Question #3: Do I understand what this crypto does?
If you don’t understand it, that's okay. Your goal as a crypto investor is not to be across what every crypto does. You don't have to waste time becoming an expert - but having a basic understanding of what the crypto does will increase your chances of success.
Inside my community I teach my students how to find a niche that really interests them, and lean into it heavily. I’m a huge fan of keeping things what I call “country simple”.
As long as you use the Crypto Flywheel™ as a basic framework, and you understand what the crypto does, your chances of being successful are way higher.
Question #4: What are the “tokenomics” of the investment protocol?
Tokenomics simply refers to the supply and demand characteristics of a crypto project. It takes into account many factors, which include...
How does money move into the project?
How does it come out of it?
What's the circulating supply?
How many coins and tokens do the original developers of the blockchain have?
Is it locked up for a certain amount of time so that they can't sell it all and dump the price?
All this kind of information is readily available. Any legitimate investment will have their tokenomics on the white paper. You will normally find it linked on the homepage of their crypto investment.
Question #5: Does this investment play a role in my Crypto Flywheel?
This is something that you want to ask yourself at all times.
Does it create cash flow?
Does it appreciate in value?
And does it allow me to buy more cash flow?
If the crypto I’m considering investing in doesn't clearly show me a pathway towards one of those three things, I don't touch it.
You'll know when you're an investor - not by the amount of money that you've made, but by the discretion that you exercise when deploying your capital.
That’s how you become a mature, net-worth-expanding individual in the crypto space.