If you are on the market for a high power investment and you do not care much to take a big risk, it is natural to turn to unorthodox investments. Many investors flirt with the idea of buying a piece of meme like Mastiff,, (DOGE 0.46%)) Or maybe a new problem like Trump’s official play, which is on the Solara (GROUND 1.45%)) Blockchain with the ticker $ Trump.
Stop with enthusiasm towards the heated stove in red now, before burning yourself. There are much less nihilist means to invest your money which offer lower risks and, in all probability, higher yields. Here is why you don’t need to take such absurd chances of exposure to a certain growth.
Don’t even think about playing with fire like that
It is understandable why investors revolve towards Corners For a return. The stories of people who strike him rich with a very small initial investment are intoxicating. But these are just that: stories.
Consider this graphic and study where the peaks are:
Dogecoin price data by Ycharts.
The period when you are most likely to hear about Dogecoin, or any other piece of memes, is during the strongest ascent of its price. If you buy then, you will probably feel the clear descent that always occurs after all the remaining marginal buyers on the market have hired their capital. This means that you will then be seated on steep losses for at least a few years before having another chance of selling.
But for most investors, see 80% losses is precisely the impetus to sell their tokens. Then, most of the time, they simply buy back when the price of the room starts again again parabolic – it’s too tempting and the Fear of missing takes over.
For a room that immediately attracts enormous attention, such as the same Trump piece, the speed of magnitude and the accident can then Turn your head.
The most important factor that these coins have in common is that there is not really credible Investment thesis For why it is a good idea to keep your tokens in the long term. The price of Dogecoin will increase a lot at some point in the future, and the same goes for the Trump medal. But there is no mechanism that leads to an underlying value to ensure that the price increase will actually occur. This is what makes them bad investments – or, by a more realistic term, the game.
Fortunately, there is more than a good alternative on the market at the moment, both in the cryptocurrency and outside it. Take Solana for example.
Anyone who wanted to play on the room even Trump had to buy Solana first, because the room is hosted on Solana’s channel. Likewise, there are a large number of real projects on Solana that push investors to buy the medal: they need it to participate in the strike of non -buttons (NFT), using Decentralized finance (DEFI) Applications, Financing of agents of artificial intelligence (AI) or their infrastructure, and more.
Holding the play for the next five years is an intelligent idea because in this period, there will undoubtedly be more projects launched, more new categories of invented projects and, in all likelihood, more users and new users.
Eat your vegetables before considering what to have for dessert
Despite the above, there are almost certainly a lot of investors who have already bought the two coins mentioned and who always keep them in the hope of covering, or who will not want to resist their temptation even when it is Easier and more profitable to just buy Solana.
For these investors, the practice of reducing harm is the appropriate approach.
In other words, if you absolutely have to ignore these tips and get into coins anyway, at least make sure your financial bases are covered first. You should have an emergency fund set up, as well as a diverse portfolio With a mixture of conservative investments and at moderate risks. You should also have other less risk cryptocurrencies like Solana.
It is only once you have attended these other priorities can be said that it is not severe financial self-sabotage to invest in tokens even-and even then, it will always count like A moderate sin, then act accordingly if you want your portfolio to grow instead of shrinking over time.