When it comes to investing in web3, there are a lot of things to take into account – especially if you’re new to the game. With so many new projects and platforms emerging every day, it can be difficult to determine which ones are worth your investment. I want to share some tips I think are very important for responsible investing in web3.
Tip #01: Do your research
When it comes to investing in web assets, it’s important to do your research first. This means taking the time to learn about the project – what it is, what it aims to achieve, and who is behind it. You should also take a look at the team’s track record and their previous work experience.
This information can help you decide whether or not the project is worth investing your time and money into! Make sure that they’re reputable before committing anything.
Tip #02: Be realistic about what’s possible with this investment opportunity
When it comes to investing in web assets, you should be realistic about what’s possible with this investment opportunity. Don’t jump head first and throw all your money into something without knowing what it’s capable of. Instead, take time to learn as much as possible about this project before making any major financial decisions.
It would also be wise not to invest in anything that doesn’t have a good chance at success because then there is no point investing your hard-earned money in it.
Tip #03: Again – Don’t invest all your savings!
It’s important to only invest what you can afford to lose. Its not worth putting everything on the line just because of some speculation or hype around an ICO that may turn out like any other coins (which means nothing), or an over hyped NFT that goes to zero. Although there are incredible opportunities out there, keep in mind that the large majority of NFTs (non-fungible tokens) end up at zero.
So make sure you’re willing to accept any loss associated with this investment opportunity. This means knowing what kind of risks are involved ahead of time so there won’t be surprises later down the road.
Tip #04: Make sure the project is reputable before investing anything into it
It’s important to only invest in projects you want to be affiliated with and that you want to support. This goes back to doing a good job with tip #1. If it turns out the leader of the project has poor ethics, you could be affiliated with that. Don’t get caught up in hype and speculation when it comes time for making decisions on what projects to invest your money into. I personally like to invest in women led initiatives as well as projects that have a large charitable initiative behind it, so even if it doesn’t work out, I know i’ve supported something I’m proud of. You can find this out by looking at the founders behind the projects and what the plans are long term (for NFTs this is called the roadmap and utility’s).
Tip #05: For NFTS specifically – make sure you actually LIKE what you’re buying.
This might sound silly, but when it comes to NFTs (non-fungible tokens) or even other digital assets – make sure that you actually like the art/music/etc before spending money on it! Then if you do get stuck with it you won’t mind seeing it everyday in your digital wallet.
Tip #06: Pay attention to trends and make sure they’re trustworthy sources of information
It’s important to be aware of trends in the crypto world.
If there is a trend that you like, make sure it’s coming from a reputable source before investing any money into it. If not, then don’t get caught up in hype and speculation when making financial decisions which could end up costing you more than what was originally invested. Everyone wants to score big with the next Bored Ape, so when the excitement starts pumping you’ll be hearing all kinds of recommendations. Take the emotions out of it, like with anything, don’t take advice from someone who isn’t where you want to be!
Tip #07: Simply – remember to have fun!
Everything better is when its enjoyable, so make sure you’re doing it because you enjoy it and not just because you want to get rich quick. Crypto and blockchain technology in general is still in its infancy, so there’s a lot of opportunity for growth in the future. Be patient, do your research and have fun with it!
So these are some tips to investing responsibly in web three. I hope you found this helpful and that it will give you a good foundation to start from when looking into investment opportunities.
Happy Investing, and as we say in the web3 space, GM!