Experiences are gained through trial and error, we do not always get what we want, but the gain will exist as long as we have learned from the mistakes we made.
When we want to invest in a project or venture for the first time (or even more than once) many times we are mowed down by expectations and end up making bad decisions. There are always key points to take into account in order for us to be able to make decisions with a cool head and not get carried away by emotions.
Study the market
*How many people need the product? Do they have the money to buy it? Is there competition in the market?
These are very important questions to ask and take into account because they will guide us in the right direction.
It is somewhat ironic because a few weeks ago I made an investment with some electronic cigarettes at a very cheap price. Although there was a lot of competition in the market it seemed like a good idea due to the cheap price at which it was going to be sold, however, everything went wrong and I lost the investment. The quality of the electronic cigarettes was very bad and not worth the purchase.
But these mistakes make you understand and perfect your decisions in the market.
Who is behind the product
Cryptocurrencies and startups are very similar in this, the person behind the product speaks a lot about the trust it generates, and therefore conditions you to higher probabilities of success.
It is a win-win business, and although it takes work and time to get this information, it is worth it.
Risk management
You should never mix personal finances with investments; they are two distinct sources and should always be kept separate. Controlling the money, we have to invest is as important as the investment itself. We cannot invest all our capital without knowing the risks involved, just as we cannot trust a project blindly.
At the end everything is up to you, but following these three advices does help a lot when we start investing.
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