Like Mushrooms After the Rain .:. Be Careful With "Comeback Cryptocurrencies"

in LeoFinance2 months ago

It looks that Bitcoin is on its' way to reach ATH this year! Actually, how it is rallying, maybe it will do it in this month... But, we will see how it goes... My personal opinion is that it is just a matter of time, and I have the patience to wait... But, how about you? And not just you, but others that are coming (back) into the cryptocurrency world?


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Two types of crypto people

In general, there are two types of people... The first type is people who were here in the last bull run, and who were here during "the hard times", or better called, "accumulation time"... If you were here BEFORE the last bull run 3-4 years ago than you KNOW the full crypto cycle.

So, what we were doing all this time? Well, personally, when altcoins started to go downfall I have stopped cashing out... As I was mining #Ethereum, I was paying my bills, food, and other stuff with PART of my earnings, leaving the other part for accumulation... But, as I said, when the decline started, I stopped to cash out... That was the beginning of my accumulation period, in which I am still at the moment...

But, I didn't do the same with all the cryptocurrencies that I bought in that crazy time... I have sold some, and some of them I didn't and still have them in my wallets... We will come back later to them...

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The second type of people is seasonal crypto enthusiasts... They would like to be part of this everything, but only in that part when markets are in GREEN and their investment is going up... They have come to space last time when Bitcoin was hitting its ATH, and they are coming back right at these moments... and will come even more in the next period...

The "problem" with these people is that they bring a lot of FOMO into space... I mean, FOMO is always present, and it can be good in some way, but it is usually the "hard learning school"... I was like that in the last bull run when I was rushing into some crypto projects that were just a pump and dump coins...

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Where are we now?

I would say that we are in the pre-altcoin bull-run phase... And there are a couple of signs that are showing us that... The one is these BTC swings up and down... I don't know if you are noticed, but a couple of months ago, when Bitcoin will go up, altcoins couldn't follow and they were going down... When Bitcoin was going down, altcoins were going down... You get the point, every BTC swing was painful for altcoin as they would react with losing value...

If you check how markets (and altcoins) are doing at the moment, you will notice a difference... When BTC is going up, the MOST of altcoins can't follow and go a bit down, but almost immediately when BTC stops for a bit, alts consolidate themselves and push a bit up... That's something that I find as a good indicator for a healthier altcoin time...

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Now, let's go back to the main topic and these other consequences of Bitcoin rally to the ATH... As I said before, I still have some cryptocurrencies that I have bought a couple of years ago, and I'm following their Discord channels... Well, there was almost nothing to follow for the last year or two, but lately, almost EVERY single coin developer has started RIGHT now to update the wallet, or do some "website redesign" thing, or just announce that development is still ON... lol...

It's the smell of the money and the possibility to catch the next wave and milk something from their "successful project" and idea that only their coin can accomplish... Don't get me wrong, there can be some of them that will comeback, but the possibilities are very low that that will happen... To be honest, I have seen some of the coins that have already done the same thing 3 years ago, and this is their "second comeback"!

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Over 7700 cryptocurrencies

There are over 7700 cryptocurrencies listed on CMC and most of them are useless or abandoned, but, be aware, a lot of them with "resurrect" with this BTC rally... Be very careful with your investments and please DYOR (do your own research) BEFORE investing in some of the coins...

It's not enough to check how old the coin is... You should check how much development was happening on them during the last year or two, do they have the trading volume at all? On which exchanges? Who are their main competitors and do they have a chance at all to beat them?

Personally, I will try to avoid these coins as I got burned on some of them before and I don't want to experience the same thing again... Will I invest in some new promising project? Probably... But I will invest a lot more time investigating them before making any money investments...

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All shit project will now keep coming to cash in cryptocurrency buzz and fraud the people who might be just starting.
Apart from scam projects we have other common types of fraud that also rises like.

Send one ,Get two.
cloud mining
send some money to claim your BTC.
Mine BTC with secret algo .
etc. etc.

Oh, yes... I forgot about some of these that you have listed... As I didn't use them back in 2017...

But you are right... cloud mining, sending money to get some, etc... Also, there will be probably websites where you can "stake" your coins... With this De-Fi hype, I'm 100% sure that we will see some of the big websites exit scamming...

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I believe that your analysis is spot on when we look at what happened during the last ATH. I see a certain difference that this time around the altcoin season could be limited to a certain number of assets. I mean by now people figured out that there are a lot of scam coins out there and also as you said the portfolio of tokens and coins has drastically increased over time (7700 coins !!!!). I think that the supply of available btc is slowly but surely getting to its limits and people will mainly start to invest in ETH and Defi. The question is which other coins and tokens will be pumping in the next altcoin season?

I mean by now people figured out that there are a lot of scam coins out there and also as you said the portfolio of tokens and coins has drastically increased over time (7700 coins !!!!)

Not sure about this... As people who are coming back into space have no idea what was going on in the past two-three years... :) And also, as I said in another comment, we will see some new scam ideas around De-Fi hype, for sure...

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So much valuable information in this post, which is a must read for a lot of investors/traders that are new to the crypto world. Even though I have been in it for awhile, I am seeing new patterns that the "old time" cryptos are doing, popping back up & acting like they were at the scene the whole time....

It blows my mind how many crypto spam tweets that are circling around as well as supposed crypto "gurus" are doing videos & posts, spewing their "knowledge" (& I use that world lightly lol). However, I am definitely NOT surprised....when the money comes to light, everyone & everything comes out of the woodwork....

I cannot stress how important it is to use critical thinking. Even when I share information I might know about trading, markets or crypto in general, I will always tell people to do their research & see what's the best move for them. I have been fortunate enough not to go through the cons you & others have been through in crypto but I have had losses in regular stock trading. While it wasn't as vast as other trader's losses, it still hurt & then the feeling of anxiety kicks in....not fun!

So, it pays to watch some of these things BEFORE investing. I don't like getting into anything I don't understand. But now having a little BTC, LTC & ETH under my belt, I am excited to see where this all leads...

Let's see BTC go to 20K!! ;) Thanks for this awesome read & I hope there will be more winners in this game than losers... Stay amazing! :) 🧡

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It blows my mind how many crypto spam tweets that are circling around as well as supposed crypto "gurus" are doing videos & posts, spewing their "knowledge" (& I use that world lightly lol). However, I am definitely NOT surprised....when the money comes to light, everyone & everything comes out of the woodwork....

And we are just at the beginning... lol... As BTC isn't officially hit the ATH... When that happens, then we will see all the scum, scam, and everything else all over Twitter and other social media...

We have to take double care to not get scammed, as they have become smarter with every next scam...

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This is very interesting detailed analysis. Thank you.
Yes, many altcoins will relaunch with BTC going up to cash in.
I also have some old alt-coins. but not very optimistic on getting something back.

Yes, two thumb rule to follow,
Always do your own research.
Invest only that you are ready to lose.

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Luckily, I don't have too much of these "oldies"... But, I have already noticed that 2-3 of them announced some new wallet versions, masternode patches, etc... :) They have the advantage of "being old blockchains" and people fall for that...

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Very informative for someone like me who was not around during the 2017 bull run. Hope I can avoid investing in mushroom coins :)

Well, they know to hide behind the sweet story and promises... The biggest alarm is if they didn't do anything in the last year or two... SKip those coins... :)

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I don't know many but I know one that I am staying away from 😇

Great article. Those are helpfull informations for someone like me.

Thank you for your kind words! I hope that it will help you to avoid suspicious coins and websites and earn you more money with smarter investing...

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