The average individual investor simply wanting to improve their financial situation via cryptocurrency investments needs to have 4 major components in place to be consistently successful:
Early-stage seed access
We live in incredibly uncertain times with faltering supply chains and rising unemployment. Money atrophies in banks as inflation outpaces interest rates. People in increasingly greater numbers are working remotely from home and seeking alternative revenue streams as AI incrementally becomes ubiquitous and erodes jobs. The gap between the haves and have-nots has significantly widened.
Some of these people, looking to improve their financial situation get a ‘hot tip’ from a friend that doesn’t know a lot more than they do about crypto, and before you know it, they step into the crypto casino, quickly developing an insatiable addiction.
They are dazzled and overwhelmed by the sheer number of cryptocurrencies on offer, ranging from the very good and promising to the blatant scams intentionally designed to fleece them of their money.
Whales and bots manipulate the token price while influencers accept tokens in exchange for promoting the project to their audiences hoping to sell their newly acquired tokens at the top of the market, working against the interests of the project, and the audiences that followed their advice.
Once again, this leaves the smaller investors at a severe disadvantage that will often result in them bearing many of the losses and falling even further behind financially.
While an individual can learn to conduct a thorough due diligence process and better time their exits, these are usually lessons learned by trial and error, after getting burned on more than a few occasions.
Projects typically seek funding from professional investors first and only begin to consider individual avenues after exhausting their preferred options. The individual investor usually only gets a shot at the projects that the professionals reject and one must ask themselves why the professionals rejected them - the average investor most likely doesn’t know the reasons why but they should.
Most individual investors simply do not have the network, liquid capital, knowledge, and expertise to consistently purchase the best tokens at the best price and time aka the seed round of the world’s most promising Web3 projects and optimally time their exits.
Individual investors would be much more successful if they were able to consistently participate in many seed investment rounds and leverage the collective knowledge and expertise of many.