The community in crypto investments

Cryptos are known for their volatility but also for their cutting-edge technology. The community plays a major role in it.

It is not just groups of investors, but also developers, marketers, influencers, or individuals.

Understanding the role of the community in crypto investments is essential.

Trust

Trust is crucial in the world of cryptocurrencies.

Unlike traditional financial systems, which are regulated and often backed by physical assets or government policies, cryptos heavily rely on the trust of their users. And should we trust just because the intermediary is regulated and wears a nice suit?

When a community shows significant conviction for a cryptocurrency, it can greatly reinforce investors' trust.

Information sharing and education

So much is happening so quickly in the crypto community that it is difficult to stay informed. Communities can be found on Reddit, Twitter, Telegram, and Discord, and they are real-time sources of information.

Collective decisions

In many blockchain projects, especially those based on decentralized finance (DeFi), community members play a direct role in decision-making. Through governance mechanisms, token holders can vote on key decisions. This approach empowers users and ensures that the project evolves in line with the interests of the community.

But: Risks and manipulations

Following the advice of communities is not always positive. The cryptocurrency market has experienced many cases of manipulation, often leaving the latecomers as the ones who lose out.

Keep a critical eye!