Things To Avoid When Investing
A few weeks back, a friend of mine shared his experience with me. Someone brought an investment idea to him and the idea looked too good. He had already calculated his proposed gains from the investment, so he grabbed the idea. A few days after sinking in his money into the investment, the platform crashed and his hard-earned money went down the drain. From his experience, I drew out some lessons and I will like to share with you, maybe it will help someone.
First of all, you should not take someone's investment ideas on face value. Research yourself. A few days of research might save you from years of regrets. As part of your research, if it is an offline project that you want to invest in, pay visit to the place yourself, check out if it is worth the investment. A popular quote in this part of Nigeria says that:
If someone promises to give you a dress, you have to check the one that he is wearing to have an idea of the kind of dress he will give you.
For a project promising you millions on returns of investment, you have to check if they are worth it in the first place or they just need your money. If it is an online investment, you have to research too. Visit their website, read whitepapers, etc. If your instincts disagree with any part of it, then you need to take a break because most times, our instincts are true.
Note this: If it is too good to be true, then there are chances that it may not be true. Imagine an investment platform promising to give you 100% return on investment after two months, they only want to prey on your greed. I mean, how easy will it be to have such an amount of ROI in such small timeframe?
You also need to separate your emotions from investment. The person bringing the idea may be your friend or even a family member but this should not becloud your sense of reasoning. They may want to work on your emotions to make you do what you normally would not have done, so you should learn when to separate your emotions.
If you are unsure of the investment, you can confer with a third-party that is knowledgeable in that aspect to help you with their expertise. Do not hastily rush into investing without adequate information. Take your time. The truth is, any investment opportunity that will be pressuring you to act fast may have some have shady deals.
Remember, one wrong investment can crash what you have worked so long for, so try as much as you can to research well before letting in your money.
Thanks for reading
This is a big issue in crypto. People often do not understand the projects they put their investment in. It is not a simple task for most people to do research. For example, the only solid way to check a De-FI protocol is to read full code review results and such information is not shared anywhere for free.
Exactly, many people become victims of these fraudulent projects because of little or no research. Research is never easy but at the end, it will be worth it. Thanks buddy
@tipu curate
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Thanks buddy
Hello @samminator
Investments are lands that to enter you have to study everything very well, and even then there are risks. I have my experiences in this regard. Many times the closest people are the ones that end up making you lose money.
This is absolutely true. They will find a way to appeal to your emotions and you may take the decision just to please them. This is why we need to separate emotions from investment. Thanks buddy
Hello friend @samminator, interesting article, very good reading.
Tips to which we must pay attention because they can avoid headaches.
take care of yourself!
Thanks a lot buddy for the nice comment and for taking out time to read the article. I'm honoured
Hello friend, excellent advice, certainly we must take care of our capital, today there are many people who want to take advantage of our innocence or greed, on the internet there are many scammers and the saddest thing is that people think they will become rich overnight. Everyone's wish, but unfortunately things are not so easy. Greetings!
Exactly. Any investment that promises a get-rich-quick Return On Investment is probably trying to prey on people's innocence or greed.
Thanks for the comment friend
One thing I have noticed is that project or investment plan that profit high yeild return is always risky and always turn to crash soon
That's one red flag to look out for. If the returns are way off the limit, then it cannot be sustained and it may crash. Thanks buddy
Investment is an art it's not cup of everyone teas . We need to be very careful while investing as we can lose all that we have earn.