The “Counterintuitive” World Of Cryptocurrencies
The Outside World
There is a massive chasm between the true world of Cryptocurrencies and the one seen by the outside world. If you are watching the Crypto space from the outside, chances are, your opinions are being formed by other misinformed personalities and entities. This creates a scenario of the blind leading the blind. Essentially, one large echo chamber of misconstrued facts and perceptions… a rather dangerous place to be!
Needless to say, Crypto is a rather unique industry and is home to many technological breakthroughs and advancements that are busy reshaping the world as we know it, and not only the financial world. Tokenization and WEB3 are busy disrupting old and outdated legacy models that no longer serve society efficiently and acceptably. Whether you like it or not, we are in the heart of a technological and financial revolution.
For many, Crypto is seen as an enormously risky sector. Some, even consider it to be an outright Ponzi scheme/scam, amongst many other outlandish ideas and comparisons. However, if you are knowledgeable and experienced, it’s one of the most, if not the most lucrative income and wealth-generative opportunities on offer in the open market. Retail investors have been given the most amazing opportunity, in that they have been able to frontrun financial institutions.
Taking Risks Removes Risk
It sounds counterintuitive. However, choosing to shoulder the risks as an early investor, works to eventually remove the risk of financial loss. It might appear to be safer, to buy BTC now, once major institutions such as BlackRock are on the scene. However, a market crash would plunge you into a floating loss. Early investors, on the other hand, have removed this risk completely. Investors at $100 and below are likely to never be exposed to a loss, regarding their initial investment.
This very simple dynamic has a way of disguising itself from traditional thought patterns, and what you find in its stead is a somewhat deceptive practice being viewed as the safer option. The reality is it was a lot safer buying BTC when it was a lot more speculative and lacking endorsement, as opposed to buying now. This is precisely why I don’t view micro-caps as risky, even though the majority of investors do.
Why is that? Well, if I do my homework, conduct sufficient research, and make well-informed decisions, I am likely to see good results. Regular readers can attest to this fact. Many of my altcoin picks in this bull market have already gone on to rally significantly. Ultimately, mitigating the risk of financial loss, regarding initial investment capital. It’s something I have endeavored to drive home in numerous blog posts… for the simple fact that it’s so very powerful, even though it “appears” risky.
Getting in early has numerous benefits, from significant profitability, to the mitigation, and even, eradication of risk. I guess it’s very much a case of…
Fortune favors the brave.
Choosing to wait for the market to validate an investment vehicle is quite simply, choosing to leave gains on the table. Essentially, this is at the heart of identifying alpha.
Final Thoughts
Outside of such an approach, you are unlikely to uncover alpha. Regardless of how risky it appears… this is how investors secure 100X returns and more! As mentioned, this should never be considered, or executed outside of exhaustive research. Well, I’m off to uncover some more hidden gems. All the best and keep Stacking!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.