Invest with due diligence and proceed with caution

[Dragonfund]

Invest with due diligence and proceed with caution.
This topic is mostly discussed on Alternative discussion section but I think newbies and noobs need this as well.

Invest in what you can afford to lose they say, but the real question is, are you willing to let go of that money?

All channels and Crypto media attention has been drawn to Decentralised Finance and many alts are performing extremely good. While this cause for celebration of bull run and new price discoveries, one should be careful, when BTCitcoin makes massive correction without warning, most of this alts will make you regret investing in the cryptocurrency industry. I can still recall the huge market sell-off that happened during the early days covid19 Pandemic.

There is immense profit in this industry but it's not as easy as you think if you are absolutely new, this run is similar to 2017 bull run. Your loss is another investor profit, do a proper research and invest with caution. Sell while you can and move on, greed isn't good for your portfolio.
As you can see below, the greed is increasing day by day which means market and equity are overbought as people are willing to pay more just to get into the system and make some profit.

 

 

SOURCE: Fear and Greed Index

Some of the reasons why I think this is similar to 2017 bull run are:

• New projects are all focused on Defi, same garbage as nothing new from the new trend of rebating and lending.
• Token sales are mostly sold out in hours, everyone wants a quick profit which is scary.
• Old projects Road map are now focus on Decentralized Finance.
• New projects with new social handles that are likely to be scammers.
• Some dead failed ICO projects are rebranding to Defi.

New and recent projects that are coming to coin market cap are all focus on Finance ever since yearn finance attained a new all-time high of $30k, other projects have been popping out with finance on market cap. I listed some of the coins. These are the images I screenshot of the projects that are focused on Defi, this is not a cause for FUD but most of this project will not last with their fundamentals.

 

 

SOURCE: Coin Market Cap

Any project that has suffix as FINANCE are easily pump, the hype about Defi is real. No one will spoon feed you, they can only guide you but experience the best teacher, don't let yours end in regret.

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[Smartvirus]

Invest in what you can afford to to loose they say, but the real question is, are you willing to let go of that money?

I felt amused when I saw this. It's a good thing for you to have bring it up. This is the point where most users starts loosing. One thing some users need to know is risk taking and risk management because, there is a difference.
You have to understand the too to effectively know when your progressing in a trade, when you need to change strategy or when to just pull out and research for more strategies that flows with the trends at that period.
It's really important to note that, these trades also works on periods. Don't expect same strategies to produce same results in the same periods.
Most users wants to recover at all cost so, you take crazy steps, loose in the process, repeat with hope for a change and continue in the process. That's an issue! That's the point where trades gets really difficult. It's actually telling you, that the period has changed. That you don't recover at that moment doesn't mean it's all lost.
Relax, research and strategize and you just might get a hang of what you where missing.

[mu_enrico]

Invest in what you can afford to to loose they say, but the real question is, are you willing to let go of that money?

Investing is not something you do with those speculation coins. The more appropriate word would be gambling.
Anyway, this moment is not similar to 2017 IMO since the momentum is bad to pump things (pandemic, recession), and new users aren't here yet.

[Alucard1]

Invest in what you can afford to loose they say, but the real question is, are you willing to let go of that money?

Practically speaking, no one wants to lose their money but the eagerness to earn and to have more profit will lead them to take the risk if you are familiar with this line.

"Don't be too timid and squeamish about your actions. All life is an experiment. The more experiments you make the better"
-by: Ralph Waldo Emerson

You won't see the success if you will not explore yourself to other things, try to make yourself full of experience which includes taking a risk to acquire things you want.

[Dragonfund]

Anyway, this moment is not similar to 2017 IMO since the momentum is bad to pump things (pandemic, recession), and new users aren't here yet.

Have you check bubbles chart?
Many alts surge with %700 %500 with defi hype and you said the momentum wasn't there, i disagree.
I opened this thread 2 days 6and and warned about the greed with overbought market, just yesterday Bithumb Korea exchange was raid and every where plunge. I was going through some group chat, many were regretting their actions for not taking profits.


Source Cryptobubbles

[SquirrelJulietGarden]

It is the scale to measure fear and greed of market participants. Each person has different personal story and situation so that each person has different levels of fear or greed. Lower or higher than the general fear or greed level from the site you told us.

If you are borrowing money to invest, and the deadline of the borrow deal is coming. If the market turns bad, you will feel very fear, much more than other investors who invest with their own pocket money.

