Even though YouTube is a platform where you can develop lots of skills – and that includes the ones related to cryptocurrencies – you should take it easy when it comes to financial advice. This article will show you why it’s a bad idea to blindly follow “crypto experts” from YouTube, and what you can do instead to grow your portfolio like a professional, be it that you choose to trade crypto options on Bitlevex or prefer to stick to holding coins the old way on platforms like Binance, KuCoin or Coinbase.
Most of them don’t know what they are doing
As simple as that, and many times, they’re pretty clueless. And you don’t want to take and apply financial advice from someone that doesn’t know what he/she is doing. They’re simply in the cryptocurrency niche to make money just like everyone else; however, they have other ways of making money:
- Pumping shitcoins
- Promoting specific projects
- Selling subscriptions, guides or training programs
- Selling affiliate products and software in the crypto/financial space
Therefore, it makes a lot of people pretty biased, and you don’t want to take advice from someone who’s being paid to promote a specific coin… let alone a shitcoin that’s only going to get pumped and dumped shortly afterward, leaving you with a huge loss.
Most of the influencers on YouTube, Twitter and TikTok fall into this category. You can make money out of their recommendations – but you don’t want to base your entire strategy on what a specific set of YouTube influencers say – that’s the quickest way to fail and burn your portfolio. Don’t do it.
Blindly following YouTube experts is the lazy way of investing in traits of anavar cryptocurrencies
We all dream of getting rich quick, and hence, many people opt for the “easy” route, which is following whatever the trendy YouTube expert says. A lot of people got stuck in projects during the 2017-2018 blow-off top.
For example, we had a lot of YouTube experts recommending their fans to buy $ICX at $10+, based on their “predictions” that it’s the Korean Ethereum and that it will easily go beyond $100 in a pretty short time… some months later it lost 50% of its value, and it bottomed at $0.10 approximately during the COVID-10 black swan event of 2020. Had you follow their advice, you would have lost 99% of your money… and that’s not good, especially since $ICX has not been able to break through the $3.5-4.00 mark, even during the bull run of 2021.
This is just one of the many examples where following YouTube experts caused a lot of people to lose plenty of time. Many times all of their investment, and you don’t want to do it.
YouTube experts often tell you to buy at the peak and to FOMO
Just like our $ICX example, YouTube experts are excellent peak callers. Whenever you see a lot of YouTube experts recommending you to buy a specific coin because it’s the next BTC or ETH killer – or something amongst those lines – there’s a high chance that the peak is in for that specific cryptocurrency.
FOMO – Fear of Missing Out – is what you should avoid at any cost when investing in cryptocurrency. Chasing green candles just because a YouTube guru told you that you will x10 your money in a few days/weeks is a quick way to lose your money.
So, instead of using YouTube experts as a buy signal, you should use them as a sell signal. This way you can retain a lot of your profits, so you can invest in the next bottomed project or re-buy lower in case the fundamentals and catalysts of the cryptocurrency are solid enough to be worth the risk.
This happened with $QRDO, for example. $QRDO is a solid project indeed; nonetheless, a lot of YouTube experts started shilling and promoting it at $9, telling their fans that it was going to “moon” and easily reach $50-100+ in a few weeks. As of January 12, it’s trading at $6 – another good example why it’s bad to follow YouTube gurus.
$QRDO was a solid buy at $0.80-2.00 USD, and if you had sold when YouTube experts started shilling it, then you’d have secured an excellent ROI. Therefore, use them as what they are: precise peak callers. You will take your crypto strategy to the next level by using this new signal.
Now that you know why it’s a bad idea to trust YouTube experts, it’s time to apply this advice to your own trading and investing strategy. Let us know in the comments what you think, especially if you want more tips to improve your current strategy.