There are several reasons why people buy cryptocurrency, even if they don't always know the "best" options.
Why so much excitement about crypto?
* High Return Potential: The main appeal of crypto is the potential for quick and significant gains. Stories of people becoming millionaires with modest initial investments fuel imaginations and the hope of quick riches.
* Technological Innovation: Beyond the financial aspect, many are attracted by the underlying blockchain technology, which is seen as a revolution for finance, art, gaming, and many other fields. The idea of decentralized, transparent systems without intermediaries is very appealing.
* Financial Independence and Decentralization: The promise of a currency that is not controlled by governments or central banks attracts those seeking greater financial autonomy. Decentralized exchanges (DEX) allow users to maintain complete control over their funds.
* Easy Access: Many centralized exchanges (CEX) like Binance have made buying cryptocurrencies extremely easy, even for beginners. Converting fiat currency to crypto takes just a few clicks.
*Fashion Effect and FOMO (Fear Of Missing Out): The media and social hype surrounding crypto creates a powerful ripple effect. The fear of missing out on a life-changing opportunity pushes many people to buy, even without a thorough understanding.
Why don't they know how to buy the "best" ones?
* Lack of Knowledge and Thorough Research (DYOR): The crypto market is vast, complex, and filled with thousands of projects. Many initial buyers rely on recommendations from friends, social media influencers, or news articles, without doing their own research ("Do Your Own Research" (DYOR).
* Extreme Volatility and Emotional Bias: The market is inherently volatile. Buying decisions are often driven by emotion (euphoria during upswings, panic during downswings) rather than a rational analysis of a project's fundamentals.
* Difficulty of Evaluation: Determining the "best" crypto is subjective and depends on the investor's goals (fast returns, long-term stability, technological utility, etc.). Meme coins, for example, like Dogecoin or PEPE, do not necessarily have strong technological utility, but can generate impressive returns based on community and virality.
* Media Influence and Noise: The market is flooded with information, rumors, and hype. It is difficult to distinguish solid projects from simple "pump and dump" projects (artificial price increases followed by rapid declines).
* Altcoin-Specific Risks: Beyond Bitcoin and Ethereum, many altcoins, especially smaller ones, carry high risks of drastic declines in value or even complete disappearance. Projects like Realms of Alurya and Wonder Wars have ceased operations due to financial difficulties, illustrating this risk.
* Lack of Fundamental Analysis Expertise: Understanding the underlying technology, development team, project roadmap, tokenomics (token economics), competition, and real-world adoption is a complex task that requires time and skill.
In short, while crypto's appeal is universal, the ability to navigate this complex market and identify the strongest opportunities remains the preserve of a minority of well-informed and disciplined investors.
