🧠 Before You Buy: 7 Questions Every Investor Should Ask 💸
In crypto, it’s easy to get caught up in hype. But if you want to protect your capital (and sanity), don’t just FOMO in—pause and ask yourself these 7 critical questions before every buy:
1️⃣ What problem does this project solve? If the answer is vague or feels forced, it’s probably just noise. Real value comes from real utility.
2️⃣ Who’s behind it—and are they doxxed? Strong teams don’t hide. Google the founders, check LinkedIn, look for past successes (or failures).
3️⃣ Is there real demand for the token? Does the token need to exist? Or is it just a glorified fundraising tool with no actual use?
4️⃣ What’s the market sentiment & volume? Are people buying this—or are you the only one showing up to the party? Low volume = high risk.
5️⃣ Is the chart showing strength or weakness? Don’t ignore technicals. Buying into a freefall without support is how bags are born.
6️⃣ What’s the downside risk? Can you stomach a 50% drop? What happens if this goes to zero? Always know what you’re risking.
7️⃣ What’s your exit plan? No entry is complete without an exit. Set your take-profit and stop-loss BEFORE you buy.
📌 Pro tip: If you can’t answer at least 5 of these confidently, you’re not investing—you’re guessing.
Stay sharp. Play smart. And always protect your capital. 🛡️
🔥 The ‘Buy the Dip’ Trap No One Tells You About! 📉
Let me break this down like the brutal math lesson it truly is:
We’ve all heard the crypto chants:
📌 “Just DCA!” 📌 “Buy the dip—it’s basically free money!”
But here’s the cold truth—the ruthless math behind losses:
🚨 Drawdowns are Brutal: - Lose 10%? You need +11% just to break even. (Easy, right?) - Lose 50%? Now you need +100%—a DOUBLE—to break even. - Lose 90%? Brace yourself—you need a 10X (900%) rally just to see your original investment again!
Let that sink in.
📉 The Psychological Trap: When your coin finally moves up, the same voices that urged you to “HODL” now scream:
💎 “Don’t sell yet! This is just the start!” 🚀 “We’re going parabolic!”
But think clearly: 👉 Your break-even point is someone else’s 900% profit. If YOU were up 900%, would you hold indefinitely—or secure profits?
🎯 The Truth Behind “ATH Discounts”: They say, “It’s down 80% from ATH! It’s a steal!” But ask:
- Is there real demand? - Is the team active? - Does the market still care?
Coins like $SAND, $POL, and others didn’t “dip”—they collapsed. Recovery isn’t about patience alone; it’s about genuine relevance and market interest.
✅ When “Buying the Dip” Actually Works: - Strong projects in healthy trends 📈 - Dips respecting key supports 🛡️ - High-volume buying at lows 💰
❌ When It Doesn’t: - Dead projects, zero volume 🪦 - “Cheap” after a massive crash 💀 - Hopium-driven buys: “It can’t go lower!” 🙏
Before you jump into the next “dip,” ask yourself:
- Is this a genuine dip or a death spiral? - Am I buying real value—or stepping into a value trap? - If this falls another 50%, am I still confident?