These people who dream of becoming millionaires with cryptocurrencies
Among the myths surrounding cryptocurrencies, there is one about becoming a millionaire one day by trading. This topic was discussed this Friday during a roundtable at Surfin’ Bitcoin.
The tone is set. “Why Are Newcomers Thinking of Making an Instant Fortune in Cryptocurrency?” asks Grégory Raymond, co-founder of the media Big whale, at the beginning of the roundtable entitled “Trading Trap and Fantasy 1000%”. The conference, which brought together four experts in the field, took place this Friday morning at Surfin’ Bitcoin which gathers 1,800 participants from Thursday to Saturday in Biarritz.
If we look at the cryptocurrency market, its high volatility, rising (bull market) or falling (bear market, as we saw with two recent cryptocurrencies), can attract more than one. The facts are there: according to data from Coinmarketcap, some cryptocurrencies have experienced price explosions in the short or even long term.
For example, it is certain that those who bought bitcoin as soon as it was released – when it was worth only a few dollars – and who still hold it today, were able to make a lot of money, others even managed to become millionaires. At the time of writing, the price of Bitcoin is trading around $21,000 despite hitting an all-time high of $69,000 last November.
“Easy money does not exist”
“Yes, there is that famous ‘oh I know someone who won a lot’. However, in my opinion, there is no such thing as easy money. Besides, we are entering a complicated period, there is no forecast for the future. and that’s why there are people who try something else. We were locked in captivity and had time to discover the entire ecosystem,” said Owen Simonin, head of Just Mining, also known as “Hasheur”.
The French are increasingly interested in the cryptocurrency ecosystem. According to a recent study by the association for the development of digital assets (ADAN), 8% of French people invested in cryptocurrencies in 2021, and 30% plan to invest in this asset in 2022. Some traders hope to increase their chances of winning money with certain processes, especially with leverage.
“We’ve had waves of new products with significant returns for 20 years. But one thing is for sure, it’s riskier to trade cryptocurrencies than other products. The more risk you take, the more potential returns you have. High,” explains Nicolas Chéron, market strategist at ZoneBourse.
The speakers reminded that you should invest only a part of your capital (10 to 15%) in the cryptocurrency market and diversify your portfolio. We remind you, it is recommended to invest only what you are ready to lose. The leverage effect in cryptocurrencies should therefore be taken with caution.
“I messed with the lever”
“Avoid leverage, it’s really a trap, it takes a lot of experience, I’ve been scammed with leverage,” admits trader Dark emi, who, through hands-on research, has shown that many other people in the room have lost money with this process.
Because there is a big difference between traditional financial traders and the crypto ecosystem.
“People who trade cryptocurrencies are much less educated than in traditional financial trading, but education is an essential part of this ecosystem,” says Owen Simonin.
For those interested in trading, the facts are there: whether in the stock market or the cryptocurrency market, there are far more losers than winners even if social media can highlight the successes more. In chess.
“People who are new to cryptocurrency will make a little bit of money, and then after a bear or bull market, 99% will lose in the end and 1% will win,” says Rogzy, CEO of Discover Bitcoin.
This trend is not only exemplified in the cryptocurrency market, but also in the traditional stock market.
“I’m a stock market analyst, I talk to a lot of clients and I only need to know a dozen or even twenty traders who make a living by trading,” admits Nicolas Chéron.
So if there is still such a loss in trade, why is this area still so attractive? Many factors can be mentioned: the financial freedom that cryptocurrencies allow, the (psychological) sensations that traders can experience when buying or selling their assets. But one theme was unanimous: learning about the workings of the financial system and the crypto ecosystem.
“Even the best have lost money, even the banks have lost money. The more I dig into the trader business, the more I tell myself it’s a full-time job. You have to take the time to get it right, but it requires a huge learning curve,” he concludes. Owen Simonin.