How To Win In The Crypto Space (Part One)

With the explosion in the number of crypto chains and projects been launched everyday, it's really hard to know where to put one's feet, as one can not afford to be everywhere and in every chain. Even for those who can, it's hard to decide if their investment is safe or not, and understandably so. Hence, it's imperative to know some basics that will help one avoid most of the mistake that leads to loss of money or invested funds, which is a very common phenomenon in the crypto space. Here are a few tips from my little experience.

Note: This is not investment advice of any sort. I'm not a professional investment or financial consultant, neither do I know or have a relationship with anyone. This article is just my opinion and is written for entertainment and educational purposes only. Before investing in any project, do your own research.

Know Your Risk Appetite

In the investment/crypto world, it's really important we understand that there are different kinds of people. Take a group of friends for example, we might all like ice cream, but while some can only take one cup max, there are others that might be able to take up to five cups. We could call that their ice cream appetite; some have a bigger appetite than others. It's the same way in the world of investment.

Without been told, we all know every investment come with a certain degree of risk, while some are minimum, some are really high risk. We all have different risk appetite. For some, they prefer investments with minimal risk which characteristically come with little reward, while some people are quite open to the high risk investment that characteristically come with high rewards. Basically while some are risk averse, other are risk lovers and there are those who are at the middle and are open to moderate risk, whatever that is. So, to succeed in the Crypto space just like every other form of financial/investment space, you need to know your risk appetite. This will play a significant role in the kinds of projects you get involved with.

Do Your Own Research

In the ever seemingly complex world of crypto, it's hard not to give in to the temptation of herd mentality. This is especially hard as some of the established names in the space are almost always used as promoters, just to gain the trust of potential investors and community members. The thing is we have seen this people make a lot of money in this space and we take their word as yea and amen. Knowing that they are good at this investing in crypto stuff, we almost don't bother to do any research once we have heard their take on the matter, and this isn't healthy.

It might be a lot of work, but it's your hard-earned money (or not) and shouldn't be thrown away at just any project. You should always do your own research before you commit any funds, no matter how hard or tedious it is. This will help you filter out the bad eggs from the multitude of crypto projects launching everyday. Another benefit of this is that you'll gradually increase your knowledge of the Crypto space and soon enough you'll be good at it too.

Avoid Sentiments Or Emotions

There are some well known name in every crypto chain. Naturally, we tend to have a bias towards them. We assume everything they say is right. We can see this in sBCH where some devs use project their past resume every chance they get as if we are supposed to judge their current project by who they are. It's important to check the personality of the devs of course, but that's not all there is to it. It's not investment-wise to invest in a project just because you supposedly known the dev(s) or you a project they worked on before. That shouldn't stop you from taking an objective look at the current project before you commit any funds.

Assess Every Project On Their Own Merit

Just like I was saying under the last heading, it's important to not let yourself get blinded by sentiment or emotions while choosing a suitable project. This is something that I think was responsible for early rugs on sBCH. Seeing that the chain was new and the very first set of projects launched were quite successful, people got too excited and just assumed every single project on it was always going to be a success. This was the thinking until a number of projects rugged and people became more careful. Every project should be assessed on its own merit, its white paper, its dev team etc.

I'll continue from here tomorrow as I'm already quite sleepy. As always, I really do appreciate the time you spared to read my article. I appreciate it, really.