at some point they end losing everything, especially when investing in uncertain altcoins which promise high unrealistic returns.

Even the experienced investors struggle in this market, because there isn't a certain recipe to follow in order to achieve considerable profits. We are constantly risking ourselves in a daily basis here. It's a wild land, like a gold rush, where there can be treasures in the end, but there can be also death and pain. We never know what is our fate until we reach the end of the line.

To raise our success chances, we have to stick to Bitcoin investment, holding our coins in safe hardware wallets and hoping prices to skyrocket on long term. Again, it's not the assurance of success, but it's a strategy to maximize our chances, even though outstanding profitability is unlikely to happen again futurely through Bitcoin. That is, it doesn't look feasible for BTC to return us something like x100 or x1000 anymore. On the other hand, altcoins are, if you pick the right ones at the beginning, before they get hyped. What should be understood is that slight chances of high profits come followed by huge risks...

[SmartGold01]

Like as I always said cryptocurrency investment is an investment for the smart people, you people feels too reluctant about their investment especially in altcoin investment because they felt is there investment or possibly they thought they knew all things about the project they invested on and hence they can hold till whenever they feels like taking profits before they could do. But in other ways, those who knows how the system is being maneuver never wait for their profits to give them 100 percent of what they invested or alternatively I could sense some forms of greed during holding some of coin because they had positioned their mindset of how bitcoin grows from zero to hero hence thinking all other coin would obey same principle giving an unending profits while they keeps holding for long term as they thought. My suggestion, any coin that is not bitcoin do not hold for long because the more you hold the more you lose.