With surges of 50, 60 or sometimes even 100% in a 24 hour period – all common in Crypto -, it causes you to think… “all dreams can become true”.

As soon as one has the first contact with crypto, since the very beginning, one finds oneself reading about “bulls”, “bears” and sometimes even about “whales“. When you dive deeper, once in a while you may be unlucky enough to face the fact that there is a fourth kind of animal, “wolves”. Posing as whales or as legitimate business actors, wolves are out there preying on newbies trying to extract theirs hard-earned holdings. Wolves want all your money!

Regular crypto investors tend to have some sort of faith in the extreme volatility in trading markets and interpret it as a chance to profit hugely like in no other business. With surges of 50, 60 or sometimes even 100% in a 24 hour period, which is all too common in crypto markets, volatility does cause one to think… all dreams can become true. The car, the boat, the new house, expensive vacations or, maybe, at least paying back debts! Crypto is a land of big dreams! This has been known to cause people to go all in in many cases.

The apparently infinite possibilities of immense profit may feel like a slot machine – specially when a person spends some money and the machine happens to pay out -! A sense of euphoria overtakes the gambler and many times greed begins to consume one’s mind! Thinking one could possibly reach higher, one can keep putting in more money. As a newbie, little does one know that the Bears are waiting, that the Bulls soon go to sleep and that the Whales are just playing! But then, as all goes up, FOMO starts to kick in and, before one realizes, all one’s money has been gambled on a promise to MOON!

Then, alas, the wolves come out of the woods. While this is happening and they’re preparing their cannibalizing move, the inexpert continues to think, maybe a little more, just a smidgen! So, wolves raise their goal even higher. With every percentage increase, one invests more and more naively, making them see that extracting from us a little more is possible. The Wolves control the game now! As newbies, we are simply beginners! We may not quite understand that a private key is not the physical key for their house or car.  The wolves end up catching and biting pretty hard, eventually taking everything from the vulnerable. All our money is gone!

This is the other side of crypto. Blockchain itself is an amazing technology capable of helping us build a better world undoubtedly. However, wherever a lot of money is involved, also a lot of bad energy will be present! Millions of dollars flow throughout the crypto space, where there’s little protection from legal centralized authorities or banks. People are very vulnerable if they transact without learning about crypto wolves. This is the very unfortunate dark side of crypto, where wolves are looking for sheep that they can eat!

When the first Blockchain was built, Satoshi Nakamoto probably did not think that a scenario like the above would happen. It seems he wanted to create something positively revolutionary for the benefit of mankind, a payment technology that fits in to the new digital world. A futuristic financial system that cannot be manipulated by authorities. But with its growth and after becoming more and more popular, people with little knowledge just think they can make money, very quickly, although this is not the true idea behind Blockchain technologies. On the other side, the whales and the wolves appreciated new blood being introduced into such a new and complicated world, from which they can feed.

Similar to stocks, Crypto is a scale. When on the one side people lose money, on the other people gain money! As Warren Buffett wisely says The stock market is a device for transferring money from the IMPATIENT to the PATIENT. The impatient will always become food! Therefore, for each and every act of investment that one plans to execute, it is highly recommended to investigate, research and perform due diligence. Never rushing to invest money is the key to success, not even when FOMO is making us suffer! If one is desperate to buy, something might be wrong! The best weapon against predators is DYOR: Do Your Own Research!

Nobody in this world will just donate money. Let’s never believe in amazing opportunities that will make us rich easily in just a few months or weeks! If it is too good and too accessible, then, we should feel doubts! It is best to work hard to not be the sheep, but rather try to learn what a wolf knows. Blockchain is a great opportunity, but it is a long-term endeavor. Sure, there is are some chances to make a quick buck in 24 hours, like in lottery. However, if one wants to have solid and sustained growth in their investment, consider the long run as your friend, unless you are a professional trader.

Many people often say: in crypto, we are in the middle of a bubble, like the new economy was back in 1999 to early 2000s. Maybe they are right! But when one really looks back, what came out of that bubble? Google, Amazon, Apple, eBay and other powerful innovators! Sure there were also shady projects at that time! They had their wolves 20 years ago, like the ones we’ve seen in some ICOs! However, wolves and whales won’t be able to catch those investors who do their own research. Investors who master the art of DYOR could build up a nice fund for retirement or for future dreams if they discover the Googles, Amazons and Apples of crypto.

Remember, only invest as much as you can afford to lose!

Notice: The content of this article does not constitute – and must not be understood as – investment advice! Please read the full DISCLAIMER here!

Definitions & Crypto Glossary of the following terms
*Bull *FUD
*Bear *FOMO
*Whale *MOON
and many more can be found here in our Crypto Glossary for Beginners!