Getting into crypto project during the early phase
Getting into a crypto project during the early phase can have both advantages as well as disadvantages. Both can be a balanced one but if we plan it very well, we can make it fully advantageous. Many projects start off very well and gradually slow down when it is ongoing. We cannot guarantee that all the crypto projects can be successful. There are many parameters to consider to earn money during the early stages of a crypto project. It can require a lot of patience.
Early bird gets the prey
I'm going to be comparing this only with my story. I invested only a very little amount of money on Splinterlands. I did make use of all the opportunities that Splinterlands provided. Even today I'm able to earn a small amount of money as passive income from the assets. People booking profits at the right time is the best strategy and that's when people can get more prey as early birds.
Investment can be heavy
Sometimes when a project is launching the cost of all the assets and all the project-related stuff can be very costly. Despite it being costly, many people buy it and wait for things to happen. Sometimes investment can be a heavy one based on how desperate we are to enter into the project and get the advantage of being an early adopter.
Heavy investment can vanish and become a small value as time goes on. This can happen if the project doesn't do very well. But at the same time, if the project goes very well, even the small amount that we invested will become a very big amount. All that we might need is the patience to wait and watch and also the capacity to take the right decisions at the right time.
Returns can be good
I just talked about heavy investments during the start of the project but we have to also understand that the returns can be very good. Some wise people start investing during the early days and does some heavy investments and if the FOMO starts picking up, the price may go up too. When the price goes up, people try to take out a part of their investment and if it picks up very well, people completely take out their invested value and anything we get above that is all going to be free. I have seen many investors following this strategy.
Returns can be good only for a short period and there is a high chance that price might go down if the market is not in a good condition. Booking our initial profits and having a decent holding too is very important. Anything more than that is going to be a bonus.
Booking profits early
There are both risks as well as good things in booking profits early. We have to be sure when is the right time to book profits. It can be during the early days but our profits should be booked only if we are satisfied with the profits. If we book profits very early even before the project gets kicked off can be a disaster for us because we may lose huge revenue but if we are satisfied with the profits we booked, it should be good. Crypto projects are unpredictable and that too during the early phase we cannot predict it. It might look as if the project is doing good but it can have a lot of problems that only people might know internally. In such cases, there is no point in waiting for the future.
