1. Observe Patterns and Trends Before Jumping In
2. You May Not Know How or Where to Research
3. Sophisticated Users: Are you a sophisticated user?
4. Brand Loyalty in Crypto
Crypto Beginners - You'll notice I'll have a stern tone throughout the article. It’s because I don’t think anyone’s just told you what you need to know, point blank. They may have, but in case not, this is what this article is for.
1. Observe Patterns & Trends Before Jumping In
We all know that history repeats itself.
That said, if you go into the cryptocurrency & blockchain space don't think you're the exception for anything negative that could happen. This false thinking could stem from naivety, willful arrogance or stubbornness; all which fall under borderline or outright stupidity. You’ll be better off if you’re the Naïve one because the last two are habits that won’t serve you well with currency of any kind. Especially the highly volatile and experimental ones.
There’s usually a disconnect between what people say and do. This really comes down to: keen self-awareness and critical thinking.
Don’t take information without vetting it! This isn’t to say people will always misleading – but apply the next concept and you should be fine.
In R&D, researchers use study groups, and the majority of participants have never taken the time to analyze themselves.
In study groups researchers don’t solely go off what people say. You may get people in the interview portion and ask them a few questions before they start a task. Such as allowing them to verbally project how they think they'll perform. When it gets into the implementation/execution part for the participant – guess what? They might have done something different!
Also, despite having taken action – and talking about what they did afterwards – they may not recall the recorded event accurately, because they may not have been paying close attention.
This is human nature, and not uncommon for all of us at one time or another.
Then there’s outright lying and deceit regarding full disclosure of the truth.
Keep this information in mind when you are learning about cryptocurrency. Give the benefit of the doubt and do your own research. If you are unsure of a situation and your money is being proposed to be put on the line - anyone genuine will give you time to research. Tell people you'll take a month or two to get back to them. If that's not good enough, don't do business; and trust your gut above anything else, while keeping level headed emotions ! But nothing will be able to help you if you think you can make fast money.
Common Themes : Losing Money
Example: Quadriga Loses $140 Million
Example: Cryptocurrency Scams
Example: Investors Learn Hard Lessons After Bitcoin Boom Busts
2. You May Not Know How or Where to Research
Most of the users in this space come from highly segmented markets. Such as FinTech (financial technologies) or computer programming fields for 5+ years.
If you do not consider yourself as familiar with one of those categories you may not be able to understand cryptocurrency and blockchain easily. Even the people in this space (more than you'd think) don't always know as much as they claim, or you may assume. At events, there's a high chance of you going over to a sponsored booth and finding a misinformed community manager when it comes to technical questions. This isn't about someone's level of intelligence. It's about how much research that person has put in, in a complicated and niche field at that.
I recall a conversation with a founder in this space who comes from the financial sector as a professional of 5+ years. He arrived at a hackathon to learn more about the technology side for this business. I told him that I personally believe that until one becomes a developer they can truly understand blockchain. Because not until you can build the network - you can't fully grasp it. It's like being a plumber who went to school and only knows what he's read and seen other people study, without putting his hands on a pipe. The difference is a red-belt verses black-belt level knowledge. Even at that - there's degrees of black belts.
If it's not in one's personality (left brain vs right brain) to really start programming, then of course they shouldn't. Vice versa for the programmer about the deep financial aspects of cryptocurrency and blockchain.
This is highly technical stuff and many people in the space, including myself are constantly learning and few know it all. Though, I'd argue it's more about - what side interests you more?
The financial, or the computer programming? Decide on that and it may help your search.
This will take time.
Common Themes :
Example: 9 Main Barriers to Cryptocurrency Adoption
Example: What is Bitcoin - A Guide For The Confused
Example: Cryptocurrency Trading Simulator
3. Sophisticated Users
In this category it’s hard to peg these people as Naive when they are part of a scandal. When taking advice from someone you know has this background – it may be good to give yourself an intuition check .
Definition from Legal Match:
A sophisticated user has experience, training, professional skills, or legal duties such that he or she is expected to know about a product's potential adverse or hazardous effects.
The best example of a sophisticated user is your personal physician. If you went in for a yearly physical exam and they told you you had cancer, you be scared right? But above all, you'd take them at their word even if you got a second opinion.
Common Themes : Pleading Innocence
Example: Mt. Gox CEO Mark Karpeles Claims Innocence
Example: Thai Siblings Accused of $24 Million Crypto Scam
Example: Bitcoin Trader on U.S Sanctions Blacklist
4. Brand Loyalty in Crypto
Brand loyalty is highly correlative to the market capitalizations, how bullish or bearish the market is, also the latest scandal. Don't forget this. Now let's get into more of this brand loyalty discussion.
Remember Howard Stern before AGT? That’s what Bitcoin is. If we want to conjure up a stereotype most mainstream folks with have – It’s the seedy old man, who isn’t afraid to shock jock, and hang around similar folk. Except, now our boy Howard gets to hug the children and judge them.
I’m using this analogy for cryptocurrency as a whole. The technology has no say in how it’s used. Just like Google was first known as the best search engine for pornography when it came out. Technology is appealing to certain folks in a high risk illegal industry.
In the cryptocurrency space we have people trying to under-go a re-branding similar to Howard Stern's. If they are genuine about cleaning their name- they’ll do it. But – the true test is back to #1 Observe Patterns & Trends Before Jumping In. Enough public relations and backing those actions up – they can make it happen. If the person hasn’t changed – don’t worry they haven’t had enough scandals to make themselves change. When you reach a certain level of comfort – there’s not much than can force you to change. If what got them there worked – why would they change?
Common Themes : Changed Men?
Example: Ethereum Co-Founder Apologizes for Blog Post About Sex With Preteen Girl Dying of AIDS
Example: Former Child Actor Brock Pierce Vows To Give Away $1B
Example: World Crypto-Con Sexual Harassment
Remember, it’s all up to you to prove you’re not dumb. Also, you could heed all the advice in the world and still end up screwed over from an unforseen event. It happens, but just know for yourself the reason you've entered.