In the last few months, a lot of newcomers have joined the crypto economy hoping for extremely high and unrealistic earnings. Mass media and social networks have been partially responsible for this. I have seen many banners and articles about “a rich guy who earned millions of dollars by investing a few bucks”. There’s no denying those types of people exist. That’s not a myth. However, there are only a handful of them out of thousands of crypto investors. Honestly, I think that if you want to be one of them, you just need to follow the right steps: first, you should have specific knowledge about this technology before investing, and you should also be careful to try and choose the right project. Not all of them grow to be a thousand times bigger, and having the wrong mindset about it has become noxious for the cryptocurrency ecosystem, because a lot of people have been investing their money in scam projects, without even analyzing them.
Nowadays, a lot of newcomers think that investing in an ICO equals to at least twice their investment in a matter of days, and many projects have been adopting this attitude hoping to receive massive amounts of money, and fill their pockets. As a matter of fact, there are a lot of projects that have nothing to show but words, while asking for unnecessary funds from the community. Not every project is that way though, but there sure are many of them just playing with people’s emotions and receiving money from inexpert investors. How can people expect their money to grow tenfold in a matter of weeks or months, if the project they’re willing to invest in is raising over 80 million dollars, and the market cap for their top competitor is only 50 million?
On the other hand, there are a lot of legitimate projects that start with low market caps, and have not been receiving proper attention, so they just get lost in the shuffle. Smart investors must analyze a ton of factors before investing any money in a project, and they should ask themselves what will the value of the company be at the end of the ICO, and how much money are they asking from the community, because sometimes they ask for unnecessary funds and manipulate people by being greedy.
For me, a safe way to do an investment in crypto is analyzing every project and waiting until the right one comes along, and once you find it, your investment could grow fifty or a hundred times. If that happens though, you have to be prepared for unexpected events, such as facing a bear market, in which case it would be smart to hodl your cryptocurrency. You should also hodl when your investment increases three to five times, but the most important thing is having a strategy. One that could work is selling a little percentage of your tokens or coins to get your initial investment back, but you should hodl a large amount of them if you really believe in the project. That’s a strictly personal strategy, but having one is highly recommended.
As you can see, expectations are very different from reality, and you have to put in a lot of work before making an investment. If you choose wisely, then you can expect big returns. One thing people should have in mind is that the crypto market is as unpredictable as life itself. No one knows what will happen in the future, because unfortunately working crystal balls have not been invented yet, so you should remember that every action has consequences.
I would like to conclude this entry by showing two examples of “what if” and “are they regretting their choice?” scenarios. Here’s the first one:
What if this guy hadn’t sold his Bitcoins in 2010?
This is the second one:
Do you think this guy is regretting his choice?
In summary, you should study and analyze the project you want to invest in, and not sell your tokens too early if you really believe in the project. I encourage you not to be like the guys in the examples above.
What about you? Why did you start trading crypto, and what do you expect from it? Feel free to share your thoughts below.