Why would I read Whitepapers when I can read bullish tweets about the project? Very wrong approach to the crypto industry and you can make the wrong decision and take harmful trades that can ruin your portfolio or lose a lot of money doing that.
I know you might be wondering why I started my post by asking the question above right?, here is why, so many people ignore the importance of reading a coin or tokens whitepaper because they feel is too lengthy, technical, they don't have the time for to read it, or like the question I asked above why should they read whitepaper when they can come to Twitter and read bullish tweets then invest blindly. You should sit down and think about what you are doing, first of all, what made you so sure that the bullish tweets you are reading are legitimate and not just some influencers trying to earn their daily bread by posting something, not caring about you following their tweet to trade blindly, on a second thought why should they think about it, when they tweet and make their own money which is their main aim after all, so it is left to you to do your own research, before placing your trades.
Here is why you should always read a token or coins whitepaper, before investing into any coin, the whitepaper is not to punish as some people keep complaining because they don't want to read, it is to inform you on important things you need to know the about the coin, like what it's the coins main purpose, what is the uses case of the coin, what to expect from the coin, things that will help you understand what you want to buy and if it is worth the risk of buying it.
A crypto whitepaper contains various forms of data like statistics, diagrams, and formulas. The goal of this data is to convince prospective investors to invest in that cryptocurrency. For any crypto start-up, releasing a whitepaper is a way to be considered professional and legitimate. It helps investors understand how the project is different from other projects in the crypto space.
How to read a whitepaper and understand it: I recommend you don't go to the technical part first, start with understanding why the project was created, then understand the project’s real-world utility, how does the project achieve consensus in the network is it proof of stake, proof of work or variations of these two, then how the initial coins were distributed, then after understanding all I have listed above, you can now read the technical part, lastly the project's timeframe. When you are done doing all these I have mentioned and the way I have mentioned you will understand the whitepaper better and early, and that would give you an edge before investing.
When people don't read a coin's whitepaper and they just FOMO (Fear Of Missing Out) into any project most of the time they will regret it, mostly if they fall victim to a shit coin. It's always very important to do proper research and that includes reading the whitepaper of a project before you invest your money. Crypto is a wild place and you should always be prepared by doing your research (DYOR).
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