If you have some wins from trades, investments, your greed can be higher than normal levels of other market participants.

I read a classic statement that whenever you feel most confident, it is most likely you will make mistakes.

10 wins, 1 loss and the only 1 loss can take all your profit and capital away.

[BIT-BENDER]

Alternative discussion are good at discussing and re-discussing a thread/topic -even if same thing is just directly over theirs-. investment -what it is/meaning, how to go about it/how it does work- has multiple/multitude of discussion -SEARCH-

[jossiel]

Any project that has suffix as FINANCE are easily pump, the hype about Defi is real. No one will spoon feed you, they can only guide you but experience the best teacher, don't let yours end in regret.

For real!

Just check how many of those finance / Defi projects are in total dump now. Those news about from thousands of dollars to almost no value at all within a couple of minutes. They're all in for the dump while the investors who ride this trend can lose their money.

Get an idea with the top losers which mostly are defi projects: https://www.coingecko.com/en/coins/trending

[mu_enrico]

Have you check bubbles chart?
Many alts surge with %700 %500 with defi hype and you said the momentum wasn't there, i disagree.

I think common sense is still more accurate than %-change by manipulation. When you see the recession is imminent (or already here). How is it make sense to pump the price? Who's going to buy it?

It's a bubble, yes, but only for the existing crypto enthusiast.

[hugeblack]

You mentioned good points, but you forgot the first rule in investing, which is not to invest after you know that the wave has gone up. Many people think with their emotions when the price rises, they think that the green color is an indication that the price will continue to rise, and then the price may have reached the summit of the wave or it may be close to collapse.

Therefore, if you want to invest in Defi scam wave projects, I suggest that you risk some projects that have red color instead of the green one.

[-CryptoViking-]

You mentioned good points, but you forgot the first rule in investing, which is not to invest after you know that the wave has gone up. Many people think with their emotions when the price rises, they think that the green color is an indication that the price will continue to rise, and then the price may have reached the summit of the wave or it may be close to collapse.

Therefore, if you want to invest in Defi scam wave projects, I suggest that you risk some projects that have red color instead of the green one.

Not just red color , that can also be a death trap like YAM was. You should do proper research if you are going for long term, which I wouldn't with 99% of the new Defi projects.

If we are talking about trying to skim some of the top with short term investing then you can search for Defi projects that have solid fundamentals, that bring reasonable service to the sector and have low mcap with room to grow. That way you can find some gems that you can use to get some short term profits and leave fast.

Ofc risk is high even if you do all this, but I'd rather throw in 50-100 bucks here and there for a chance to earn some profits by investing in some potentially lucrative project then miss it.

He who dares, wins.

[proscratcher]

There's a lot of new coins coming out right now, promising to make you rich in no time. If it's too good to be true, then get away from it. Stay with the coins that established already it is much safer than those new coins. Just saying.

[Yaunfitda]

I just check the index, it's now 41% FEAR.

And if there is something that we have learned in 2017 boom and bust,  Do not be irrational, look at the charts. Don't FOMO, but it seems that no one really doing their due diligence specially new comers in crypto space. They just throw their money specially in this Defi hype, and sad to say, the cycle will continue, specially in 2021 wherein it is forecasted that it will be a bull run, so let's see.

[Lordhermes]

look at the charts. Don't FOMO, but it seems that no one really doing their due diligence.

Looking at the charts requires training, requires money for the training as well, that's why a traders should have good tools for trading or just a coin holder. A holder does not study the charts, career traders does that, and need a constant training by experts in the game, so this scenario is a simple perspective to know your stands of either you chose to be career trader or short term/coin holder.
DeFi hype will soon get to an end as they already losing high negative percentages on the value of DeFi coins.

[NavI_027]

It's not an easy job to do their own due diligence, In fact, many people don't even know how to do their own due diligence, They just follow the crowd.

Well, I guess that's what investors (particularly the beginners) tend to do. They got the "Go with the flow" mindset because they feel safe on doing so. You know, thinking that the more investors of that project, the more legit it looks like. However, it is all wrong. Each one of us got their own strength and preferences so do not attempt to be like someone else. Maybe Person A is good with pumping and dumping but you are not because you are too emotional or more comfortable with slower pace. See? So guys, think twice or multiple times before jnvesting in these Defi projects especially that they have rapid growth and decline. Keep safe guys .