How To Deal With A FUD Crypto Market — Solutions For Investors
In a fearful, uncertain, and doubtful (FUD) crypto market, everything goes down, the color is all red, what can investors do? And how should investors face it, once and forever? Check this post out!
Why GameFi Market Has Shown The Downtrend?
The crypto market has always been a lucrative one for all investors since the people see the monetary values in it, and also GameFi especially. Let’s take GameFi as an example. The peaking time for GameFi is over as the market is getting saturated by so many projects at the same time, intertwined with rug pull projects too. This makes people fall into the FUD trap that can hardly identify a truly good project to invest in.
Moreover, most of the GameFi projects are rushing to IDO to publish their tokens, this action makes the project get pumped for a swift moment and die out real quick. Indeed, after IDO, the project still needs a lot of improvements to live up to the actual values of its tokens or they will totally lose control over it. A decentralized exchange indicates that there is no control mechanism with IDOs. When it comes to fundraising, it’s critical to have some type of control over token price fluctuations or to have KYC regulations, as seen in ICOs, IEOs, and STOs.
How Can Investors Deal With This?
In fact, there would be no best solution to an already happened situation so the investors should choose to hold or trade their tokens depending on the state of the values. Importantly, it could be a lesson for the next choice of project to invest in.
Observe the trend and choose to fall into the FOMO trap or not:
Usually, we think of the FOMO tactic as a bad practice from the marketing team of many projects. However, you can also DYOR about the trend and speculate the true upcoming trend, then you can lean on the trend with the FOMO wave or not. Just really stop to think when you feel like you’re being FOMO, and research thoroughly. What can really be the trend? The art style, the project values, the type of the project, etc.
For instance, many posts/blogs will say you should invest in GameFi as GameFi is a big trend at the moment. Otherwise, thinking of the number of existing projects and the present customer base:
- GameFi market is way too saturated
- Mostly for game players
Next step you should make questions about what can be next after GameFi? SocialFi? MetaFi? Larger users segment? For sure if it’s for the social media users, not the gamers alone, and also it has not got so many projects in the pool.
→ That is the next trend.
Then it is your job to keep researching the SocialFi/MetaFi projects to invest in.
Choose your influencers:
Certainly, the crypto influencers may receive the benefits from the project to promote but you can definitely choose the ones who are transparent with their promotion videos, or the crypto/project analysts to follow. Moreover, crypto influencers usually can predict the trends better, or at least they are the factors that make something a trend or not, so following the right ones might help you significantly!
Check the authenticity of the backup community:
If you are not quite a trend leader, brave investors that will scrutinize the project to invest in the project at the early stage, you can wait until the project has some stance already to check if the community they are building is concrete or not. The more real users join, the more interaction they gain, the more potential that project can become. Still, you can totally consider being a trendsetter, investing early, together with the project hype up the community to grow the project’s values and earn your own opportunities, since most of the projects will serve their users with the “First Come, First Served” policy.
Varify your investment:
Usually, you should not put all of your money into one project/cryptocurrency, that can be a big risk. Instead, you should choose potential targets to diversify your investment to ensure that even if one or two of them fail, the other investing choices still sustain your money. The rule of thumb is never to invest the money you’re not willing to lose. In the worst-case scenario, you can lose all of your investment but those losses cannot influence your financial status tremendously. Just play by the rule, don’t rush to make big earnings when your knowledge, skills, and network are not enough.
DYOR and evaluate the projects your way:
It’s OK to like the initial step/idea of the development of the project but you should always look at the entire picture of the future. What is the roadmap, will that project comes to the stage of IDO even their values at the point may not be developed profoundly, what are their utilities/USPs, will those USPs sustain over time, etc. And seek a group of peers to exchange the opinions as well, then you can reflect on your decision last.
All in all, the market is still young and new but also a profitable one. Henceforth, as an investor, you should not only rely on other analysts or influencers, you should DYOR and try to be more independent yourself. Your money, your choice!
Stay up-to-date with us, UMBΛLΛ MΞTΛVΞRSΞ will furnish you with a full package of blockchain-related knowledge!
