Caution! This sub has some of the worst investing advice I've ever seen, and it's full of people who think they're Warren Buffet because they won a billion dollars in the lottery.

Let me begin by saying that if you invested $1,000 in bitcoin when it was first released, you are most likely very wealthy today. But don't let that detract from the fact that it elevates you to the status of someone who wired $1,000 to an anonymous person on the internet in exchange for some magical beans.You'd be stupid not to have money invested in cryptocurrency these days, but keep in mind that it's almost entirely based on speculation, and a lot of your success is based on pure luck. In a bull market, everyone is a brilliant investor. People who post here pretending to be seasoned investing gurus are more often than not people who got lucky a few times. Have fun with your Baron Rothschild memes, pretending that everyone who invests in cryptocurrency will become a millionaire.This is not the first time in history that a generation of young people has gotten rich by jumping on a wild speculation train. People had the same attitudes at the height of the dotcom bubble. "Twenty-five percent returns in a year?" Those are scrub figures. Anything less than 100% is not acceptable!" We all know how that ride ended, and this one will as well. This ride will come to an end, whether it ends in a major bust or becomes a mainstream financial tool dominated by Wall Street. Take advantage of the high returns while you can.Lastly, If you have the money to do so you can manage your risk by diversifying. Yes, the goal of diversification is to have a completely uncorrelated asset. Because all cryptocurrencies are highly correlated with one another, diversifying requires diversifying in a completely different asset class. Investing in another coin is not considered diversification; it is equivalent to investing in McDonald's and KFC and calling it diversification.As always, thank you for your time.

Submitted June 02, 2021 at 07:41PM