How To Win In The Crypto Space (Part Two)
Below is the link to the first part of this article
https://read.cash/@Talon/how-to-win-in-the-crypto-space-part-one-9b257efe
Note: This article is not and investment advice, it's for educational purposes only. I'm not an investment or crypto consultant, neither do I have any relationship or affiliation with any person of that sort. Please, always do your own research before you invest in any project.
Know Why You Want To Invest In A Project
With the barrage of projects launching in the crypto space, it's impossible for everything to interest you. After having research a projects and the opportunities it offers, you need to ask yourself the question of what you want from the project. You need to know this, as it will play a key role in your investment strategy as well as how much you invest into it. Why some may invest just to catch a quick buck, others might want to invest to support a project. There's no right, wrong or perfect reason, the important thing is for you to answer that question for yourself.
Guage Your Investment
Having done proper research on a project, you must have come to a conclusion on how viable the project is, which also means you would have decided whether or not you're going to invest in it. There are some projects that you'll be very confident about and there are some you won't be so confident about but won't want to miss out on if they turn out well and son on. It's imperative that what you invest in any project you decide to invest in, is a reflective of your confidence in the project.
You should guage your investment according to the probability of success and profit. Take for example, you have $1000, and you've selected three projects to invest in. Project A looks solid, with a good and realistic roadmap, project B on the other hand looks kind of okay, but has great profit potentials, while group C has a lot of great promises with quite an unrealistic roadmap, but you are afraid you might miss out if you don't risk it. In a scenario like this, it would be utter madness to invest say $500 in project C. Guaging your investment will result in something like $600 to project A, $300 to project B, and the remaining $100 to project C.
Spread Your Risk
At any one time, there are more than one viable and solid project on any chain you choose. Investing is all about leveraging and betting on risks, and of we're been honest, anything can happen really. This is why you need to spread your risk and not put all your eggs in one basket. It's advisable to invest your funds in two or three good projects. In the case of a failure in one, you'll not be left with nothing. Imagine putting all your money in a project like BCH towns, how would you be feeling now? But if you were to invest that money in say $Joy, $Law and BCH towns, you'll still have $Law and $Joy going for you. Spread your investment, spread your risk.
Have A Strategy
Another thing you need to know is that you will have to develop a strategy beforehand. Again, there's no right way or wrong way here, the point is that you have one and master it. Some people get into projects just to make a quick buck off the hype, while some a long termers. Others are opportunity seekers and just want to make money of the pumps and dips.
This will also entail how you commit the determined funds, for example, some prefer to invest through pre-sale and make some quick bucks immediately the project launches, some uses ICOs, some will rather go for fair launches, while some would prefer to wait for the launch and buy the first dip. How you go about it is your choice. The important things here's that, even though the crypto space and market is erratic, you can't be erratic while in it, unless you have no intentions of making a profit.
Thanks folks, for always finding time to read my articles. I'm grateful
