Well, the rich man takes calculated risks while the poor and average man is constantly looking for an Hail Mary in every so called opportunity and as such do not do the necessary diligence before they start throwing their money aroundâŠ
Thatâs why you see that the ultimate victims of most Ponzi schemes are poor persons and average persons⊠Why? Because most of these persons lack basic financial educationâŠ
1. Invest in only what you understand - Donât invest based on someoneâs recommendation alone, ensure you do your own research to know if the investment will be a good one (your research gives you the conviction you needed)⊠if you cannot do your own research then donât invest⊠go and buy rice and beans and enjoy your moneyâŠ
2. Every investment comes with a certain level of risk - Stop looking for risk free investment because any platform that promises no risk, the ultimate risk is the crashing of that platformâŠ. So itâs better to know the risk associated with your investment and learn how to properly manage the risk
3. Your investment should not cause you to be overly emotional - Donât invest more than you can afford to loseâŠ. Donât put your life savings in investmentâŠâŠ Donât invest your emergency fundsâŠ. I totally understand that the greater the risk, the greater the reward but you cannot be profitable if your emotions are tied to your investment especially in the crypto space with high price volatilityâŠ. Know this and know peace in your investment journeyâŠ
4. Diversify your investment - Never put all your investment capital in one asset (buy multiple crypto coins or tokens)âŠ. No matter how much you believe in a crypto project/coin, donât tie all your money down on one coin⊠spread your riskâŠ. Your father is not the owner of the crypto space so you should not have 100% trust in any project therefore you must spread your risk to protect your selfâŠ.
5. Donât be greedy - GREED has sent many people from the city back to their fathers house in the village⊠Believe me when I say this is 1 emotion that is not easy to overcome but you need to watch it by properly managing your expectations⊠I understand that you want to be optimistic but when investing you need to be realistic and know that the investment can go southâŠ. With this consciousness you can better manage your expectations and watch your greed.
These are but a fewâŠ.. but there is this saying that A WORD IS ENOUGH FOR THE WISE and I have spoken many words todayâŠ.
If you follow some of the tips shared in this post it becomes easy to avoid fraudulent investment schemes and crypto Ponzi schemesâŠ
If you know you want your journey into the crypto space to be free of the fear of scam and excessive/immeasurable losses, then do not hesitate to follow, share and like my comment.