Ethereum co-founder warned new crypto investors

The Ethereum co-founder worries that too many new crypto investors are taking the wrong lesson from crypto enthusiasts who flaunt their wealth and claim to have mined gold.

“The danger is that you have this $3 million ape and you turn into another kind of gambling,” Vitalik Buterin told TIME, citing the growing value and scandalous excesses of Bored Ape's NFT Yacht Club community.

That's why investment experts say it's important for crypto investors to clarify their goals and expectations before making a purchase, and to adhere to the 5% rule — meaning you don't invest more than 5% of your cryptocurrency venture capital portfolio investment.

As one of the most influential people in crypto, Buterin watched the development of his network with mixed feelings. As Ethereum aims to restructure the network and enable all uses from fairer voting to credit and credit systems, the Russian-born Canadian admits his vision for Ethereum has become vulnerable to human greed.

"Crypto itself has a lot of anti-utopian potential if used incorrectly," Buterin said.

It has become a vehicle for tax evasion, fraud and large-scale fraud. This has led to shameless demonstrations of mass wealth, especially for white men, who dominate the sector, which in turn has created public opinion that owning cryptocurrency will make you rich . And inequality has crept into the ecosystem, including a lack of gender and racial differences.

First, he told TIME that he wanted Ethereum to challenge the idea of ​​centralized management and disrupt Silicon Valley's power over everyone's digital life.

"If we don't exercise our voice, only things that are immediately profitable will build," he said. "And they are often far from what is actually best for the world."

Here are some things to consider when looking to invest or buy cryptocurrencies.

What to consider before buying cryptocurrency

Ask yourself why

Think about your risk tolerance

Learn how to invest in cryptocurrency

Decide which cryptocurrency you want to buy

Advisor:

Some financial advisors advise clients interested in cryptocurrencies to buy Bitcoin or Ethereum, but skip the more volatile and lesser-known altcoins.

But if you've done a lot of research and are passionate about a particular innovation powered by a lesser-known altcoin, then investing in it can be a personal belief and profit.

In both cases, according to experts, you should only invest what you are willing to lose