Why Do Some Crypto Investors Ignore The Basics?

When it comes to the term “investors,” I’m often hesitant to use it. Anyone who purchases an asset is, by default, considered an investor. However, anyone who paints a painting is not necessarily an artist. Referring to certain individuals in the crypto space as investors is actually not only inaccurate but also insulting to true investors.

I am generally referring to the group that buys something just because of hype, or because Elon or some other “influential” person has mentioned it. This, unfortunately, is how the majority of crypto investors operate. Essentially, it’s gambling, as there is no research or technical analysis.

The basics of investment ideology are not even addressed, let alone ongoing research, performance monitoring, and extrapolations based on numerous criteria and data. What makes this even more saddening is that some of these “investors” actually happen to get lucky and walk away millionaires. This, however, is perhaps less the case in 2026. The market has changed a lot since the early days.

What I Really Wish To Address Regarding Crypto Investing

I want to point out a few things for investors doing research and trying to get a handle on potential investments. Firstly, assessing the future of a potential investment largely depends on the coin’s current ranking and market cap. I often talk about investing in micro-caps because the potential upside is massive. This strategy, however, involves very strict discipline; otherwise, wreckage is basically guaranteed. It all depends on the return you are trying to secure. I see a lot of crypto enthusiasts getting excited about a 30% or 50% gain.

This is stock market territory unless, of course, you are intraday trading or scalping. When I consider a crypto investment, not a trade, I am generally looking at many years. Consequently, I am also looking at 100X and upwards. As I mentioned in my recent post on Hive, what you do in a bear market is a direct reflection of what you experience in a bull market. What this comes down to is that you ultimately require years to experience significant gains. This is how 100X+ returns are achieved.

Does Time In The Market Matter For Altcoins?

As we enter 2022, I will be in my 8th year in crypto. I have seen ETH at around $12 and BTC at a few hundred dollars, which means I have seen how time in the market rewards. Generally, fund managers will push the time-in-the-market narrative because it rewards them by default. This, however, is also a true viewpoint in the crypto space.

I can almost hear the response, “That was back then, when the market was in its infancy.” True, but that does not mean that it does not still happen. I bought the following coins in the final months of 2019 or in 2020. Listed below are their current values, the prices at which I bought them, and the ATHs reached in April or May of this year.

So this is the market’s recent performance, and what made these choices very good risk/reward investments was their low market caps. If a project is valued at only millions or hundreds of millions, there is tremendous upside if it achieves even moderate success. It does not end there.

What About General Market Growth?

So, looking at where a project may arrive is the isolated potential growth of any particular project. This does not account for the overall appreciation in the crypto market cap. Not so long ago, the entire crypto market cap was only a couple of hundred billion. We have almost hit $3 trillion since then, and that has been factored into current prices across the board.

So, if you can warrant a 50X return in time if the project succeeds, that figure may be multiplied many times over as well. This is how you succeed at investing in this market. Good trades will make you decent money, but you won’t create wealth that way. Identifying solid projects in a fast-growing niche or sector is how enormous gains are achieved in this market, especially if you catch a project while it is still in the micro-cap sector.

I guess a lot of people are happy with some extra money, but in my opinion, that misses the forest for the trees. Personally, I invest, I trade, I build, I write, simply because I don’t view them as extra money or even as a business. It’s an economy diversified to maximize safety and gain. Your viewpoint dictates your actions. The more time spent in the market, the greater the perspective, which can open up tremendous opportunities. You need to see it before you build it!

Why No Single Metric Should Drive Investment Decisions Alone

This is perhaps one of the most important points, even among those who actually conduct research and analysis. Essentially, it addresses confluence, which is established by acquiring multiple data points that align with your underlying investment decision or thesis. This increases the likelihood of success. Unfortunately, a single data point is not sufficient to base an investment decision on.

Final Thoughts

There is no escaping the need to put in the time to sift through what’s on offer in the crypto space. You could avoid it completely, but then you would be more of a gambler than an investor. Sufficient research is imperative in investing, but it does not guarantee success. Serious investors put in serious time to try to identify tomorrow’s gems! After all, good investment decisions require good research! See you next time!

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