3 Reasons You Should Not Take The Advice of a Celebrity to Invest in Crypto
This could be one of the worst moves you ever make.
Afew months ago, Kim Kardashian made news about promoting a cryptocurrency on her Instagram page with 255 million followers. Kim was a sponsor to promote a cryptocurrency.
What was interesting, the cryptocurrency wasn’t Bitcoin. It wasn’t Ethereum, and it wasn’t Cardano or Solano.
The cryptocurrency Kim promoted was a penny crypto. This was a cryptocurrency that was worth less than a penny.
Anything that looks that cheap looks like a bargain to anyone not familiar with the cryptocurrency industry. People imagine they could be rich if they get in early and invest in this penny crypto.
Their emotions run wild imagining how many penny cryptos they can buy.
The cryptocurrency Kim promoted was Ethereum Max. Upon first look, Ethereum Max looks like Ethereum but it is far from it.
Ethereum Max is ranked 3,431 on CoinMarket Cap. The current price of Ethereum Max is 0.00000002151. That is not even half a penny. It is about one-seventh of a penny.
If you do some simple math, you could buy 4 and a half billion Ethereum Max for $100. It’s 4,651,162,790.6977 Ethereum Max to be exact.
Your mind is thinking, you could spare $100 and hope to win big bucks like playing the lottery by investing in this crypto that Kim mentioned.
Honestly, this could be worse than playing the lottery. You were just sold a scam and didn’t even realize it. Ethereum Max has a supply of 2 quadrillion which is a two followed by 15 zeros (2,000,000,000,000,000).
When a celebrity such as Kim promotes a cryptocurrency, this is what you should know.
Celebrities don’t care about you
Kim is an entertainer, a reality star, and the founder of a beauty brand. You may have seen her on the reality show Keeping Up With the Kardashians which ran for 15 years.
Lastly, Kim is a businesswoman.
Celebrities want to get paid
Just about everything Kim does publicly is about money or a way to promote her or her business endeavors.
Did I forget to add that Kim is a billionaire? Let’s not forget that. Adding some more numbers to her bank account only increases her net worth.
Promoting Ethereum Max possibly earned Kim between $300,000 and $500,000 if not more.
You need to do your own research
This was possibly the first time Kim promoted a cryptocurrency. She may know a little or a lot about cryptocurrencies. If someone offered her money to promote a story on her Instagram page, she would most likely agree to it without any concern about the item she promoted.
Instead of taking Kim’s advice, you need to do your own research.
There are too many scams in the world and especially in cryptocurrencies. Just because a cryptocurrency has the same words as the number two cryptocurrency, Ethereum. That does not mean they are the same. They could be vastly different.
This is why you need to do your own research.
Find out more about cryptocurrencies. Do your research. Look on Coinmarket Cap and Coin Gecko. Google the cryptocurrency.
Who else is talking about the cryptocurrency? What are they saying?
Instead of listening to a celebrity influencer, you need to do your homework. You need to also do some critical thinking. If there was a way to make money fast, then everyone would be doing this.
Following the advice of a celebrity or even a knowledgeable person can lead to financial ruin.
Look at people who invested with Bernie Madoff and other scammers. Some people lost millions of dollars.
With any investment, do a little more work and always do your research.
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Tom Handy is a top Investment and Bitcoin writer on Medium, and father of two kids. He retired from the Army and sits on several non-profit boards. Tom is the top Yelper in his community and a top Google Guide. You can find him on Twitter @tomhandy1 or email him at email@example.com.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
Writer and Investor