In a world dominated and shaped by social media, consumers increasingly turn to influencers for advice and recommendations on a wide variety of products, services, and subjects. In a way, influencers have become the new experts. People listen to what they have to say and rely on their knowledge and expertise to guide their decisions. And it’s no different when it comes to cryptocurrency. If someone wants to learn how to buy Bitcoin with debit card or track the best digital currencies to invest in, crypto influencers often serve as the primary source of information as they seem to hold the answer to everything.
Crypto-savvy individuals are a distinct category of influencers whose popularity has grown considerably in recent years with the expansion of the crypto industry. Their opinions and counsels help many traders and investors make sense of the ever more intricate crypto space and make better-informed decisions. But are these self-styled experts the right people to ask for direction and advice, especially on such a sensitive and controversial topic as crypto? In most cases, the answer is no.
However, if you’re going to look for crypto guidance elsewhere from now on, you should also understand where this wariness comes from, so here’s why following crypto influencers blindly might not be such a good idea.
Conflict of Interest
While sometimes crypto influencers give disinterested advice and their sole purpose is to provide their followers with reliable and accurate information on different industry-related topics, that’s not always the case. Influencers also need to earn money to continue their activity, which is perfectly understandable since they dedicate a lot of time and effort to creating the content that they put out there.
However, when this money comes from crypto firms and developers whose products and services they endorse, it turns into a conflict of interest. You can’t be sure if they promote these products/services because they genuinely believe they’re worth it or because they’ve been paid a generous commission to provide a positive review. Even if they are transparent about ads, partnerships, and sponsored content, as per social media regulations, you should still take everything they say with a grain of salt.[related_link]
They Don’t Practice What They Preach
Influencers may talk the talk, but do they walk the walk? When an influencer has nothing but words of praise about a certain product or service but you find out that they’re not using it, it sends up a major red flag about their truthfulness. If they are so enthusiastic about an asset and go above and beyond to highlight the benefits it provides, why are they not taking advantage of it themselves? It simply wouldn’t make sense to miss such an opportunity.
When there’s a logical fallacy in sight, chances are something’s not quite right. It’s usually just a classic case of hyping up a product for financial gain, so their support doesn’t reflect their true opinions. If you want to test an influencer’s honesty, you should find out if their words match their actions.
Scammers Disguised as Influencers
Many influencers are nothing but wolves in sheep’s clothing. Some of these so-called crypto specialists are scammers trying to trick people into disclosing personal information or even investing in fictitious projects under the guise of being helpful and providing guidance for inexperienced traders and investors. These scams tend to be elaborate, promising massive returns, expert strategies, or offering giveaways and other incentives to lure people in.
You need to keep in mind that the crypto industry is still largely unregulated, despite authorities’ recent struggles to create viable legal frameworks that could provide some degree of protection to customers. Therefore, with many scammers roaming free and posing as influencers, the risk of falling victim to a crypto scam is elevated.
Obviously, not all crypto influencers you come across are out to get you. Oftentimes, they actually have honorable intentions, but just because they don’t want to cause you any harm doesn’t mean they will do you good. That’s because most of these crypto influencers who claim to know all the ins and outs of the industry aren’t experts in the true sense of the word.
If you do some background checks, you’ll find out that a very small percentage of them have the necessary qualifications to offer advice on crypto trading and investing. One may argue that the crypto industry is still very young and there aren’t many institutions providing training and certifications in the field. However, there are several reputable resources and programs that can help people acquire the necessary skills and knowledge and transition from crypto amateur to certified professional. So, unless a crypto influencer holds a valid license that can prove his expertise, they’re not in a position to instruct others.[related_link]
The Exceptions to The Rule
It would be wrong to make blanket assumptions and put all influencers in the same box. Certain crypto influencers are worth following for their honesty, experience, and deep knowledge of the cryptocurrency space. A few of them have developed their own crypto projects or have been involved in the industry since the very beginning. Vitalik Buterin, the co-founder of Ethereum, Michael Saylor, the Executive Chairman of MicroStrategy (MSTR), tech entrepreneur Andreas M. Antonopoulos, and tech investor and entrepreneur Anthony Pompliano are some of the experts that can help you learn more about this fast-paced industry and stay on top of crypto trends.
Also, influencers are not the only reliable sources of information you can use to find the answers to your questions or expand your crypto knowledge. In fact, you can get much better advice and guidance by consulting and exploring other venues such as legitimate crypto exchanges, reliable news sites that cover crypto topics, or crypto projects’ official websites.
While crypto influencers may seem like a great source of information due to the approachable and friendly manner in which they present themselves and their content, you should think twice before taking their advice. It’s best to be cautious and do your own research using a variety of trusted sources so you can get a well-rounded view of a situation and make smart decisions.