With the gradual mass adoption of blockchain tech and DeFi, investing in cyrptos does look like an inviting prospect in 2022. If you are also one of those people who are looking to invest in crypto you may feel not certain regarding the crypto safety, and whether it's good or not to put your money in firstly.
Don't Fall Into False Hype
Newbies can sadly become disappointed if they are stuck into the trap of a wrong hype. These hypes play a big role into FOMO, and there are people who are looking into taking advantage of this FOMO by promoting tokens that are not a good investment.
In Pump and dump schemes, hugely rich Whales make the use of Social media in inflating the value of a token just to sell their bunch of tokens when it reaches the highs they desire for, which send the value plummeting down.
Now, that doesn't mean that a token which has a lot of social media support, is also a part of pump and dump scheme. But it's good to do your own research about the project, smart contract and owners behind a token rather than looking to invest in a token based on the status it has on social media.
Educating Yourself
If you have decided to invest then its good to choose those platforms or exchanges which are deemed to be decent with a good track record. Never ever click or invest in projects that are sent to you in Discord DMs from strangers, without knowing about the platform and that the tokens offered are legitimate. It's good to study deeply before you think of sharing your details.
Financial planning, strategy and self control is important while investing in something like NFTs or crypto. Trading crypto does require technical analysis skills among other things. If you are looking into diving deeper into educating yourself on the topics of technical analysis, trading psychology and portfolio management, then you can go for crypto trading.
You may also benefit from Social Trading, but yet again, great care should be taken while going for social trading.
Is Cryptocurrency for You?
When you ignore that FOMO and those extreme social media stunts, you may start realizing and may start to develop an eye for the legitimacy of a project and the utility of a token. Familiarity with the DeFi once is adopted, cryptocurrency could be fun and profitable investment.
Self education and awareness is very important. Taking the challenge and going on the path of educating yourself to become a pro trader could be a dream come true for some, while other people may prefer to try social trading.
And never forget that, invest that much which you can afford to lose.
This content is for educational purpose. Its not a financial advice.