Getting rich from cryptocurrency: The illusion of huge profits.

VTV.vn - Amidst the whirlwind of getting rich from cryptocurrencies, many people, especially young people, have rushed into this market hoping to change their lives after just a few "speculative moves".

Who is being swept up in the cryptocurrency craze?

Enticed by the prospect of getting rich quick, many young people invest in cryptocurrencies recklessly, only to realize that behind the "gains" are losses and unforgettable, painful lessons.

Recently, a series of cryptocurrency-related scams have been exposed, highlighting the risks and increasingly sophisticated nature of this type of investment. Worryingly, many young people are falling victim to these schemes.

Mr. TH (30 years old, an office worker in Hanoi ) said that he started learning about cryptocurrencies in mid-2021, when social media was flooded with information about Bitcoin, Ethereum, and other emerging "coins."

“Initially, I just wanted to learn about it, but then I saw my friends boasting about making 50-70% profit in a few months, so I wanted to try it too. At that time, Bitcoin was around $35,000, and everyone said it would reach $100,000, so I bought a few million to try,” Mr. H recalled.

Seeing how easy trading was—just download the app, deposit money, and click buy/sell—Mr. H. was quickly drawn into the whirlwind of fluctuating prices. “I once invested 20 million VND and made 3 million VND profit after a few days. It felt like winning the lottery. But then, with just one price drop, all the profit vanished, and I lost several more million VND,” he recounted.

Mr. H realized that what made cryptocurrencies attractive was the ability to buy them with very little capital. Just a few hundred thousand or a few million VND was enough to own a piece of Bitcoin. Everyone thought the opportunity was within reach, but in reality, the winners are usually those who get in early, while newcomers only bear the risks.

After experiencing many ups and downs, Mr. TH learned a lesson: "Some people say they can make billions of dollars from a 10 million investment, but few people tell stories of losing everything. I once believed that, and I paid the price for that very belief."

Without proper understanding and risk management tools, easy profit opportunities can easily become traps, causing many people to lose all their money overnight. Photo: Unsplash.

NQD (32 years old, living in Ha Dong, Hanoi) started learning about cryptocurrencies in 2022, mainly out of curiosity and a desire to "keep up with the trend." As a tech enthusiast, he quickly accessed numerous forums, investment groups, and online tutorial videos .

“I remember one time, my account increased by almost 40% overnight. But that joy didn't last long. Just a few weeks later, the price plummeted, and I lost almost all my capital. It felt like someone was draining all my blood,” Mr. D recounted.

According to Mr. D., the danger of this currency lies in the "gambling" feeling. People win a few times at first, think they're skilled, then become more reckless and believe they understand the market, until they lose their entire account.

However, Mr. D. did not completely abandon the market but maintained long-term investments with small amounts of money, considering it as learning material. "I understand that cryptocurrencies aren't inherently bad, but if you jump in with the mentality of getting rich quick, you're sure to fail. The most important thing is to be level-headed and disciplined," he said.

In reality, some people have made money from the cryptocurrency market boom, but most have simply been lucky in the short term. Without proper understanding and risk management tools, easy profit opportunities can easily become traps, leading many to lose everything overnight. According to experts, the knowledge gap and legal system are the main reasons why most individual investors fall into a losing streak.

"90% of investors could lose money."

Financial experts believe that cryptocurrency investment and trading activities in Vietnam have remained in a "legal gray area" for many years. Essentially, cryptocurrencies are not yet legally recognized currencies, but rather a form of digital asset, lacking a comprehensive legal framework to protect investors.

To date, only Government Resolution 05 on solutions to improve the institutional framework for developing the digital economy has been issued, aiming to build a legal framework for managing digital assets, digital currencies, and cryptocurrencies. This is considered the first step towards bringing this new type of asset out of the "grey area," moving towards a transparent and controlled management mechanism.

Accordingly, there are two main reasons why many Vietnamese people are flocking to this market. Firstly, cryptocurrencies are virtually unregulated by tax authorities and do not require declaration, making them considered a "tax haven."

Secondly, people's lack of understanding is exploited through seminars, investment groups, and excessive promotional activities. Many are drawn in by promises of "huge profits," while the nature of the transaction is that later investors pay earlier investors, and the true value of the asset is almost negligible.

Cryptocurrency is not yet recognized as a form of currency under Vietnamese law; it is merely a digital asset subject to transactions, and there is no comprehensive legal framework to protect investors.

Dr. Dang Minh Tuan, former Chairman of the Vietnam Blockchain Alliance, argues that a clear distinction needs to be made between cryptocurrency and blockchain technology – a platform that can be legally applied in the financial sector. The government is currently allowing pilot programs for blockchain applications to issue digital assets; for example, instead of printed shares, electronic tokens can be issued. Essentially, this is a legitimate fundraising channel, similar to securities, but not currency.

This pilot program aims to bring the digitization of assets into a regulatory framework, serving the goals of combating money laundering, preventing tax evasion, and curbing fraud. If properly guided, blockchain could become a tool to help businesses raise capital transparently. However, in reality, most activities labeled as "virtual currency" in Vietnam do not follow this direction, but instead exploit the technology's name to solicit illegal investments.

Take the recent arrest of Mr. Nguyen Hoa Binh as an example. The perpetrators established companies, issued their own "currency," organized seminars, and conducted extensive advertising to build trust. However, the capital raised was not invested in any clear business activities; its value increased or decreased solely based on the number of buyers, not on any real-world basis.

Assessing the profitability of cryptocurrencies, Harry Vu, Chief Operating Officer of SotaTek technology company, offered a comparison: “In the stock market, which has a legal framework and a higher level of trust, up to 70% of investors still lose money, with only 30% making a profit. With cryptocurrencies, this number is even harsher: 90% of investors could lose money.”

A report by VinaCapital also indicates that approximately 17 million Vietnamese people are currently involved in cryptocurrency trading, with a total annual transaction value exceeding $100 billion. The majority of this activity takes place on foreign exchanges such as Binance, Bybit, or platforms in Singapore, South Korea, and Hong Kong (China). This reality reflects a strong wave of investment but also reveals a lack of technical and legal understanding among many people who "invest in something they don't understand, simply because others are doing it."

Mr. Vu advised that investors should make wise strategies and choices by thoroughly researching the reliability, the team behind the project, the development roadmap, and the practical application of projects before investing. If a project cannot clearly answer these questions, it is highly likely to be a risky platform.

The digital asset market in Vietnam is at a turning point, offering both opportunities for growth and inherent risks. Perhaps the most urgent need now is to quickly establish a sufficiently clear legal framework to protect investors while encouraging innovation. Once transparent oversight mechanisms and regulations on issuance and trading are perfected, the market will gradually differentiate between legitimate blockchain applications and disguised speculation. Only then can Vietnam truly exploit the potential of the digital economy without encountering the multi-billion dollar market crashes seen recently.

Source: https://vtv.vn/lam-giau-tu-tien-so-ao-mong-loi-nhuan-khong-lo-10025091116122719.htm