Observing and analyzing the supply and demand of cryptocurrencies allows investors to make accurate decisions and avoid risking their financial positions. Scammers take advantage of those users who cannot identify that fraudulent crypto assets do not have a concrete white paper or roadmap.
Spanish entrepreneur Gabriel Reyes uses the media to create awareness of the blockchain and help companies raise funds for their projects.
Although the first half of 2022 was difficult for cryptocurrencies, their adoption continues growing globally despite the crypto winter.
While the daily trading volume of cryptocurrencies has increased to USD 93 billion, their global market capitalization exceeds USD 1 trillion. People seek crypto assets to increase financial stability, especially in low- and middle-income regions like Africa, Latin America, and the Slavic countries.
However, an increase in knowledge and literacy does not match this unprecedented growth in adoption. A recent survey reveals that 96% of Americans and 99% of Brazilians and Mexicans failed the basic crypto literacy quiz.
The Importance of Smart Education and Investment
Bitcoin (BTC) was born 13 years ago, but other cryptocurrencies like Ether (ETH) and Solana (SOL) are under ten years old. Although the highest adoption of crypto assets began nearly five years ago, the market is still young and volatile. Since the prices may vary significantly, users need proper education to be unaware of indicators that allow predicting these fluctuations.
Investors can make accurate decisions by observing and analyzing the supply and demand of cryptocurrencies. Other indicators, like regulatory updates, mining status, and market inflation rates, can help them avoid risking their financial positions.
Investors Must Stay Away from Scams
Cryptocurrencies are decentralized assets, as no regulatory agency or institution supervises them to ensure user safety and compliance. The industry is full of scams and fraudulent projects like the squid game token (SQUID), whose creators got away with millions.
Besides not having a concrete white paper or roadmap, the CEOs of those fraudulent crypto assets are anonymous. Scammers use the little literacy of their victims to entice them to invest and steal their money.
Education Is Essential to Get Better Job Opportunities
Cryptocurrencies also relate to next-generation technologies like blockchain, non-fungible tokens (NFTs), the Metaverse, and the DeFi industry. Therefore, crypto literacy may provide users with various opportunities in the innovative spectrum of digital companies.
Education is essential to help people make better financial decisions and protect themselves from scams. In addition, they can increase their security in the cryptocurrency space and access to new business and job opportunities.
Investors Should Receive Organized Training on Cryptocurrencies
First, it is essential to focus on financial education, while setting realistic learning expectations for beginners. Besides the benefits of investing in cryptocurrencies, they must also be aware of their risks. They must learn the economic fundamentals of decentralized assets, how they work, and how the market changes.
Although only 1 out of 3 investors believes buying cryptocurrencies is easy, that perception must change. Organized lessons on how to buy crypto assets may encourage faster adoption of those assets.
Educational media and content in the blockchain and DeFi space overemphasize technical elements. However, it should be enjoyable and accessible to allow learning through significant gamification.
By Alexander Salazar
