This is how most people invest in Equity or Crypto
They look at the price going up – Wait
Then they look at their friends making money – They Wait
Then they look at their neighbours making money – They wait
Then they look at some on Instagram, Tiktok touting it – The FOMO is too much now. They invest and then they make money…
They put in more and then a crash happens…They lose everything. For some this cycle repeats again.
First, Price going up is not the reason why you should invest in any asset class though it is often the most important reason.
The Right Way
Ask yourself – Why do I want to invest in this?
How does it fit into my overall portfolio?
Learn about it first, understand the risks /opportunities and the role it can play in your life.
There are many issues in Crypto such as security, custody, strategies, portfolio allocation, which ones to buy, the best ways to buy, tax planning, estate planning and hundreds of other things. Most importantly, what are the costly mistakes and how to avoid them.
It is a specialized area, and you need real skills.
Thus, it is always best to seek the counsel of a qualified professional.
Instead of seeking guidance, how do some people do it? Open a trading account and start. This is a mistake prone and rudimentary way of doing it.
Let me ask you a question.
If you had a flight manual and the plane runs on autopilot, would you sit in it because it is free or cheap. I do not think so. The reason you will not is that you need someone to take off and land. Even if take-off and landing can be done automatically in the future, you will still need a pilot in turbulent weather.
Yet many people sit in such flights all the time opening trading accounts, losing money and then blaming the asset class or the market or someone else.
It is time now to learn first and become wise about the fundamentals and nuances of the most powerful technology and invention of our lifetime.