Apparently, people are still quite naive when it comes to crypto marketing. Most of the marketers and enthusiasts believe that they will become millionaires overnight by just typing a few ads on Facebook or Instagram for coin promotion. They’re also under the impression that they can make millions through YouTube ads every month.
Based on lies and false assumptions, these popular myths have led to several sad losses in cryptocurrency investments by eager wannabe investors who couldn’t even tell what a blockchain is but were convinced their idea was worth billions in market cap.
1. The Market Cap of a Cryptocurrency is the Same as the Price
Don’t ever confuse market cap and price. They are not the same thing at all. Market cap refers to the number of coins in circulation multiplied by their value. It doesn’t have anything to do with price, unless you’re talking about what someone is willing to pay for a coin during an exchange.
The market cap tells you how much money you need to win in transactions if you want to buy everything that is out there. On the other hand, price tells you how much an item costs if you want to buy it from someone who already has it.
This myth is probably based on people mistaking “market capitalization” for “market value”. But it is a mistake that can cost you a lot of money.
Suppose an investor buys $500 worth of Bitcoin at its current market cap, which is 21 million coins. He thinks he will be a millionaire within a year because the price of Bitcoin has grown to $5500, which is 20 times the original price. Well, if the market cap did not increase at all in that time frame ($500 into $5500) then his investment gained him nothing because he would still have only enough money to buy 0.7 Bitcoins in real life.
To put it simply, “market cap” doesn’t mean anything unless you know how much it is worth in real life. It’s so easy to fall for this trap. A lot of people will assume that the market cap means how valuable something is in the current market, but it isn’t.
2. The more ads you put up, the more money you get
The number of ads does not determine your returns. If this were true, then everyone should be becoming a millionaire overnight. All it takes to make an ad is 5 minutes and perhaps $5 using Facebook ads, right? Our site list is here.
If you have a product or service, then don’t spend your time running around writing random things on social media to see if it will work. Have some patience and focus on creating quality content that builds a strong following and provides value to people. You can always advertise to them later once they build trust in your brand.
If you are going to run advertisements, then make sure they are effective. Otherwise, you’ll be wasting your money.
3. Every cryptocurrency should have a white paper
The white paper is a huge waste of time for most new coins because the document itself isn’t important at all. It’s somewhat like an overview of what the coin does, but it doesn’t determine whether the coin will be successful or not in the long term. Instead of relying on a white paper, do an online search for information about the company and its founders instead.
4. Bitcoin is the biggest thing since the Internet, so buy BTC
Bitcoin was a great invention but it’s not going to change how things work in our world. It’s also not going to be a big deal in ten years. That is, if it survives that long because there are so many better and newer cryptocurrencies out there that have come out of it.
It’s not fair to say that Bitcoin or other coins won’t be successful, but the chances of them being huge are quite low. Many people are holding onto their coins with hopes of earning millions just like everyone who bought into the Dot-Com bubble or other ineffective investments for seo service.
5. All You Need is an Idea and a White Paper
Nothing is farther from the truth. Most startups never succeed, and the reason for that is poor planning and execution.
Just because you’re able to create a 50-page document called a “white paper” doesn’t mean you will be able to create something successful in the future. There’s a lot more that goes into creating something useful, valuable, or profitable compared to just making up some magic words on paper.
6. A Coin Is Never Successful Until It Has 10 Million Market Cap
The assumption behind this statement is that once the market cap reaches 10 million, then its value will double within three months just like what happened with Bitcoin in 2013. It could happen, but it’s not very likely.
7. HODL!!!
People are still buying coins like they’re lottery tickets for Bitcoin. They think they can wait it out until they get rich, but this is a recipe for disaster because clinging too long to an asset that has no real value is a bad idea. The market can be up or down at any moment and you will never know what’s going to happen next.
8. Every Coin That Goes Up Will Go Down
No investment goes up forever and every coin that goes down will recover at some point in time–except for those that have been abandoned by their developers, of course!
