Cryptocurrencies have totally taken the internet by storm thanks to how many there are, and also how easy it is to use them to earn massive amounts of money by investing in the right currencies at the right time.
Because there is so much money to be made investing in cryptocurrencies, there are so many unique methods to go about doing it and so many unique ways in which cryptocurrencies promote themselves, this can include the practice known as “Shilling”.
But what is shilling crypto?
You may have found yourself encountering the phrase ‘“Shilling Crypto” at some point. And you may be wondering exactly what it means, and why you may end up hearing it.
If so, make sure to keep reading down below, because we are going to find out all you need to know about shilling crypto!
What Is Shilling Crypto?
Put very simply, shilling is when a person of some status, such as a celebrity, politician, or influencer makes a point of advertising something, such as a product or a project.
This is why, whenever an influencer gets involved with cryptocurrency or any such project, many on the internet will describe them as “Shilling Crypto”!
Is Shilling A Bad Thing?
Most of the time, when an individual is described as “Shilling” something it is made out to be a negative thing. If an influencer is described as “Shilling crypto”, you will pretty much only ever hear it referred to in a negative context.
Many official dictionaries, such as the Merriam-Webster dictionary do not yet make reference to the current definition of “Shilling”, and instead make mention of how a “Shilling” once used to be an important element of British currency.
Arguably, in most contexts, “shilling” would be considered to be a bad thing, because of the fact that it conjures up images of advertising, which most people would claim to be directly adverse to!
Generally, you will want to make a point of avoiding shilling, however, as the crypto market is inherently very volatile, and is given to changing and shifting at a moment’s notice constantly.
Thus, buying right into a shilling campaign and investing massive amounts of money into a crypto project when there is still a risk of that particular market crashing is a very foolish move to make.
However, those that shill cryptocurrencies tend to be very convincing, especially considering that you may already be familiar with the people shilling them for you!
This is why shilling campaigns are most often carried out by celebrities or influencers, who already have some amount of sway over people!
How Do You Keep Yourself From Giving In To Crypto Shills?
Have you encountered some cryptocurrency shilling on the internet recently? Worried you may find yourself influenced by it? Then make sure that you do a few things to keep yourself safe, and to avoid investing in the wrong places!
Do Your Own Research
First, you will want to make sure to always do your own research on every cryptocurrency.
If an influencer tries to tell you that a cryptocurrency is a worthwhile investment, and tries to use statistics to verify it, make sure to scrutinize those statistics with your own research.
Oftentimes, influencers who are engaging in shilling may overstate the value of a particular cryptocurrency, so it is important to always be critical.
Background Check The Shiller
Make sure to also get a sense of who the person shilling the cryptocurrency is. Do they have the right credentials to make them an authority on the subject of cryptocurrency?
Do they have a history of shilling for cryptocurrencies that have inevitably experienced a crash?
If they do not have good credentials, or they do not have a good enough grasp on the market, and they are not in some way officially recognized as an authority on the market, then do not take their shilling as gospel.
Don’t Give In To Peer Pressure Or FOMO
When a famous influencer is shilling a particular cryptocurrency, then it can be very enticing to jump right in and invest yourself. This can especially be the case if you have peers or fellow fans that are also getting involved with the same cryptocurrency.
In such cases, you may find yourself making a significant investment because everyone else is.
This is the role that FOMO can play in cryptocurrency shilling.
Those that shill for cryptocurrencies will prey on the susceptibility for individuals to give in to peer pressure and FOMO by advertising the idea that the currency will only ever result in a return on investment.
This gets people to be more willing to invest because they don’t want to be the one person that missed out because they were too hesitant.
However, the promise of a strong currency is often very flimsy, as most fad cryptocurrencies eventually plateau or even crash, despite appearing very strong, to begin with. This can lead to a lot of wasted investments, and thus a lot of wasted money!
To Wrap Up
As you can now see, the act of shilling crypto involves an individual, usually one of some social standing, such as a celebrity or influencer blatantly advertising a cryptocurrency in order to drive a heavy amount of quick investments from as many people as possible.
Shilling crypto is not inherently bad, as it can lead a cryptocurrency to gain some market strength and become a strong currency. However, many who shill crypto do so with ill intentions to make a quick buck from the susceptibility of average people.
Thus, shilling crypto is often considered to be a negative behavior, and the term “Shilling” often takes on some very negative connotations!
Frequently Asked Questions
Is Crypto Shilling Legal?
It may actually surprise you to learn that shilling is illegal in more traditional financial markets, due to the impact it can have.
However, because the cryptocurrency market is still a burgeoning market in its infancy, there are not yet any regulations against shilling cryptocurrencies. So it is still technically legal.
Where Can I Shill Crypto?
The platforms that most people flock to in order to shill cryptocurrencies are social media platforms like Twitter, Instagram, and Facebook.
These sites make it easy for shills to get into contact with people that would be susceptible to the promise of cryptocurrency, thus increasing the odds of large investments.
Many influencers on platforms like YouTube use their platform to shill crypto, thanks to the fact that the YouTube algorithm with naturally push their content to audiences that will be receptive.
What Are The Disadvantages Of Cryptocurrency?
One of the main disadvantages of cryptocurrency is that it takes a lot to actually understand it, which means that an individual must put in a lot of time and research in order to even understand the currency that they are buying up.
The cryptocurrency market is also incredibly volatile, which can make it an incredibly risky investment to make.
Paul Martinez is the founder of BendingDestiny.com. He is an expert in the areas of finance, real estate, and eCommerce.
Join him on BendingDestiny.com to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.