Do not be afraid to invest in a coin, project, business... anything. Okay?
The above statement is something you must have heard on one occasion if you are the type that likes to explore finance-related topics. It highlights the element of 'fear' which is visible in humans whenever there are uncertainties.
Investment in itself is all about uncertainties. You are never too sure of how things will work out. You mostly have to estimate what to gain by investing and hope it all works out. If it goes as planned, it becomes a good investment. If not, then... that's a bad investment.
This uncertainty that goes with investment is one of the factors that strikes fear in people whenever they want to take a step in the direction of investment. It gets worse if the person's track record of investing has not been yielding favourable results.
That's exactly why many people snooze in the face of investment opportunities. As they say, 'if you snooze you lose'.
I'm one of those that so much believe that not having been somewhere does not mean you cannot go there. I know so many people have hit the jackpot as investors and I genuinely want to be one of those.
Being afraid of the 'uncertainty' that comes with investing is something we all have to deal with. After all, no one wants to lose money unnecessarily. It's also a fact that we have to face our fears to reap the benefits of being investors.
Now, let's explore the things you can do to reduce the risk associated with investing;
For the record, these things only reduce the risk. It gives you a feel-good attitude and strengthens your resolve while investing your money, but it's never a guarantee that the investment is free from risk.
1. Do Your Research (DYOR).
It's such a cliche, right? I know!
DYOR is an acronym that is so often overused in Cryptocurrency and investment as a whole, but that genuinely is a fact. You've got to form the habit of doing your research to know what is what before putting your money on it.
Many people hear the hype, follow the hype due to fear of missing out, dump their cash on the hype and... the rest is history. That's an unhealthy investment plan and it usually exposes an investor to so many risks.
2. Do not put all your eggs in one basket.
There goes another cliche which is also an undeniable fact.
Cryptocurrency gives us a good example in this regard. Regardless of how much you love a particular Crypto project, putting all your money into it will be the same as asking for trouble.
Even in a place like Hive, despite all the love we have for Hive as a Crypto, we still have some of our investments in form of HBD and Hive Engine tokens to save our ass from any short-term shock that may negatively affect the native token of the chain.
That is diversification. It helps you to spread out the risk associated with investing.
3. Always have your eyes on your assets.
Now, we believe you have already done your research and invested in a couple of projects. You now have a portfolio of investments, but that's not where the story ends. It is only the beginning.
As an investor in a particular project, you need to be well informed about the moves the project is making. That information may be a hassle to keep track of, but it's worth all the effort because it gives you a fairly good idea of when to have more faith in a project and when to start pulling out your fund.
The interesting argument built around this is that it is mostly a technique adopted by short-term investors. That has some elements of truth in it, but I see no reason why anyone will put money into a project without keeping track of the progress just because the person is a long-term investor. Haha.
This is pretty much where we will be ending our discussion on this topic for now.
If you have an idea of other things that can be done to reduce the risk associated with investing, feel free to share it in the comment section. It will help us massively.
Thanks For Not Missing Any Full-stop Or Comma
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Here are helpful reasons one need to take into consideration and would help give a positive attitude towards investing
Well done, champ this is a good one
Exactly. Investing can be scary, but it gets easier when we have these in mind
!hiqvote