Some investors are ready to invest on any project they come across just because they really want to make profit and some of this projects are considered to be a scam project which people invest reasonable amount of money. It is very painful when money is invested in this project and they end up becoming a failed one. I think good reasoning before investing will really help investors from losing much money about projects they do not know about much. Investors needs to ask themselves before investing "what if I lose my money investing it in this project? I think this question can help people to invest with the amount they can afford to lose or not to invest at all on project very not sure about.
Investing without any reasoning can just make one to invest without considering the risk and the probability of making lose or making gain from the investment.
Only stupid investors don't understand the risks in investing – on average they know what the risks are. I'm not talking about a beginner who comes with a few dollars and invests them in a new project - but the investors I mean are investors who already have a lot of experience in the crypto industry.
The goal of all investments is to generate returns - however, when it comes to risk, you should know that each investor has a different risk tolerance. I can say that some of them won't be afraid to lose $1K or more on the projects they invest in - but others will have to consider more risks because they don't have much of a budget.