Researching over the internet to get more knowledge is harmless. But the financial advice provided there should be taken with caution. What may work for one, may not work for you.
Since the pandemic began, the global economy has slowed because of COVID induced lockdowns.
It resulted in the disruption of supply chains and a rise in unemployment. To ease off the pressure governments printed more money. This further catalyzed inflation.
Taking all these factors into account, people became more conscious of their financial health and began searching for related content over the internet.
To meet the gap in supply, many of the ‘financial gurus’ that we see online arrived on the stage of an already burgeoning creator economy.
They started providing advice on how to manage your finances in an efficient manner.
One may wonder whether to abide by this advice or not.
DYOR – Do Your Own Research
As in the case of a person’s physical and mental health, financial health advice is also like medicine. There’s no panacea.
What may work for a person, may not work for you.
That’s why it is always advised to not blindly follow any of the self-proclaimed financial gurus. They may provide advice, but it is not binding.
If any of their audience members suffers because of their advice, they are not liable to pay for the damages.
That’s why it is recommended to DYOR (DO YOUR OWN RESEARCH) and then invest. DYOR is one of the most underrated jargons of the financial world.
Even in traditional financial offerings, the service providers always provide a disclaimer that their products have a degree of risk and the subscriber is liable to bear it. These service providers are experts in their field and possess licenses from the regulators.
As the crypto industry is unregulated, following a crypto influencer’s advice is even riskier. Regulatory licenses do not exist. So, how can you make sure that a crypto influencer is worth following?
There is no clear-cut answer. There could be people who have profound knowledge of traditional finance but may struggle with crypto or vice-versa.
If a person is well versed with the intricacies of the given subject, they should be followed.
However, even their advice is not perfect. Therefore an investor is recommended to DYOR. The analogy of medicine applies in this case too. Only do what works for you, as your circumstances are unique.
NFA – Not Financial Advice
Due to the absence of regulatory licenses, crypto influencers use the abbreviation NFA (Not Financial Advice) as a disclaimer.
Whether a person provides a disclaimer or not, NFA should be assumed without a second thought.
In order to understand concepts and complexities, trustworthy sources can be consulted. In spite of that when it comes to investing, the financial advice offered should not be considered absolute.
So, always consume any content with a critical eye. It is quite easy to create content, but it has to be checked how veracious and fruitful it is.
The content creator may provide all the caveats and the advice may also seem suitable. Still, the ultimate risk is your own.
A routine of self-reminding that any advice is NFA and DYOR before making an investment is desirable.
Financial planning is necessary for a stable future not just for your own but also for your family’s.
Just like you are responsible for your physical and mental wellbeing, you are responsible for your financial wellbeing. No one is here to spoon-feed you.
So, remember to DYOR, and invest only as much amount as you can afford to lose. This is NFA.
News recommendation: Delhi Mans’s Crypto Wallet Hack Linked to Hamas