Why do you invest in something? Some questions you should be able to answer

in cryptocurrency •  7 years ago  (edited)

**FRESH INVESTORS AND 2017 HYPE**

Lately we see a lot of new fresh first time investors in the space since BTC hyped a lot around the www More people get interested. People who never had invested in something are trying to catch the hypetrain to milionaire city. Having experience in investment in the stockmarket as personal and during my study as trainee investment advicing I have a super huge questionmark by this ICO madness. 

*Noise and influence*

When I see some of those youtube channels come by more and more heavily promote some coins with their reasons, I sometimes get tears in my eyes of the stupidity that is promoting coins and encourage others to buy some certain coins. I mean there are a lot of greenscreenphrophets who just bought some coin in the early stage, made huge profits because they took the risk and basically just hoped for the best.... are now thinking they are pro traders, investmentgods, warren buffets of cryptocurrency act weird and promote the coins they have in the portfolio's. some even do courses and stuff but it's all based on foolish crap .....

But there are actually some really nice channels who have great discussions that stay in the middle and see things rationally. Thanks to those..

The thing it is and what I think is important to discuss now, is why are you investing? There is a complete trend that is called decentralizations which for now may look good but on the way to perfection and adoption (if that's the final goal) will show problems in certain areas, is it even possible anyways

**LOOK AT THE STOCKMARKET**

Investing in stocks is based on several factors that are fundamentals of how a company has disadvantage and advantage in the market, and micro economy or performances. You can actually see numbers like revenue, operational costs, credit and debit, expanses, production and costs etc. etc. those financial numbers show if the company is growing, declining, becoming more efficient and how the money gets handled. The executive board is responsible for longterm and strategic decisions and delegation. Their personality, experience, leadership, transparency and trust is what is important. Long term value and growth is the goal and investors search for this for return. there must me potetial in the macro economy aswel and the company has to have a strategy in that, what are they doing, who are the customers, how does it develop. many products or services are long finished and show that there is potential. there are no beta ideas only that makes a company worth investing. 

**ASK YOURSELF THESE QUESTIONS**

So.. what is the reason to buy into a project with only a whitepaper, why you will buy certain coins anyway.. ignoring the blabla and hype completely ask yourself these questions.

  • * Is the product already in use or can you try the service?
  • * What is needed in capital to make something happen better?
  • * Did you do research yourself or are you told in the hype? 
  • * How do you feel the future market will develop, how many competition is there now?
  • * What can kill the solution of the service in the near future?
  • * How good is the communication on news?
  • * What do I know about the team and board? How do they spend and or store the money?
  • * How quickly can they start making revenue and profit?
  • * have i collected enough data of economic developments and sectors to check if in 5 years the service / product will add something society ?
  • * how much money can and am I able to lose on this or get store for a long period of time?


Be carefull and don't fool yourself by chasing the hypetrain without facts. 


To close this blog here is a picture of how the uncertaincy in investments makes people crazy and scared which is the thriving power of a market going up and down. 


Peace






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That's some great advice, I remember when I was running miners around 2013 the whole room smelled like Baked Air, there is nothing there just Baked Air
But over the years more and more investors want a piece of the Baked Air pie