Capital is not Enough for a Successful Crypto Investment

I joined the Hive Blockchain as a full Crypto-ignorant person. In fact, my first ever interfacing with cryptocurrency was my Hive rewards, though I didn't know they were actually cryptocurrencies. Having played some mobile games and send some points and monies I never withdrew, I thought Hive was one of such.

The first time I would withdraw my Hive rewards to recharge my data bundle was really exciting. For the first time, I would earn from an Internet venture. At that point, I decided to get serious with my engagements on Hive. I was serious with building my Hive Power so I can also curate other users posts. At some points I read the experiences of other hive users and how so much they have drawn out of Hive, I felt I could also invest.

The first point of serious investment engagements was Splinterlands and Cent community. I purchased, SPS, GLX and CENT tokens. Those days, each of those tokens were costly. $SPS was around 10 Cents, GLX was 15 Cents and $CENT was $0.008.
I staked the SPS, GLX and CENT tokens to earn more. Ten months after, all three tokens have lost value to one-tenth of what I purchased even with the supposed staking interests on top. Do I have to be discouraged? No. I take responsibility. I didn't know that good investments were beyond capital.

Forgive me. Outside of this crypto space, we are meant to believe that capital is the major factor you need in an investment adventure. I was wooed. I did not do my own research to know that there were right times for investment.

Looking at my experience and what I've gathered from other people's investment testimonies, I share with you that Capital is not Enough for a Successful Crypto Investment. What then are needed for a successful crypto investment journey besides capital?

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Understand the Asset you’re investing in

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Understanding the asset you are investing in calls for a robust research. It is important to read wide. Understand the whitepaper, asset supply, sink and use cases. It is important to read varying opinions about the asset before deciding to invest in it. Timing is also very crucial if one must invest with profit in view.

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Some cryptocurrencies are backed by nothing. The market is only based on speculations. It is therefore very important to understand those aspects of the crypto before deciding to throw in money.

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Watch Out for Asset volatility

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I never knew that anything apart from liquids could be volatile. Some cryptocurrencies are just as volatile as water. They can change in price as faster than flowing water changes it form. Differentiating between an asset that is stable and the one that is volatile would help you invest right.

It is important to also know the factors that can make a supposedly stable token to become volatile.

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Manage your risk

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Everything in life is risky. How we mange risks is what differentiates a successful person from an unsuccessful one. An investor going in for a long term investment may never be bothered about selling, regardless of the price. That risk management format is not needed for a short term investment. It is important to always look out for ways to take profits without greed.

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For a short term investment, it might be important to invest in batches and with varied entry positions.

A part of risk management is to intentionally keep some money in reserve Incase the market tide happen unexpected.

Capital is good but not the ultimate factor that promises a successful investment career in crypto.

Posted Using LeoFinance Alpha