Undue reliance is a concept that involves relying too heavily on something or someone for advice, guidance, or support. This can be especially problematic when it comes to investing in cryptocurrency due to the high degree of risk associated with such investments.
When it comes to investing in cryptocurrency, undue reliance refers to relying too much on third-party sources of information and/or advice – whether they are individuals or groups – without conducting adequate research and analysis on your own. While seeking out external sources of information may be helpful and even necessary at times, ultimately you should strive to independently assess any potential investment decisions before making them.
To ensure that your reliance is not undue when researching potential investments in cryptocurrency, here are some tips:
-Understand the technology behind each coin you’re considering; don’t just look at price movements alone as this will give an incomplete picture.
-Be careful about taking investment advice from those who stand to gain financially (such as promoters). The decision should be yours based on your own research rather than someone else’s opinion because their interests may conflict with yours.
-Read reviews from multiple sources and make sure they are unbiased so that you can get a balanced assessment of the project being discussed.
-Don’t forget to do your own technical analysis; use tools like CoinMarketCap or TradingView which provide valuable data points like relative strength index (RSI) values and candlestick charts which help inform trading decisions.
-Finally, if possible consult with experts who have experience trading cryptocurrencies but remember not all so-called “experts” know what they’re talking about!
