Bitcoin hitting $104,000. Insane, right? We know—you’re reading the news releases, you’re watching the green candles, and perhaps worse yet, you’re feeling that old urge return—the FOMO. Before you remortgage your house and dive headfirst into the crypto pool, let's pump the brakes and ask ourselves a crucial question: Are we investing, or are we just gambling with extra steps?

Echoes of Dot-Com Mania, Anyone?

Remember the late 90s? Pets.com, anyone? Promissory notes for wealth based on, um, air. The internet at the time was this new and exciting thing that everybody wanted a piece of. Today, the hot ticket is Bitcoin and Ethereum, which has totally jumped up 21%! As we saw this past year, a new crop of altcoins—most notably meme coins such as DOGE and SHIB—are stealing the crypto spotlight. Global Crypto Market Cap went up by 5.59% in the past 24 hours to $3.27 trillion. Whether we’re learning from history or fated to repeat it.

Here's an unexpected connection: The South Sea Bubble of 1720. The common man mortgaging his house to purchase shares in a company dealing with the South Seas. Sound familiar? Euphoria is a strong drug, particularly in competitive markets. Sometimes, we get distracted by the excitement of easy profits and overlook the dangers lurking beneath the surface. In all candor, how many of us really know what these digital assets are built on? We’re gambling on stories, on hoopla, on the hope of “number go up.”

Fear & Greed: Puppets On A String

The Crypto Fear & Greed Index is recently hovering around the “Extreme Greed” level at 70/100. Read that again. Extreme Greed. That is yet another outrageous hit, and it should be a bright red warning bell not an indication that they should purchase further.

Think about it. Much of the recent spike in prices has been due to the emerging adoption of spot Bitcoin ETFs. Great. Institutional money is flowing in. What do you do when those same beautiful institutions choose to put profit over people? What happens when the macroeconomic conditions that so favorably exist now shift? Who will be left holding the bag?

We're all susceptible to these emotions. FOMO, or the fear of missing out, pushes us by fire. It challenges us to draw conclusions we otherwise would not be willing to draw. Solana (SOL) is up by 12%, while XRP has increased by 10%. This unexpected increase has us excited to be a part of the action so let us tell you how! Like all contests, for every winner there’s a loser. The altcoin market, though presenting the opportunity for massive returns, is flooded with scams and rug pulls. PEPE is up 41%. FARTCOIN is up 28%. Are you serious right now?

Protect Yourself From Crypto Predators

Here's where my center-left sensibilities kick in. The wild west of crypto needs taming. We should implement much stricter regulation to make sure vulnerable investors can’t be preyed on by these practices and these outright scams. Have you read tales of retirees being wiped out of all their life savings? Unfortunately, many of them were led astray by colorful altcoins shilled by star influencers. It's heartbreaking, and frankly, it's infuriating.

Regulation alone isn't enough. We all need to take personal responsibility for our own financial security as well. That requires thoughtful deliberation, putting the work in to know the risks, and avoiding chasing shiny objects that lead investment decisions through an emotional lens. Last but not least, don’t invest in crypto money that you can’t afford to lose. Don’t wager more than you are willing to lose.

Bitcoin boom should not become your personal bust. Approach crypto with caution, with a healthy dose of skepticism, and with a realistic understanding of the risks that are inherent to the technology. That’s because the line between euphoria and recklessness is usually razor thin. In the crypto world, that line can be the difference between financial independence and financial destruction.

  • Diversify: Don't put all your eggs in the crypto basket.
  • Research: Understand the technology and the market dynamics.
  • Set Limits: Determine how much you're willing to risk and stick to it.
  • Seek Advice: Talk to a qualified financial advisor.
  • Be Skeptical: If it sounds too good to be true, it probably is.

ETH, PI, PEPE, MOODENG and DOGE are among the ones trending right now. Analysts are cautioned that volatility will increase in the short term.

Are you making good long-term investments, or are you just following the buzz? The answer could determine your financial future.

Are you investing wisely, or just caught up in the hype? The answer could determine your financial future.