With more than 4,000 cryptocurrencies currently out there in the market, you might be wondering how to select the right one for you. Here are some tried and true tips that may help guide your next investment in the crypto market, particularly if you happen to be a beginner.
While Bitcoin and Ether may very well be the most well known cryptocurrencies out there, there are other smaller (and cheaper!) coins that hold just as much promise down the line. Getting access to these coins early could prime you for big gains in the future, should they withstand the test of time.
1. Read, read, and then read some more.
The first step is definitely educating yourself enough to understand everything there is to know about whichever cryptocurrency you are considering. Understand the company’s exposures, and read up on some news surrounding it — focusing particularly on whether or not it is experiencing legal troubles. Keeping your eye on message boards related to cryptocurrencies is also a great way to ensure that the coins you have in mind are scam-free and come from upstanding companies. Besides, you can join cryptocurrency courses such as Dchained, which is an excellent educational guide to help you feel more confident in the crypto world.
2. Keep your eye on ICOs (Initial Coin Offerings)
ICOs are like IPOs but for digital currency companies. Much like the stock market, ICOs present good opportunities for investors and prime you for big gains.
3. Ease of Use
Buying, selling, and investing in your cryptocurrency of choice should not be complex. Make sure that the coin you have your eye on is readily available on the big exchange platforms and can be bought and sold with ease.
4. Check the company’s vision and market validation
Does this coin aim to solve a real world problem? Will most coins aim to give back people control over their data and banking privacy, some are merely fads (like Dogecoin for example) and may not translate into real world use. The company’s vision could help you make a decision as to whether or not this coin will have longevity in the market.
5. Pay attention to any and all institutional attention it garners
Big companies and financial corporations have thousands and thousands of analysts whose job is to determine the longevity of new products (or cryptocurrencies in this case) on the market. Pay attention to what the big players are putting money into, and use that as a possible guiding principle to what may withstand the test of time.Follow and Subscribe Nyasa TV :