8 Dark Secrets Of Crypto

The world driven by money isn’t all peaches and cream. You can earn crypto in easy ways and people like to go on about how amazing cryptocurrencies are but there are some dark and unsettling secrets that every investor should know. 

1) Major Security Breaches

Crypto is often advertised as a safer alternative to “real money”, however billions of dollars have gone ‘missing’ in bitcoin alone. These heists happened through exchanges themselves and ⅓ of all crypto theft is suspected to be an inside job.

A whopping $1.8 million is estimated to be stolen every day since stealing crypto is much easier than breaching the whole bank security system

2) Dead Coins

As of 2021, there are over 1 600 dead coins. The term refers to cryptocurrencies that ceased to exist. Most of these coins were terrible cash grabs with inactive development. When a coin ‘dying’ is basically company bankruptcy. Everyone who owned one of these coins lost all their money invested.

3) Extremely High ICO Rate Of Failure

Of the 902 cryptocurrency ICOs formed in 2017, 142 failed before even raising any funds, and 276 failed after the initial fundraising. Despite raising over $100 million the combined failure rate is over 46% for 2017 ICOs alone.

4) Most New Coins Are Useless

New coins like to grab money and fool investors with huge market caps and promise scalability and value however the heavy cos of decentralization makes them pretty much useless in the crypto world.

This only turns more people away from crypto and puts a stain on the model, which slows down the development of cryptocurrencies themselves.

5) Newbies Always Lose Money

Whenever big hype surrounds crypto and therefore the price, newcomers get in at the height of the bull run. Just like the stock market, the price of crypto fluctuates up and down but newbies always manage to put their money around the peaks. As the price starts adjusting and losing some of its value they panic sell and lose the majority of their money. Aka buying high and selling low.

6) Whales Are In Control

The whole market is pretty much controlled by whales. This small group of big players (around 1000) owns the majority of Bitcoin totaling up to 40%. These people have a huge amount of influence on the price and general direction, which they can control.

7) Crypto Is Often Used For Crime

While the majority of crypto isn’t necessarily used maliciously it can help criminals to hide the origin of crime. Reportedly in 2019 alone crypto has helped criminals launder over $2.8 billion through exchanges. 

8) Scams And Misinformation

Since crypto has become mainstream, many individuals obviously try to profit off of it. People spread misinformation and sometimes for straight-up scams just to make extra money. Scammers exploit newcomers and the fact that they don't know much about crypto.

Cryptocurrency Scams Took in More Than $4 Billion in 2019

Conclusion

There is a lot of negatives surrounding cryptocurrencies, however most of these are due to their huge success that cannot be overlooked. Crypto seems to be the feature of currencies and you can make money before the big change happens. 

Check out some of the best long-term cryptocurrencies to invest and hold, while keeping safe with your newfound knowledge of this article.