Not Buying What You Like

Hey JessInvestors

When we purchase goods or services we're always looking at the perceived value we can get out of it, does ti solve a problem, does it taste good, make me feel good, do what it promises, is it affordable, is it durable and often the idea of value for money comes to mind. These decisions van be evaluated over a long period or instantly in the store or while shopping online.

It sounds good; we like it, so we buy what we like. Many retail investors also apply this logic to things they invest in and with cryptocurrency, we can see that sentiment more evidently. People get emotionally tied to projects and their narratives and are always looking at the fundamentals in a positive light. Yes, this can make you money, but for the most part, it doesn't always make you money. If it did, everyone with a positive feeling on a stock or crypto would be rich, but it's not the case.

Image path - softwareengineeringdaily.com

My XRP example

I don't like XRP at all, but when I first got into crypto it was one of the cheapest alts around, and I got in on it early around $0.10 and bought a pretty large stake. It was one of the best trades I'd ever made and still is, so why did I buy it if I didn't like the project? Well, I read up about it and got into discussions with their community and also people looking to get in.

At the time the bias to hold a whole of something was quiet high as BTC and ETH started to become unattainable, and people felt because this was a high market cap coin with a lot of buzz getting a lot of it would make them rich.

While I didn't like the coin or the project, I kept hold of my stake, and once it hit three bucks, I was all too happy to dump it on the new bag holders wanting to get in. I put my emotions aside, and because it was able to make a pretty profit.

Going the other way

Is how you make money in this game, you have to buy when no one wants it and sell it when everyone wants it so to win in this game you have to play in some pretty shitty areas. What I'm saying here is try to be aware of your biases, it's not bad to invest in stuff you like but make sure because you like it doesn't cloud your judgement.

Just because you like it doesn't mean you can't make money hedging on the competitor, it doesn't make you a bad person to say hold both ETH and ETH classic or Bitcoin ABC and Bitcoin SV, these are shit examples, but you know what I mean. Instead of hoping you picked the winning horse, why not spread out our risk on many?

This way, you don't have to be right on one call, but you can be partially correct on many and still wake away with an upside.

Have your say

What do you good people of steem think? Do you only invest in projects you like?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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