In the first chapter of a new segment: “Demolishing Myths”, produced by Binance in Spanish and recently uploaded on YouTube, we are told about the level of expertise required to invest in cryptocurrencies. The presenter explores the question: Do I need to be an expert?
The answer given is not entirely wrong. But the tone and framing are quite biased. You draw the whole thing like a walk in the park. The dangerous ones are not mentioned. There is no talk of high volatility. Regulatory or legal issues are omitted. No certificates, records or audits. No “go to the authorities of your country for guidance”. And, above all, they avoid delving deeper into the risks. It is recognized in the video that some prior knowledge is required to invest. But it appears as a tiny problem. “There is a lot of free knowledge available on the Internet.” “A lot of my friends have crypto and none of them are financial experts,” says one interviewee. Do I need to be an expert? No, that’s a myth according to the presenter. But, beyond that, it does not go into further details.
This is not an article about the Binance video. My interpretation of the video is entirely subjective. Personally, I consider it very incomplete and a little irresponsible. In fact, it is extremely convenient for an exchange looking for more users. I want to take this opportunity to talk about financial education and responsibility.
Cryptocurrencies are very high risk assets. In this space, there is a lot of propaganda and a lot of narrative. Bitcoin is idealized and romanticized. But warnings are left in small print at the bottom of the page. That’s not good for the industry. And it’s a sign of immaturity. Why? Sooner or later, the investor feels cheated. I know people who lost a lot of money in 2018 who still explode with anger when talking about crypto today. I also know people who bought Bitcoin for $68K expecting to double their investment in a matter of months. New users usually buy with false expectations, because their “advisors” paint villas and castles at all times. Then, when things get complicated, those same “advisors” wash their hands. “It’s a long-term investment.” “Volatility is normal.” “You have to be patient”. Ah, but that is not what is said at first. At first, an illusion of certainty is sold. “To the moon”. $100K just around the corner!
Around the “experts” of this ecosystem. Having a large presence on social networks does not make you an expert. Knowing by repetition the speech of a digital tribe and reading the news with the same biases that you don’t make you an expert either. What it can bring you is a sense of identity and a confident ignorance. But not necessarily useful expert knowledge to advise others. On Twitter and Youtube, there are many accounts with many followers giving the worst advice. However, these “influencers” constantly spread falsehoods from a platform of influence thanks to their popularity. New people who come to this space learn to speak that new language. They learn the language and the new religion. And they feel like “experts” in a very short time. But “experts” in what?
Banks are bad. The government is bad. The dollar is bad. The Federal Reserve is bad. Bitcoin is good, scarce and the future. “Your keys, your coins.” “Bitcoin fix this”. “1BTC:1BTC”. Clever. You are already an expert. But that is a virtual world. Anyone can be a hero of history on Twitter. You put lights in your eyes and you are already enlightened. The world is divided into them and us. They are the bad guys. We are the good ones. They are always guilty. We are always innocent. The final victory is ours. And they, sooner or later, will find defeat. That narrative works, because it’s simple. The individual is trapped, because now he is strong for being part of the invincible group.
Now, let’s get back to reality. My grandmother is 92 years old, has some savings and many monthly expenses. She needs a fixed income in her retirement. What is the ideal portfolio for my grandmother? Who can advise her?
A young couple, with two children, in a Latin American country, have about $200 in savings. They live paycheck to paycheck. And they don’t have health insurance. What is the ideal investment for them?
An entrepreneur in the branch of commerce made a very good income this year with the sale of a product. Should you invest in crypto or replenish inventory?
How can we protect ourselves from volatility? What is a good price to buy? When is a good time to sell? How do we manage risk? How do I declare my earnings to the tax authorities in my country? What are the certified counselors in my area? Are they legal exchanges in my country?
It is one thing to speak on the networks and another very different thing is to be in the street verifying questions to particular situations. Giving opinions in the field of cryptocurrencies is a great responsibility. Do you need to be an expert to drive a vehicle? Do you need to be an expert to ride a motorcycle? Do you need to be an expert to ride a bike? Do you need to be an expert to buy a property? Does it take to be an expert to manage our finances? Do you need to be an expert to swim in the sea? No, you don’t need to be an expert. But things cannot be left just like that. A simple “no” is not enough in any of these cases. We also cannot recommend free information on the Internet without some caveat or caveat. It is extremely irresponsible to present the matter as the easiest thing in the world without talking about the risks and other aspects such as the laws in the country of residence.
Is it required to be an “expert” to invest in the stock market? No, but it’s not a tangerine. There are many aspects that we must take into account. There are regulations, risks and many complications. Investing in crypto is much more complicated than investing in the stock market. Is it required to be an “expert” to invest in crypto? No, but neither is it something to be taken lightly.. The risks are many. And, by being naive and trusting, we can lose a lot of money. caution is forearmed. Watch out for siren songs. Easy, safe and profitable? Too good to be true.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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