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A Beginner’s Guide to Getting Started with Bitcoin
- jqpabc123 6y agoA critical point missing from the article --- bitcoin and the "exchanges" which form the crypto marketplace are _not regulated_ by government. This makes the crypto markets very fertile grounds for both sophisticated wholesale manipulation and simple scams that would never be tolerated in "regulated" security markets. One of the simplest and most popular scams is the "pump and dump". For example: The pump --- A famous, wealthy entrepreneur announces with much fanfare that he has just purchased a large quantity of bitcoin. This enourages naive "investors" to purchase too driving the price up 20%. The dump --- Famous wealthy entrepreneur then sells his large quantity of bitcoin and realizes a 20% gain. If famous wealthy entrepreneur did this in a "regulated" market, he would find himself in legal trouble. If you don't understand how these scams work, _you_ are most likely one of the people being scammed.
- crecker 6y agoThanks for the feedback! All those points are valid, and I do agree 100%. Probably the question of how volatility markets work and how much risk there's would need a more extended article.
- jqpabc123 6y agoI guess the main point where we disagree is on the order of importance. Until you fully grasp the inherent risk in any _unregulated_ investment scheme, you really shouldn't get started with it.