{"id":6781,"date":"2022-01-26T12:26:05","date_gmt":"2022-01-26T12:26:05","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/26\/stop-listening-to-celebrity-advice-on-crypto-and-everything-else\/"},"modified":"2022-01-26T12:26:05","modified_gmt":"2022-01-26T12:26:05","slug":"stop-listening-to-celebrity-advice-on-crypto-and-everything-else","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/26\/stop-listening-to-celebrity-advice-on-crypto-and-everything-else\/","title":{"rendered":"Stop Listening to Celebrity Advice on Crypto (and Everything Else)"},"content":{"rendered":"

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Some people might be getting rich off of cryptocurrency, but the learning curve for newcomers is steep. You might be tempted to overlook the complexities and simply follow the advice of someone influential, like your favorite celebrity. But is that a smart move?<\/p>\n

Celebrities Are Not Financial Advisors<\/h2>\n

This may seem obvious, but celebrities don\u2019t get paid to give financial advice. Rather, they\u2019re paid to promote products, and sometimes those products are, more or less, financial investments.<\/p>\n

CNBC<\/a> reported in January 2022 that media personality Kim Kardashian and professional boxer Floyd Mayweather were facing lawsuits over a particular cryptocurrency called EthereumMax. Both celebrities were paid large sums to promote EthereumMax to their fans. Later, EthereumMax dropped in value by around 97%, leading to investors accusing those celebrities of participating in a \u201cpump-and-dump\u201d scheme<\/a>.<\/p>\n

Pump-and-dump scammers<\/a> recommend (or, more aptly, hype) an investment so that it grows in value before they themselves sell their investments for a high return. That \u201cdumping\u201d deflates the value for those fooled into the investment, causing them to lose money. It\u2019s an old trick that used to be done over the phone but is now even more prevalent thanks to the internet. And EthereumMax is far from the only crypto-based scam<\/a> out there.<\/p>\n

Do Real Research<\/h2>\n

It\u2019s worth noting that serious crypto enthusiasts never saw EthereumMax as a good investment or even a legitimate cryptocurrency. It was and still is known<\/a> as, to use an industry term, a \u201cshitcoin.\u201d But how can the average person watching Mayweather\u2019s fight or Kardashian\u2019s Instagram stories know that?\u00a0It\u2019s that lack of knowledge on the subject\u00a0that pump-and-dump scammers are counting on.<\/p>\n

The most generous thing you could say about Kardashian and Mayweather is that they were ignorant of the alleged scheme. Influencers often claim to only promote products they truly believe in, but\u00a0cryptocurrency is a complex technology, to say the least. With celebrities\u2019 busy lives, how realistic is it to expect them to have thoroughly researched the topic and developed informed perspectives on it?<\/p>\n

That\u2019s why you should do independent research, and don\u2019t listen to anyone paid to recommend something to you.\u00a0While influencers might claim to only promote products they believe in, it\u2019s a stretch to assume that they\u2019ve thoroughly researched and gained real insight on any cryptocurrency before agreeing to promote it.<\/p>\n

Similarly, you also shouldn\u2019t listen to someone who stands to make money from your investment. That includes people already invested in a cryptocurrency; you buying in will likely increase their return. Don\u2019t believe the hype.<\/p>\n

Instead, listen to legitimate financial experts, and make sure you really understand how cryptocurrency works<\/a>\u00a0and the fraud\u00a0surrounding it. There are risks involved in any investment, cryptocurrency included, and you should make yourself aware of what those risks are before making any decisions.<\/p>\n<\/div>\n