Guides · Easy money, trading and scams: the truth
How to recognise a financial bubble
In short: A bubble is when a price rises far beyond what earnings or real usefulness justify, driven by enthusiasm and fear of missing out. They are often recognised after the fact: when they burst is unpredictable.
Common signs
Prices rising very fast, everyone talking about it, people borrowing to buy, the phrase "this time is different".
Examples
The 2000 dot-com bubble, US housing before 2008, several crypto cycles (2017, 2021) where many coins lost more than 80%.
What to do
Don't put a large share of your savings into one trendy asset, and watch out for your own FOMO.