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Well said, I think that's the golden rule right there. The big variable then is how much risk one is willing to take.

My approach is to invest in a large numbers of projects but invest a little in each. That way if one turns out to be a scam or if it goes to zero, it will not wipe you out.

Well, That's really nice thinking. I do the same so far I've invested in 4 Altcoins.