Without financial education, do not invest in cryptocurrencies

There is no doubt that education is always an important factor in life, in any field, even more if we talk about investing our money. Many people have lost money because of not having a financial education and falling into scams or not knowing very well what they are doing with their money. Now, this article is not intended to be a financial advice, but it tries to stand as an enlightening reflection on the nitty-gritty of crypto investments.

No one has said that cryptocurrencies in essence are commercial investment assets, in essence they have been built to propose a new monetary paradigm outside of banking entities. But, time has made cryptos a whole market, with its own stock exchange style dynamism. Making that any person or institution that intends to invest in cryptos needs some basic financial education. So I will mention below, according to my criteria, the minimum necessary to take into account in order to make an investment.

The first thing to do is to investigate well the asset in which you want to invest, do not act by FOMO, investigate which projects endorse and support it. Study the graph that evidences the behavior it has had in the market since its beginnings. After this, we have to make sure we have an emergency fund, we cannot invest our capital without having a backup to rely on in case the worst happens (losing our money). Do not be willing to invest what you are willing to lose, and this seems to me a crucial aspect. Because even if we bet on winning, there is always a possibility of losing all our money, remember that the market is very fluctuating.

Do not invest in any asset by mere fashion, as everyone does it I will do it, remember how dangerous FOMO is. Keep in mind that cryptos are speculative assets, so always keep in mind the law:

"Buy low and sell high".

And at this point, I intend to go back to the beginning of the article, because never, but never, dare to invest in something you don't understand. I know well that terminology such as Blockchain, DeFi, stake, proof of work, stablecoin, altcoins, are not the most friendly if you are a novice in this world, so my emphasis on the study, understand well every aspect of the asset in which you want to invest, and also know as much as possible the market in which you are going to enter, because not every market is the same. So, at the moment of investing, do it with responsibility and solid criteria. The truth is that Cryptos such as BCH offer us a whole new panorama of opportunities to grow, to generate wealth. We are undoubtedly facing a financial revolution. I feel that, wandering in the crypto world, is walking towards the future of finance.

Thanks for reading, and remember this was a personal opinion, not financial advice.