Episode 18 – Crossroad, moon or rekt?
“In our last episode, we talked about some of the monstrous scams that have been perpetrated in the cryptosphere over the years, and how you can spot some of the warning signs that might just stop you ending up on the TV talking about how you lost your life savings.
And it’s all very well knowing how NOT to do anything, but what happens when you find something that’s properly LEGIT? Or think you have? How and what do you research, and how do you buy in?
Well, stick around, and we’ll give you some incredibly tasty little morsels of advice. Gobble them down and you can use your newfound wealth of knowledge to generate some serious wealth of pocket. And a bit of financial freedom into the bargain.
Welcome to School of Block.
The world of crypto offers great rewards beyond just any potential capital appreciation. Fundamentally blockchain, digital currency, dapps, NFTs and DeFi are all part of an integrated system offering YOU financial autonomy, free from the constraints, bureaucracy and judgement of the legacy banking offering.
But GREAT FREEDOM also requires GREAT RESPONSIBILITY. There is no number to call if you lose your private keys, get phished by scammers or simply jump on the hypewagon of the latest MEMECOIN only to find its value plummet.
Choosing LEGITIMATE PROJECTS is a COLLECTIVE MISSION, borne by all of us out there, to make this space thrive. The more that the market reflects those projects with fundamental value, the better chance those projects will have to survive and make a difference.
And of course, if you’re on board with them early, then you should do rather well too.
It’s all about the mindset you choose.
Do you want to be in the CASINO, throwing chips at the roulette wheel? If so – there’s plenty of opportunity to do that in crypto. But if that’s your game – don’t try to kid yourself that it’s not. You are gambling.
But what if you’re in here for the LONG HAUL, seeing an incredible opportunity to create generational wealth? Well, that will take a very different mindset. It’ll need PATIENCE, and DISCIPLINE.
Finding the RIGHT PROJECTS comes first, and before you identify the real crackers you need to identify the SCAMS.
First up – how did you first hear about any given project? Was it being shilled on twitter, tiktok or youtube? Bear in mind many accounts are PAID SHILLERS. And unscrupulous projects may even pay seemingly legit celebrities to big up their token. And it’s not unheard of for well known accounts to retweet scams ‘by accident’, simply due to their own lack of research.
So just because someone says it’s good, doesn’t mean it IS good.
There needs to be ANOTHER WAY to investigate a project.
And that means you need to go to the BEGINNING. The WHITEPAPER.
What is it? A document released by a crypto project that gives investors technical information about its CONCEPT, and a ROADMAP for how it plans to grow and succeed.
Now, they can look a bit daunting at first – so here’s some tips on what to look out for:
ROBIN WHITEPAPER TUTORIAL – to mention TOKEN ALLOCATION, TEAM, USE CASES
Now once you’ve identified a project that at concept level has got some chops – what’s next?
Well – this might seem like a dumb question – but IS IT ACTUALLY ALIVE?
Any decent project in active development will have a busy GITHUB. Have a look at www.cryptomiso.com to see where your project ranks. Lots of commits in recent months? Those developers are actually doing something. All good.
How about the network itself? Is it actually ACTIVE? Well, let’s take a look…
ROBIN ETHERSCAN TUTORIAL
Now it’s time to get a little bit more hands on. The vast majority of decent projects will have a TELEGRAM or DISCORD group, and you should be able to find some of the TEAM on there. Go and ask them questions. This really IS possible to do.
If the project is good, they’ll be only too happy to answer. With 10,000 tokens and counting out there, new projects need all the PR they can get.
So let’s say you’ve done all your due diligence, and the research checks out. It’s time to jump in.
How do you do it? Well, the first killer tip is not to get hung up on whatever the price is RIGHT NOW. Equally, don’t try to time the market – the odds of getting that right are practically zero.
Instead, do what the pros call DOLLAR COST AVERAGING.
What’s that? Basically an investment strategy in which you divide up the total amount to be invested across periodic purchases, which you make regardless of whatever the price might be at the designated time. The effect of volatility on price is thus removed, and – if you’re in it for the long haul, then any variations in price at this stage will be negligible when it comes to sell down the line.
And, it avoids making the mistake of one poorly timed lump sum investment.
So – once you’ve identified and dodged the scams – that’s how you buy into the best projects in crypto, and in the process – give yourself the best possible chance of future financial freedom.
As for what you should do with your asset once you’ve bought it? Leave it on the exchange, transfer to a soft or hard wallet – or indeed a combination of both… Well, we’ll be diving into that hot topic next time.
Till then, remember my catch phrase… FOMO’S A NO GO.
You’ve been watching School of Block, presented by Ledger and the Defiant, demystifying decentralisation, one block at a time. Don’t forget to subscribe, drop us a like if that’s what you’re into, and as always – here’s to your financial freedom.”