Understand your Investment

in #leofinance3 years ago
Authored by @Me

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Want to know why (I feel) the crypto markets can react as strong as they did over the sentiments of one man? It is because a sizeable number of players in the game do not understand what game they're playing at all.

A lot of newbie investors simply started throwing money at a few crypto coins because of sentimental reasons; like the richest man in the World said so, or my neighbor made so and so huge returns after putting Little investment.

The free publicity received from Musk at the time definitely should and would have got many people curious. Where the error lies though is that many of the newbie investors who took the bold step to invest, did so without knowing exactly what they were putting their money into.

Understanding your investment is basic financial advice. Trying out something just because it's popular or has worked for others without trying to find out why it worked is a recipe for disaster.

I have personally had to educate some of my friends and familiars over the past few days on why they shouldn't liquidate their crypto stakes, but rather stack more.

The beauty is that an in-depth Knowledge isn't even required, sometimes it's as simple as learning (and I mean really learning the basics).

This goes beyond the blockchain though. Anything we feel is worth risking for potential returns should be considerably understood at the very least.

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It's amazing how many don't listen to real advice and just panic sell when there's a dip and but when there's huge hype. It all makes for massive losses and press them off for life. Or at least, till the next bull!

Agreed. I've been there before, took the next bull cycle to regret my actions (or in this case inactions). Definitely more grounded now, not making the same mistake again.

Thanks for the follow BTW.

Yar welcome!

I think we all learned some harsh lessons in the last bear. I am thinking we might all be laughing in the very next bear. Hopefully this one isn't finished though, its too soon!

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