While it seems counter intuitive, the worst reason to invest in something is to “make money”. Let me explain. While making money is obviously the goal of investing, it should not be what guides you to choose your investment. The biggest payoffs come from investing in GOOD ideas, not simply ones that will make you money.
Chasing a quick payday will lead you only to scams. Pump and dumpers rely on you thinking this way to drive hype about their coin or investment of choice. Patience is key, as sometimes saving your time and money is a better investment. Which is a hard prospect for many to believe.
The best investments are those that you have taken the time to fully and fundamentally understand. Without that, your valuation of the investment is flawed. If you’ve got an accurate and educated valuation of a particular investment, that knowledge will make you more money than any pump and dump.
The people who truly made out from Bitcoin, Ethereum and other cryptocurrencies were the ones who realized their potential early on. The ones who were confident in their knowledge of blockchain technology knew that these currencies would be revolutionary. Knowledge and experience is the only way to stay confident during huge price dips that scare away so called investors.
Most people think that if you get enough money, you'll never go broke again. While money is one of the requirements for investing, it means nothing without knowledge to back it, and place it where it will do the most work.
When you’re truly confident in what you put your money into, you have no problem doubling down when everybody else is running away. That’s where the real money is made.
Have to know what your investing in.