With more people looking into buying crypto than ever before, it is important to recognize that this is not the best investment for everyone. Experts like Robert Testagrossa have been talking about this recently, and discussing the dangers which a FOMO investment could have. The reality is that whilst this could be a great market for many to invest in, we have to bear in mind that it is not for everyone and that some people would do well to sit this one out.
Here are the reasons why this is not a smart investment for everyone.
Investing the Time
Investing in this market is not as simple as just creating a wallet and then buying some coins, that approach will see people lose their money. The reality is that ini order to be successful with crypto you need to really invest the time in reading and learning about what the blockchain is and how this technology works. Once you have done that you need to get to grips with what the markets are impacted by. If you are not prepared to invest this time, it may not be a smart investment for you.
Crypto is one of the most volatile markets in the world and that is exactly why so many people lose their investment. What often happens is that we see huge swings which go up and down, and people don’t know how to deal with it. The result is panic selling when the price is dropping and then FOMO buying when the price falls. This is in fact the opposite of what people should be doing, and buying on the way down and selling on the way up is a far better strategy. This again is why not everyone will do well in this market because those prices are very volatile and you need to have a strong stomach if you are going to hang on for the most profits.
When People Begin to Get Greedy
We would all love to make mega profit of course but given how volatile the market is, some would be better at taking small gains and using them to help them in their life. The question always has to be when you look at your portfolio ‘what would I be like financially if I lose it all?’. If the answer is not very well off, it is always best to sell small bits of profits as they come around. Unfortunately however many of these people will hang on and hang on, getting greedy and trying to make the mega bucks. The end result of this can often be that they lose either their investment or they lose the profits which they had made, which could have really helped them in their lives.
The reality is that this is not an investment for everyone and that is why some should avoid crypto and invest in something which is considered a safer bet.