The Three Es in Investing.
The following is a cycle that I have written that would describe a would be investor. Keep in mind that this is not exclusive to the crypto space. It can be applied to any market with the potential of would be investors.
I have used this concept to explain individauls where they possibly land in the potential investor cycle.
I call it the Three Es.
Exposure
The first cycle is exposure. Now it doesn’t matter what market you are looking at. It can be anywhere from the traditional stock market to the crypto space. The question is how did you become exposed to the potential investment. A friend? A colleague? Maybe online?
Start asking yourself these questions:
How credible is this source?
If it is an individual - Does this person have experience investing?
If it is an institution, does this platform have a long standing reputable reputation?
I make this a point because a lot of times we do not question information especially if it comes from a source that we are familiar with. It is your job to make sure you do your due dilligence when it comes to putting your hard earned cash into a potential investment oppurtunity.
If you were given enough information to corral your interest. Your next step should be gathering as much information as you can on the subject.
Which naturally leads us into the next process.
Education
Education is very important especially in the investment space. You would be surprised how many individuals I come across within this world that cannot explain to me what they just invested in. It is shocking to say the least. I would report that this is more prevalent in the crypto space. With the invention of bitcoin and related technologies there has been a rush of newly underqualified investors into the space with money in hand but hardly any guidance.
This leaves the space open to scammers and fake projects luring investors - along with their money.
Do not let this deter you. There are many reputable spaces in which you can invest into cryptocurrencies. Some of which include Coinbase.com - Binanceus.com - and Uphold.com. These are just a few examples but do not take my word for it. Do your research. Explore different platforms and see what makes sense to you.
The world of investing can be very confusing as well as intimidating. But if you create a system in which you can aggregate information, cross reference that info with multiple sources with trusted reputations you should be more than fine. Once you have become confident with the amount of information you have gathered on an investment you will have arrived at the final phase of the cycle.
Entrance
Entrance into any market can be done with confidence if you have executed your due diligence on the matter. By illustrating the previous two phases I have outlined maybe a map you’re currently on or a route that you have already taken. If I have added more clarity the end game might seem a little less complex.
By this phase you should be able to speak on your potential investments. This is paramount before any sort of money should be involved. This might seem like common sense to most but to many it isn’t.
People are odd creatures and will sometimes jump into things without checking to see if there is something to land on. I see it all the time. But on the otherside of that coin some won’t jump at all. The point is if you do choose to jump in. Do it intelligently. Have an educated plan. Create a network of accessible information. The internet can be your friend or your worst enemy in these types of scenarios.
Happy Hunting and don’t forget to share this article with someone who would benefit from the Three Es!!
-JK
