Don't Invest in Something You Don't Understand
As the markets tick upwards there will be renewed interest in the space, at least while it lasts. For many potential investors, the promise of quick, huge returns are the only thing on their minds and biggest motivation. Yet there is great danger to this, as the unpredictability of the markets can quickly take shape and swing things in the other direction, leaving people with some heavy losses and bitter conclusions.
The first mistake comes from investing in an asset with little understanding of its purpose, mechanics or potential. That is similar to getting married without bothering about your partners personality, or caring about compatibility. There is simply no benefit risking something without having an idea about the possible dangers or potential rewards at hand if it does work out.
I understand that a lot of people will rather take action, and sometimes overthinking through an investment does lead to complacency and inaction. It is thus necessary to recognize this and try to find a balance. The beauty about information is that it is readily available to those who actively seek it. A couple of hours of research might either make or save us a fortune. It seems like a relatively reasonable tradeoff but most people don't do it. People simply do not have the patience.
What is instead easier for most people is to delegate the responsibilities of knowing to others, and people have made a fortune providing solutions to people's ignorance. Even here on crypto, DeFi and AMMs ensure that the investor can commit with as little information as possible. Depending on the size of your investment and expectations, we need to make a decision on whether getting all the information on the crypto space is worth it or not.
Crypto usually involves taking personal responsibility for all of our financial decisions. This is because of its unique nature, and the fact that we are in greater control of our accounts unlike the traditional space. One slip on security can quickly see you losing all your assets with no one to hold responsible. There is need to therefore be better equipped with information as an offensive and defensive strategy.
Maneuvering through the crypto space can be a pretty complex ordeal. There is some pretty technical jargon that flies around here (even though things are better now) and it can take some effort to understand. Even knowing where to begin is another problem potential investors face. As a solution though, there is no better platform I can recommend on finding information about crypto than the Hive chain itself.
Conclusion
There is a great deal of benefit to being actively involved in the Hive space that reflects not just in the good times, but also through challenges. The confidence we get from our proof of value enables us to keep growing and envisioning the future. We have passed the stage of ignorance being bliss.
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