These people who dream of becoming a millionaire with cryptocurrencies

Among the myths surrounding cryptos is that of becoming a millionaire one day by trading. The topic came up this Friday during a roundtable discussion at Surfin’ Bitcoin.

The tone is set. “Why are newbies thinking about making a fortune in cryptocurrencies right away?” asks Grégory Raymond, co-founder of the media The Great Whale, at the beginning of the roundtable entitled “The trap of trading and the fantasy of 1000%”. The conference, which brought together four experts in the field, took place this Friday morning at the Surfin’ Bitcoin, which brings together 1800 participants in Biarritz from Thursday to Saturday.

Looking at the cryptocurrency market, the high volatility, up (bull market) or down (bear market, as we saw with the two recent crypto crashes), can attract more than one. The facts are there: According to data from Coinmarketcap, some cryptocurrencies have seen their prices explode in a short or even longer term.

For example, it is certain that those who bought bitcoin as soon as it was released – when it was only worth a few dollars – and who still have it today have been able to make a lot of money, others have even managed to become millionaires. At the time of writing, Bitcoin’s price is trading around $21,000, though it hit a record high of $69,000 last November.

“Easy Money Doesn’t Exist”

“Yes, there is the famous ‘ah I know someone who has won a lot’. But in my opinion there is no such thing as easy money. Moreover, we are entering a complicated period, there is no such thing, there is no prediction for the future and therefore there are people trying something different. We were locked up during the incarceration and we had time to explore the whole ecosystem,” said Owen Simonin, chief executive of Just Mining company, also known as “Hasheur”.

The ecosystem of cryptocurrencies interests more and more French people. According to a recent survey by the Association for the Development of Digital Assets (ADAN), 8% of French people will have invested in cryptocurrencies by 2021 and 30% plan to invest in these assets by 2022. Some traders hope to increase their chances of winning money with certain processes, especially with leverage.

“We have had waves of new products with significant returns for 20 years. But one thing is certain: it is riskier to trade cryptocurrencies than other products. The more risk you take, the more potential returns you have,” explains Nicolas Chéron , market strategist at ZoneBourse.

The speakers reminded that in the cryptocurrency market you should invest only a part of your capital (10 to 15%) and diversify your portfolio. As a reminder, it is advisable to only invest what you are willing to lose. Leverage in cryptocurrencies should therefore still be viewed with caution.

“I’m screwed with the leverage”

“Avoid leverage, it’s really a trap, it takes a lot of experience, I’ve been fooled with leverage,” admits trader Dark emi, who showed by doing a freehand survey that many other people in the room has lost money with this method.

Because there is a big difference between traditional finance traders and the crypto ecosystem.

“People involved in cryptocurrency trading are much less educated than in traditional financial trading, but education is an essential part of this ecosystem,” said Owen Simonin.

99% loss

For those interested in trading, the facts are there: whether in the stock market or in the cryptocurrency market, there are far more losers than winners, even if social networks can emphasize the successes more.

“People new to cryptocurrency are going to earn a little bit, and after bear or bull market waves, 99% loses at the end and 1% gains,” said Rogzy, CEO of Discover Bitcoin.

This trend is not only illustrated in the cryptocurrency market, it is also the case in the classic stock market.

“I’m a stock analyst, I talk to a lot of clients and I only need to know a dozen or even twenty traders who make their living trading,” admits Nicolas Chéron.

So if there is still so much loss in trading, why does this area remain so attractive? Many factors can be mentioned: the financial freedom that cryptocurrencies offer, the (psychological) sensations that traders can experience when buying or selling their assets. But one topic was unanimous: learning both the workings of the financial system and the crypto ecosystem.

“Even the best have lost money, even the banks have lost money. The more I delve into the trade of trade, the more I tell myself that it is a full-time job. You have to take the time to understand it properly, but it requires a huge learning curve,” concludes Owen Simonin.

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