Should you consider investing in the next crypto that explodes?
It's tempting to try and find that next big cryptocurrency. Even though you could potentially see incredible returns this way, it's also difficult, time-consuming, and extremely risky.
For starters, you'll need to look for cryptocurrencies outside the market leaders. Smaller cryptocurrencies have greater growth potential, but they're also more likely to fold, so there's a bigger chance of losing your entire investment. To balance that out, you might want to put some of your money in cryptocurrency stocks or large-cap coins.
Researching those smaller cryptocurrencies takes time. And, even if a project looks like a sure-fire winner, anything can happen in the crypto market. Your carefully researched investment could go nowhere, while a practically useless cryptocurrency goes to the moon just because it has "Shib" or "Doge" in its name.
Following the cryptocurrency trends or trying to predict them isn't a good investment strategy. There's nothing wrong with giving it a shot, but keep your expectations -- and the amount you invest -- very low.