In the world of the Crypto project, there are some people who have committed unforgivable sins. Cryptocurrency has brought greed and self-price to a new and unprecedented level, where many investors have been setting the bar higher with their utter disregard for common sense. Each unforgivable sin is as follows:
1. Putting money into a coin because you “believe in the team”
It’s not 1921 and the stock market crashed, shares don’t produce dividends, and it’s not even legal tender. So why would you invest into something without understanding it? You invest because you believe that there are opportunities to make money in that particular coin; this is what the team should be working on. If they’re telling you they’re great or have a background together, don’t let them influence your decision to invest based on their “superior” coding abilities.
2. Investing in a project that doesn’t have a working product
I know this seems obvious but I want to say it anyway, you should do your due diligence. There are thousands of projects out there. Make sure there’s at least one project that has a significant working product before investing, otherwise if the community gets disillusioned with the project and drops it therefore making the token near worthless, you’ll be left with nothing.
3. Promoting your investment to other people
Do you know what happens when we start talking about our bets? We become blind to our investment. We start saying things like “this is the next Bitcoin”. We compare ourselves to others and forget about making money for ourselves. This is why we should have proper contracts in place before investing. Site detail is here.
4. Investing in a project that has zero documentation
I can’t stress this enough, this is incredibly important. Nothing scares away investors like a lack of documentation. There appears to be no code on GitHub, there’s no roadmap leading up to the ICO, and there’s nothing on bitcointalk. You should have at least one video that shows how the product works or is developed, otherwise you should look elsewhere for investment opportunities.
5. Buying a coin you don’t understand
Bitshares? Ethereum? Steemit? Do you know what these are and how they operate? If not, then you should wait and research them all before investing. And if you do invest, don’t compare yourself to others.
6. Over trading your investment
Remember this is not the stock market there’s no such thing as ‘cutting losses’. Just because the price of a coin drops doesn’t mean that the end is nigh and that everyone who has bought in the past two months will lose their money. There’s always room to bounce back, but only if you allow it.
7. Investing in pure no-name coins
This is speculative play at its finest. No one should ever invest in a coin without first looking at the team and understanding what it’s about blogger outreach. If you don’t understand the coin, then you shouldn’t be taking part in owning a part of it.
8. Investing in a project no one else has heard of
Don’t make this mistake, there’s dozens of projects out there that are so obscure that even the developers have no clue what they want to do with them. Before investing, make sure people are talking about the project and that there is some activity on bitcointalk. If not, don’t be fooled by the hype.
There’s a lot of potential investors out there that are looking to make money and there’s so many projects out there that are crying out for funds; we just need to be able to weed through them all and find the ones that have a chance. Being suspicious is one thing but if you overthink things it will cloud your judgment and making mistakes could cripple your portfolio.
You need to be able to control your emotions. When the price of a coin skyrockets, you’ll want to buy in, but don’t. And when the price of a coin falls, don’t panic and sell, it will rebound eventually.
10. The Pump and Dump
Remember this phrase; ‘buy the hype, sell on the news’. These people are all over social media looking for investors to put money into their projects. They’ll manipulate your emotions until you’ve only seen green figures and have no clue what’s going on. Don’t fall for it! Treat this just like any other investment opportunity; research, diligence and comparisons!
11. Forgetting that it’s a business and not a charity
When you first hear about an altcoin, you’re most likely going to hear about the political or humanitarian aspects of it. I understand that many people truly believe in the cause but in reality some coins will never be successful and the only reason they exist is because of the people who created them placing their own interest ahead of their communities. So don’t fall into the trap of thinking this is your personal donation cause; they are businesses, they want money!
One important point I’d like to make is that Crypto and token marketing is not for the faint-hearted; it will test you like no other investment industry. Don’t let anyone tell you that this industry is easy or can be bought cheaply; it isn’t. But if you have the tenacity and determination to research, and understand that this isn’t an investment without risk, then you’ll be on the right track.