Why Is It Important To Research Before Investing?

Investing is investing. It should give you higher returns in the future, better ROI, and be a smart move. But why do we need to research first before jumping into investments? It's because of the simple reason that there are numerous investment opportunities out there. And if you don't explore, you could invest in something that will never give you any returns.

Since most of us are into cryptocurrency nowadays, we are somehow well aware of the dangers of not doing proper research on some projects. I am not keen on such details because I believe I will still earn them in the long run. But lately, I have been pondering why we should do our research.?

To avoid losing hard-earned money is the most straightforward answer. But if you're a long-term investor, it's not just about avoiding losses but also maximizing your returns. I came up with this point because so many people out there want to jump on the bandwagon of a particular project just because it's hot and trending. They don't care about its potential, viability, or even whether you can call them a scam or not.

All they want is to ride on their popularity and make some quick money, just like what happened during the 2017 bull run. (I ventured into crypto the same year but I am not aware of much compared to now) Most people are still doing it even now when the price of bitcoin has dropped significantly from its all-time highs. It is the bear market, and as we are experiencing some portfolios in green from the previous years, they are as bloody as ever.

The bear market is not bad if you know how to use it properly. You can learn more about this in our video below.

To get the proper background information, when NFT games started, anonymous developers and people hail some projects that can promise fast returns. I had also invested in some of them and lost a good amount of money. I did plan to run away from it, but it was too late. Some projects got abandoned by the developers and got down into oblivion. I am not sure if MyDefiPets is still operating, but I think that one isn't good stuff anymore.

To keep up with the trends and developments in investments and technology, I looked for more information and got into some of the new games. I found many NFT projects out there that are promising and have great potential. But some don't. Right now, I am focused more on projects offered in the Hive blockchain as some of them are already stable, and if in case that I lose something, it isn't that hurtful as most of the stuff I used is from the earnings in my post.

Making your investment decisions based on facts rather than emotions is essential. I have seen that some people make decisions based on emotions and get into panic mode when they lose something.

If you are planning to invest in something, you must do your homework first and ensure that the project is legit before making a decision. You should also note that most of the projects in the blockchain are still in beta mode, so there's no assurance that they will become successful in the future.

On the other hand, some people don't want to lose anything, so they hold on to their assets even though it is no longer a good investment. For example, if you bought an ICO for $1 and now it's worth $0.5, it's time to sell or move your holdings elsewhere.

It is essential to research before making any investment decision to ensure you make the right choice. Since you are investing your money already might as well give it your all now and do the proper personal research. Don't be like me.