Your First Crypto Investment, Was It By Influence Or Research?

almost 2 years ago

Haven gain some cryptocurrency knowledge over the years we often advise newer enthusiasts to do their research before investing in cryptocurrency.

Looking back at how we got on to crypto, did we put in the research or just jumped in based on the influence?

My First Cryptocurrency Investment

It was 2014, when I found out about Bitcoin, it was by chance, as I attended a Karatbars seminar (buying gold bars in small increments).

We often refer to Bitcoin as digital gold so the term was used back then I was presented with a trailer of Bitcoin: The End of Money As We Know It, and I liked the idea there was an immediate connection with me and Bitcoin and that was it.

I ended up investing in it without further research, it was more of being influenced by the mentors. So as far as research is concerned I didn't do that.

My research for Bitcoin followed after I got rekt. Fast forward to the present day and based on the shilling of tokens on social media, the same approach of investing in cryptocurrency without conducting thorough research is most dominant.

Time Spent On Research

From the compiled data by Bybit below we can see social media's influence on crypto investment as well as what friends share with social media the more dominance when comparing both.

BybitxTolunaJointResearchReport-5e44e7cf355184e247d67e63009d20c5.pdf - Brave 1_20_2023 8_09_15 AM.png
Source

We can take a positive from less than 2 hours and 3 to 8 hours of research and hope the numbers get better from there on. Perhaps conducting the same research in another 2 to 3 years might yield a better result in research being done before crypto investments.

BybitxTolunaJointResearchReport-5e44e7cf355184e247d67e63009d20c5.pdf - Brave 1_20_2023 8_39_33 AM.png

Another interesting data from the same source is the long-term approach when investing in cryptocurrency, which some of us learned the hard way, by getting into crypto with the hope of making quick money. Unfortunately, that approach often leads to getting rekt.
The result of the above data can be improved if we all approach crypto projects with a long-term perspective, and with such in mind also comes the desire to do thorough research.

Bearing in mind research doesn't eliminate risks but puts investors at a better chance of investing in sustainable projects rather than investing in hyped projects from social media that lead to loss of funds.

Like I told a friend keen on crypto the other day, always make sure you are in control of any crypto project you get involved in, which tells you to prioritize decentralization above centralized entities that have the power to shut you out of your account. Additionally, it pays to seek long-term projects than short-term gains that don't exist in the first place.

Not many of us started our crypto journey with the right approach and mindset but we learn along the way and that is what matters, it becomes a foolish act when we keep repeating the same mistake.

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