4 Vital Elements of a Good Investment. (And why Polkadot is one of them)
In other words, you’ll need to understand what Polkadot is all about:
- What are they selling you
- What is it going to do for you
- What are they looking for in return
Sounds simple, but crypto products rarely are. There’s one more problem.
Too often, we get caught up in how much we want the ‘’gains’’ instead of the product.
And then we act surprised when they suddenly dump all their coins on us or their CEO leaves and takes half of the cash with him.
When I was doing research, I read a very good piece of advice about feeding kids.
As a parent, it’s your job to put something on the table that’s reasonably nutritious, that tastes good, and that’s appropriate to the context.
It’s the kid’s job to eat it or not to eat it. They’re in charge of getting a spoonful of the stuff in their mouth, chewing, and swallowing it.
In this scenario, you, the professional trader are both the parent and the kid. You can opt for the easy, tasty but less nutritious meal but it will only hurt you and your portfolio in the long run.
How to tell your friends about the latest Crypto Coin you added to your portfolio
When you’re informing them about your new moon coin, you’re working with the same equation.
It’s your job to inform them to the best of your abilities. It’s their job to say this is a moon coin or a shit coin.
Sure, you could always try to sell people on the potential gains.
- A) it works miserably or not at all,
- B) you will lose their trust if it comes crumbling down
- C) it’s a lot easier for your friends to turn their back on you than it is for a kid to get rid of their parents
Instead, Crypthena offers you these four elements of Polkadot. A coin with endless potential.
1) Invest in something nutritious
The best products are nutritious — in other words, beneficial to the customer.
Yes, there are definitely coins that don’t actually do the world any good. But you’ll get the most value out of the coins that do.
Polkadot is a good example of a coin that brings something new to the table. It has its own blockchain that allows arbitrary data — not just tokens — to be transferred across blockchains.
Think about that for a second. That means that Polkadot can send contracts, medical files, or even academic records over a secure blockchain.
Can you imagine switching dentists without going through the hassle of filing all the paperwork? Just one smart contract, one verification by you, and the files are securely transmitted to your new dentist.
2) Invest in something that tastes good
On the other hand, you try feeding a kid broccoli.
I think it’s fantastic stuff. I eat it every week. Kids consider it the culinary equivalent of waterboarding.
A product is way more appealing if it offers something people want instead of something they need. We understand why secure transaction of data offered by Polkadot is something of value, but we’re way more likely to be swayed by their functionality to create private chains on their main-chain.
Basically, polkadot users have two options.
- You can use the relay chain which is their main chain
- You can create a parachain, that is a sovereign blockchain that can have its own token and optimize its functionality for specific use cases
For example, a parachain can be used by a company to pay out their employees.
A sovereign blockchain with the security of the main chain has endless possibilities. It can be set out to be a completely private blockchain for a particular group of people.
When you’re investing in a new coin, make sure it’s something you want and put the order in by telling yourself about all of the value the coin has too.
3) Invest when the time is right, and the time is always
Strawberries taste good in summer. Hot chocolate tastes good in winter.
A good product lasts through winter and summer.
Make sure not to be thrown off by the daily increase or decrease. If you know what you’re investing in and the worth of the product behind the coin. Invest today, or tomorrow or yesterday.
My friends always tell me; James you only tell us about the ‘’moon’’ coins after they have gone to the moon. But what they don’t know is that going to the moon is not a one-way trip. Good coins go to the moon several times over so if you miss the first ride, you can always jump on the second one.
4) Make sure it’s fresh
Even the tastiest dinner doesn’t look all that good after a couple of years go by. That means you’ve got to set a time when dinner gets pulled off the table.
If you don’t keep up on your coins or the market, you might end up being invested in something that turned out to differ vastly from the product you thought you bought.
Alway stay informed on your current investments. Are they delivering on their promises? Are they following their roadmap? Does the product actually work as well as they are saying?
Polkadot is a tasty dinner now and hopefully, it ages like fine wine too.