Top Most Annoying Cryptocurrency Questions

There are a number of questions and formulations that are popular among those new to the crypto industry. We explain what is wrong with them and why it is better not to ask them

Those who want to start interacting with the crypto sector often ask the same type of questions on the topic of buying an asset, earnings or analytics. By an interesting irony, it is these questions that are practically taboo in numerous communities professionally involved in cryptocurrencies, whether for the purpose of trading on the market and investing, or even more so for those who want to integrate the blockchain into existing solutions of various communities and industries.

Addressing uncomfortable questions like this, like bad advice, will help you better understand how to do it right, as well as improve your understanding of the basics of investing and trading digital assets.

Take $20,000 bitcoin?

Whether to take bitcoin at $20,000 or similar questions regarding other assets are most common. It is impossible for professionals working with blockchain assets to answer such a question in one word or even a few sentences. For a satirical comparison, one can cite a fictional situation in which a person would go up to a doctor on the street and ask if it is worth drinking cough mixture. Without having the right amount of information about the person’s situation and some analysis of all available data, the doctor will not be able to answer yes or no to such a question.

In exactly the same way, cryptanalysts and traders ask questions about whether, for example, it is worth taking $1,000 ether. To answer such a question, a specialist will need to find out a lot of information regarding the “patient’s” situation: does the person already own digital assets , if so, at what prices did he buy it, is he familiar with the basic principles of investing and managing funds, is he aware of the risks of any investment and, in particular, investing in blockchain assets, is he planning a short-term position or long-term investment, and many other questions.

In order to correctly assess the situation and allocate a proper share in the portfolio for a new asset, it is also desirable for a specialist to know the total size of the existing and potentially possible portfolio.

As can be seen from the nature of the questions, such a conversation will definitely not fit in a few sentences. Such communication also implies a certain level of trust between people, based either on some kind of mutually beneficial agreement, or on friendly or family relations.

Is it too late to take?

One of the varieties of the previous question, but with an added note of regret about “missed” opportunities. The quotation marks are used because any assets never move only up – there are always phases of correction and falls, which in the case of cryptocurrencies can be especially deep. Even if the prices of some of the most common coins and tokens do not present users with the desired entry point at a certain moment, there are always many other promising projects to be found.

Each year, many new projects enter the list of the top 100 digital assets by market capitalization, which become visible to the general public only after the explosive growth of the price and publications of mainstream publications, however, trading in these assets, of course, has been going on for a long time by this moment.

Thus, the answer to the question “is it too late to take?” essentially implies some kind of introductory presentation about the features of the crypto market and the movements of digital assets, after understanding which the question itself becomes irrelevant.

Which project will take off?

The next category of questions are requests for the evaluation of certain investment ideas. Unfortunately, very often many users are ready to throw their entire deposit into a freshly baked project advertised by someone, while not even having “blue chips” of the sector in their portfolio – BTC, ETH, BNB, ADA, SOL, DOT and others . Also, a huge number of pyramid schemes are still walking among the people .

Can an analyst unequivocally answer the question about the investment attractiveness of a particular project? Maybe, but a detailed answer will definitely take longer than a conversation at a coffee break and will be more like a due diligence audit service, which includes drawing up an objective view of the investment object, assessing investment risks, and a comprehensive study of the project’s activities and a comprehensive review of its position in the market.

All of the above applies to classical investment, however, in addition to these points, blockchain due diligence will also include the study of acceptable methods for storing an asset, as well as the study of issues of obtaining passive income using staking or other similar mechanisms if a long-term investment is planned.

How much have you already earned?

The icing on the cake of unloved questions over tea is the question of the analyst’s or trader’s own earnings.

First, income is an undesirable topic of conversation in most countries, and the culture of some regions that highly value individual freedoms even implies the rejection of seemingly more neutral questions about money – this is how Texas and Florida can easily be denied the answer to the question “How much did you buy a car or how much do you pay per year for the university?”.

Secondly, as with the previous questions, the answer may be more complicated and longer than the interlocutor expected. To answer the question, you will need a number of clarifying questions: what period are we talking about, whether to take into account unrealized PNL (unrealized profit or loss on currently open positions), whether to calculate profit against the dollar, or bitcoin?

It would be inappropriate for a trader to answer such a question, because his answer is unlikely to find a positive response from the interlocutor. Whatever amount is named, the subsequent reaction may be negative. From surprise and pity “why so little, I read that people raise millions on NFT”, to unvoiced envy “he earns so much for pressing a couple of buttons while I work at the factory.” As you might guess, none of the options has anything to do with the reality of ordinary market everyday life.

Let’s draw conclusions

Having considered the most frequent questions, we can conclude that in most cases, if the questioner has a serious intention regarding interactions with the crypto market, it would be desirable to devote sufficient time for self-education in this matter, or use a paid expert consultation. It is also worth noting that professionals working with digital assets like to receive new information from any source, so they will react to any question better if they add some interesting fact or observation on the market situation based on their own research to it.

Another reason why traders and analysts don’t like to give advice outside of their professional activities lies in the fact that any advice needs to be able to be implemented. In the wrong hands, even the most accurate buy signal can turn into a disaster due to the use of excessive leverage, the lack of a correctly calculated stop loss and take profit, or an overestimation of the volume of the trading position relative to the entire deposit of the user.

Last but not least, the unwillingness to answer numerous questions is played by the fact that disinterested help is often underestimated due to the peculiarity of the psychology of human relations.

Thus, a recommendation to buy an asset at a certain price can lead to a lot of negative emotions for the psyche of a newbie in the crypto sector, unprepared for the reality of the market, which will be blamed on the person who gave the advice. If the price goes up, but just a little, they will say that they have earned little. If the price goes up, but not immediately, they will say that it was possible to buy cheaper. The reaction of an unprepared user to a long-term price drop below the entry point before the start of a rebound will be even more predictable – by the time the growth begins, the nerves of a newcomer to the sector can already be irrevocably spent and the relationship between those who wanted to receive help and those who help can be permanently damaged.