Hi Everyone,
Cryptocurrency and the Blockchain can be extremely trying on your emotions and finances at times. I wanted to share how I stay positive throughout those tough times, which in turn will hopefully help those of you who are struggling to stay in the right frame of mind (tough times boil down to bear markets for those from the Cryptosphere).
Personally I approach Crypto from an investors perspective opposed to that of a traders, investment vs. trading strategies are completely different and should be treated that way. Trading not only takes extreme skill and patience like identifying the hidden gem investment but also carries a heightened level of emotive discipline, not something which should be taken lightly.
When entering an investment extensive research beforehand is paramount, identifying a projects/companies coin/token you are going to be buying should not be rushed, 'FOMO is the devil' below I outline some criteria I have for selecting an investment, this is not an exhaustive list;
- Funds raised? - ICO/IEO
- White papers vs. road-map delivery - Are targets being met, are the team being transparent.
- Community - channels, public and team engagement and size.
- Company - Team size, infrastructure
- Working products - 90% of projects do not have working products, find those that do, gauge the use case and scalability.
- Partnerships - (real partnerships not the infamous crypto version)
Once the boxes are ticked I invest ONLY what I am willing and can afford to lose, even the most perceived risk free investing carries risks, nothing is guaranteed. Risk engagement is extremely important when it comes to investing.
My strategy is not to put all eggs in one basket. Select several coins/tokens to invest in calculating % of funds invested vs. the risk level of per coin/token.
If you follow these principles when investing you should have a lot more confidence that even when the prices are plummeting, you're backing the right project/company and the trend should change in your favour.
DISCLAIMER: Nothing written is investment advice, these are my personal views.
