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Investing with emotions - benefits & risks

Welcome to SafeMoon Labs, a laboratory think tank held on Twitter Spaces by SafeMoon Educators!

Disclaimer: Emotions are a thing you should certainly be careful with while investing. Whether it is by watching your portfolio or looking into new projects to invest in, emotions can do good or harm to the wealth you've gathered or created.


There are two different areas in which emotions can play a major role in creating either a positive and/or a negative reaction:

1. Investing in new projects

2. Investing in already invested projects

New projects offer new possibilities. The so called "FOMO", the fear of missing out, pushes people to be interested in several new possibilities to generate money. Whether it is on a Pre-Sale or on a change of a aspect in a token or coin, people with a drive to be open for investments can get manipulated. People offer you quick wealth, high potential or big raises - the new project on the horizon, the crypto of your generation - all of this drives people to feel falsely hyped and pushed to invest. Sometimes it goes good, mostly it goes bad, because not everyone can be the next big thing. Therefore, investing in new projects without doing your own research and due diligence will most likely end in a loss.

Investing in projects that you're already invested in is different. Imagine you are investing in a token or coin which is about to drop a feature. You feel pressured to think about expanding a bag because you know it might be a good possibility to double your investment in a short or long run, which is not a bad idea. But here it is crucial to know that - if a project is not doing good and not performing in any way, for example existing for two years and still missing on features they offered at the beginning - it is wise to overthink the thought process. Otherwise, money will be dropped onto a bad position, so called "flawed perspective". The money will be in the project and it might also rise after the release of a wished feature, but it doesn't mean that the estimated wealth will come out.

Regarding those two options, we know that investing with emotions is a very risky and potentially bad option to choose. While people can make a profit and a good fortune with emotional, spontaneous reactions, the chance to hit that is highly unlikely. I for myself choose to not invest into any uprising, emerging projects with overhyped advertisement in Telegram or anywhere else, even when its 25 dollars, as even the smallest investment can make a difference in a longer run on a more stable, secure project. But there are also the moments where a promising token comes up and you want to try it, just always remember: Do your own research, be secure and don't invest what you don't have, then you are good to go to try it out.



Gandalf - SafeMoon Educator

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