The strongest, most secure approach for crypto investing.

in #investing6 years ago (edited)

The variables with cryptocurrencies are constantly changing. Aspects such as trade volume, the amount of investors, total supply of coins, token functionality, and overall market conditions all affect the future path of any token or coin. Due to this, I must state that this paper is for information purposes only and is not a statement of future intent. Cryptocurrency trading/ investing involves substantial risk of loss and is not suitable for every investor. The valuation of cryptocurrencies may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices.

Through paraphrasing the words of revered value investor Benjamin Graham; the only thing most people can be confident of while or if ever forecasting future crypto and token returns is that you will probably turn out to be wrong. The only indisputable truth that the past teaches us is that the future will always surprise us - always. And the corollary to that law of financial history is that the markets will most brutally surprise the very people who are the most certain that their views about the future are right. Staying humble about your forecasting powers, as Graham did, will keep you from risking too much on a view of the future that may well turn out to be wrong.

So, by all means, despite the current plethora of speculators and incredulous statements of millions made on one ICO investment - we advise that you should lower your expectations - but take care not to depress your spirit. For the wise, intelligent investor, hope always springs eternal, because it should. In the financial and cryptocurrency markets, the worse the future looks, the better it usually turns out to be. A cynic once told G.K. Chesterton, the British novelist and essayist, “Blessed is he who expects nothing, for he shall not be disappointed.” Much rather, “blessed is he who expects nothing, for he shall enjoy everything.” Alongside this, we must also underscore that psychologists led by Baruch Fischhoff of Carnegie Mellon University have documented a disturbing fact; becoming more familiar with a subject does not significantly reduce people’s tendency to exaggerate how much they actually know about it. That’s why “investing in what you know” can be so dangerous; the more you know going in, the less likely you are to probe for weaknesses. This pernicious form of overconfidence is called “home bias”, or the habit of sticking to what is already familiar. In short, familiarity breeds complacency. When we are too close to someone or something, we take our beliefs for granted, instead of questioning them as we do when we confront something more remote. The more familiar a token or coin is, the more likely this will turn investors into lazy one’s who think there’s no more need to do any homework.

As the crypto markets heave and crash their way up and down day after day, the wise investor can take control of the chaos. Your very refusal to be active, your renunciation of any pretended ability to predict the future can become your most powerful weapons. By putting every investment decision on autopilot, you drop any self-delusion that you know where coins are headed, and you take away the market’s power to upset you no matter how bizarrely it bounces.

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