Avoid the 'Mid-Cap Trap'
Typically, it is simpler to invest in established leaders or find brand new low-market-cap projects. Mid-cap projects, if they lack a clear positioning, carry greater risks because new competitors can easily surpass them.
Suppose you have the following options:
Project A, market cap of $1 billion, well-known and consistently launching new features
Project B, market cap of $1 million, innovative idea but still unknown
Project C, market cap of $50 million, no innovation and always overshadowed by other projects
Beginners might think that C is 'safer than B but cheaper than A.' However, if C stagnates, lacking growth or innovation, it is less likely to yield significant returns compared to finding a new, promising B or sticking with a reliable A.
The key point is, if you choose mid-cap projects, ensure they have a plan to stand out. Otherwise, they may just waste your time and capital—in the end, it’s all about opportunity cost.
