Crypto market is the place where more than 90% people are not able to make money and that is something you must have listened or read somewhere. The reality is that this statement is true and more than 90% people lose money in this market but what is the reason behind that? We will discuss that so that we don't do the same mistake and so that we can be among the few percent people who make money in the crypto market with time.
Majority of the people who come to this market are the people who want to make quick money in short term and that too without giving their precious time in to researching about the market itself. While making money in this market both in short as well as long term is possible there is something we can not ignore and that is proper research as that is needed for that. If you are here blindly investing in a hope to make profits you will end up losing your money.
For example there are so many meme tokens that are useless i.e they have no real world use case and where most of these projects are scam, people dive in there and try to make money. There you will see quick pump and dump and the reason is quite simple, you are in to scam project and that is what we see with those type of projects. One of my friend lost all money in a token like that on Solana while one of the friends made huge profits.
It is very close to gambling and you know what happens when you do gamble. So what is something you need to do? You need to research on the tokens you are investing in. See their supply in the market and the backbone of the project and for that see who are their backers and what problem they are solving. Study the tokenomics of that project as that is something really important, people these days simply don't want to go with the tokenomics.
Diversify your investment in different narratives which are trending at that time. For example right now we see AI and RWA as top narratives so you can pick coins from there and expect good returns. Always pick some safe coins like Bitcoin and Ethereum. That is how you build your portfolio which is more vulnerable to loses.
Thank you