'The earliest birds catch the fattest worms', i am sure most of us are familiar with that phrase. This also applies in the crypto markets as the early adopters of a certain crypto listed on the markets, they tend to benefit more as compared to the late comers. Early adopters of bitcoin bought it when it was worth $0.02 and those investors are millionaires if they held their coins up to date, so as BINANCE coin investors who bought it when it was $0.11 now they are speaking a different language.
It is undeniable that being among the early adopters is the best thing to do as there are higher chances that you will be rich. When it comes to investing it does not have to be one sided as it is a double edged sword which can slice through with both edges.
Pros and Cons
- Price
- Value
There are Prose and Cons when it comes to being an early adopter. Lets take a look at the picture below of Harvest Finance (FARM )so that you can easily understand what i mean.
I am sure you can see what has happened in that picture, that asset if currently being traded at $186.66 and its Return on Investment is -91.46% which is a huge fall from it launch price. It has an all-time high of $2,236.04 but you can see where it is now. Can we imagine someone who took a loan and bought 1 FARM at $2,200 how he is feeling right now.
How could it fall like this?
There are certain factors which contribute to this, Its either the launch price was too much (overvalued) and it did not take much time for it to be devalued. Maybe the value of that asset was not worth the price, that another factor, or maybe it lacked proper promotion so as to boost the market capitalization because considering its supply it is good and it is worth looking into that coin as it has higher potential.
Conclusion
So its good being an early adopter but i don't think it is wise to spend so much or all of your money on a newly introduced altcoin to avoid disappointment, instead invest what you can afford then give it some time watching closely the capitalization once you see that it is gaining momentum then you increase the size of your portfolio.
I hope this will be helpful especially to the new comers in the crypto market.
