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Swing Trading

As an aggressive trader should you invest ALL your money into Crypto?

By November 2, 2018 No Comments
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If you don’t care if you lose it? Yes!

The future belongs to the bold and those who can perceive it before it actually happens and who act accordingly.

However, if you don’t care this also means that you’re not investing a small amount which leaves your financial situation impacted if that money is lost.

A lot of fortune 500 companies invest into speculation technology adoption and also disruptive technologies. However they take calculative risk which is different from blind risk.

If you have the money to blindly invest into risky assets like cryptocurrencies then hopefully you have the patience to look into investments more seriously where you can set your benchmark abit more realistically.

If you’re expecting 1000x returns on your investment by investing in an ICO or a cryptocurrency that is in the Top 500 then you must realise your chances are quite slim regardless that it is heavily advertised on social media or that fact that it most probably been presented to you as insider information from a friend who just “Knows” that this crypto or this ICO will shoot up.

If that is your case, and if you DO care about losing money, or if you’re willing to put enough money on the line for you to care for it.. then due some investigating.

So what are some green light which we’re looking for when investing in a volatile asset?

  1. A lot of people bought the founder’s technology and some other group besides their family tells them its great by buying it.
  2. The team members who invented the ICO or Crypto have build and distributed technology several times before (Research is needed)

You’re looking for founders who have build and SOLD technology companies at a significant scale. These are the gentlemen who will be managing the money “you” invest, so making sure they have a good head on their shoulders is the first thing to do.

If the people have no experience like the co-founder of Ethereum “Vitalik Buterin” then make sure just like Vitalik, that he or they have a deep understanding of the market and its indept principles.

So these are the team players that you need to evaluate

  1. CEOs
  2. Community manager
  3. Distributor
  4. Founders
  5. Project Leaders

Now lastly lets take a look at some RED FLAGS that should make you suspicious.

  1. The founders never build anything of any kind of scale
  2. The founders never sold a tech company
  3. The founders never worked for a tech company that sold anything of scale

With these type of folks, the execution risk is dramatically higher if it’s not an outright scam from the get-go.

Also realize that when a company goes viral and is booming, it can also be due to hype which can easily be achieved with proper marketing tactics. Such companies that offer no real solutions operate much like undisguised ponzi-schemes, and when the honeymoon period is over, the operation crumbles like a deck of cards.

Its a very risky game, even if the press headlines seem to be indicating like nothing could go wrong, as traders we must always be aware of all possibilities and not be blinded by self-promoting stock market headlines by the companies who run the operation.

 

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