How to be a Good Investor?

Investing into something that makes you feel good is not making you a good investor. If you think about investing as fun and entertaining, then maybe you are not gaining real profit.

Being a Good Investor is being knowledgeable about your investments. It is by being sensible about the investment's potentiality and by being well educated on your investment decisions. Investors who gather and study information will more likely to have sustainable good investments in a long period of time.

Cryptocurrency will not make you a billionaire in a day or at least rarely to some, but with sufficient knowledge and well educated investment decisions, you will more likely become one of those many millionaires.

There are so much information that are readily available around but some of us tend not to care about them. We can actually use these information in determining the value of a cryptocurrency if it is a potential good investment opportunity or not.

The following are the information that you need to gather and analyze before investing into a cryptocurrency. This is sometimes called fundamental research.

• Firstly, we need to know the problem that it is addressing and also how & why it is important to solve such problem.
• Next is their proposed solution to the problem? Is the solution new or if not how is it better than other solutions. Is there a solid and clear explanation of the solution? Is the solution doable and usable?
• How large is its market to aid significant growth. Who will be its target customers? How will they convince consumers to use the product?
• What are their previous experiences and qualifications that will back up the current project? How strong and eager is their team in implementing their goals? Is there anything missing in their team?
• What is their business plan? Why this opportunity has not been taken already? How much funds do they need to raise? When do they need the capital? What is the significance of having the funds and where will it go? How fast will they be able to complete the fund raising?
• Are there any competitors around? How are they different from them? What are their plans to take over the competition?
• Were they able to address the Return of Investment expectations of investors? Do they offer befitting incentives to potential investors?
• Does the management provide transparency to their customers? Does anyone have ever seen or tried their product? How much do you know about the product that they are offering? Is their smart contracts or code readily available for viewing? Do they have a way for customers to contact them, most especially chat? How responsive are they?
• Will it be able to reach critical mass? Critical mass means as more people use their product, the more useful their product becomes, and so they will eventually become a hard competitor.

Usually, most of these can be found in a coin’s whitepaper. It is important to know that a whitepaper should be one part in your criteria when choosing a coin. Most people are simply turned off when they see a 30-100 page report. Gathering or even just reading all these information may be very tedious and boring but in the end, not being lazy pays.