Investing and not educating yourself, a bad idea
Hello Project Hope community, I hope you are having a great weekend. With the bearish market current, new challenges have arisen, because it is largely related to what happened with the fall of Terra luna, as we all know, in addition to the other problems in the world that are doing their part in the fall of all markets, such as the pandemic, the war in Ukraine, rising interest rates, among other things.
I begin by saying that I particularly think that the situation is not going to improve for now, everything seems to be getting worse, not because I am pessimistic but because the situation in general is like this, quite complex, and there is no magic solution to all the problems. But we have to keep moving forward as far as possible, it is very important to back up capital, whoever has it, and to be very intelligent if someone wants to make investments.
A problem that I see to a large extent, even though I am not the most knowledgeable in the financial area, is that many people enter into any business, to make investments in different areas, including the crypto market, without a minimum of idea of what it is. This is a serious mistake, because when something is completely unknown, the chances of losing your money are much higher.
Educating yourself minimizes the risk of loss, but does not eliminate it completely. More when we talk about the cryptocurrency market, which is so volatile, where anyone in a fall prefers to sell at a loss before waiting for the next recovery, and then buy when it rises again ... a bad idea, especially if you want to make a profit quickly.
I don't think investing and then training is ideal, in fact, I think it's a lousy idea, however, it seems to be the most common way most investors enter the cryptocurrency space.
I have been in contact with many people who only enter to invest, to buy cryptocurrencies just because they know someone who did well by a stroke of luck, want to replicate that situation, and the chances of something like that happening is not the usual, they certainly end up losing the money they put in, assuming as a bet the process will not get anywhere, much less considering that this is something as serious as risky.
Assuming investments as if it were a gambling game is the worst thing that someone who wants to start investing can do, as he may end up losing everything and he will not be able to blame anyone but himself for not educating himself before getting into risky ground.
Thank you very much for reading my post.
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hello @josevas217,
Having a good education is essential to not lose money, many people do not investigate about the projects in which they invest, they act as if it were a bet, in that sense making the decision to know in depth what you are investing in will help you make money when the market is bullish.
Business and gambling are not at all the same thing, although there are those who take gambling quite seriously. But I am a believer that you have to educate yourself.
This is good topic and I hope people learnt from this. If you are not educating your self you will lost alot of fund in the cryptocurrency ecosystem.
Undoubtedly, it will be lost. Although educating yourself is no guarantee that you won't lose. But still, it is always good to minimize risks through education.
Hello @ josevas217, thanks for sharing such an important position on this topic, which is of great interest to many of us who make lives on the platform.
Certainly we spend our lives trying to repeat lucky breaks from our friends and acquaintances, without giving ourselves the valuable task of having to investigate and document it. The real problem is that we like this comfort and we do not want to contribute our effort. Greetings
Imitate lucky breaks,. That is really difficult, and even so, many keep on trying. It's complicated, but well, you have to learn.
This is a very nice topic you raised here. Before investing, there is a need for the person to have at least a background knowledge of what he wants to invest in. In crypto space, it is called DYOR (Do your own research).
Excellent read buddy
DYOR, I didn't know it was called that, thanks for this tip. Thanks for commenting.
Hello dear @josevas217, I hope you are well, what you mention in your article has a lot of logic, before placing your money in any market or platform you should investigate very well about it. On the other hand, at present it seems that the inflation in the United States is affecting all markets, there is talk that this country may suffer an economic recession and interest rates will increase. Let's hope that many companies will migrate to the crypto market and that this could help considerably.
See you later, have a great weekend.
Indeed, interest rates have already risen.
And it looks like it's going to get worse.
Dear @josevas217
It has been few days since you published this article, so I'm not sure if you're still going to read any new comments. Let's see :)
You have a good point here. Investing without prior education may cause our wallet a great amount of pain. However, I do not agree 100% with you as a consider some exceptions.
I myself like to invest small amount of money (assuming I will lose it all) into projects, which I like to learn about.
For example: lately I got 100$ worth of UST and another 100$ worth of LUNA. I may never see those fund agains. But it prompted me to learn way more about that project, its founder, token economy etc.
If I would not invest a penny, then most likely I wouldn't care enough to educate myself about this project.
In a way: I like to have "skin in the game". Hopefully Im making sense.
Enjoy your upcoming weekend :)
Cheers, Piotr
Hi @crypto.piotr
It is an interesting approach. I hadn't seen it that way. It can be a way to start an investment, indeed, especially if someone takes it on like that, with the goal of learning from the project, regardless of whether they lose money or not.
But I particularly prefer to at least get a glimpse of what the Project is about before I dive in with investment. But, these are personal ways :-)
Hi dear friend @josevas217
I feel like you wrote the story of my life in this post, I was really lucky last year making a couple of investments and then it was just losses, you have to be careful in the blockchain world, at least I didn't enter the anchor protocol because I had already lost too much
god bless you
Indeed, interest rates have already risen.
And it looks like it's going to get worse
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Hello @josevas217!
Many people tend to hop into whatever investment just because they read something about it or maybe saw someone doing it while they are just copying them, well that's straight loss even if they win money from it because it's most probably pure luck.
I was one of those people who thought it could work that way by just copy trading of some people from signaling channels but for sure I ended up losing twice, first money and second thing is the chance to learn from my mistakes, that's why I planned to change and I actually did.
Thanks for sharing!
Signals can work, but it depends on the strategy used by the analyst. And that is a big problem.
It can make one lose a lot, the best thing to do is to do your own analysis.
Most people lose a lot investing, because they take investing like gambling. With very little or not education about a project they invest in it, because of some noise about it. This is a wrong way to invest. Investigation and education should always come first before investing your money. Nice publication.
Taking on investments as if they were a kind of gamble is almost doomed to lose money.