Yes, that is definitely true.  You should understand everything about the coin prior to investing. Analyze the project carefully and know everything about it including its concept and basis.  Your knowledge about the project is the best foundation so you will not easily be affected and panic whatever will happen.   Meaning, you should be a true believer in it and not because other people make money from it.  This is because if you truly understand the basis of your coin, you will not be easily affected even its value deflates.  Principle really matters and you have to stick with it.

But no matter how true believer you are, you must still put in mind that investing is like gambling so, You should not to invest you cannot afford to lose.