Once, you’ve decided to try your luck with cryptocurrency, it’s now time to select your projects. And here’s when the tricky part comes in. How do you actually pick up coins to buy? New cryptocurrencies are created and listed on exchange platforms daily, which, telling the truth, does not make a choice much easier.
The process of looking for and selecting new crypto projects for investment is challenging even for experienced players on the market, not to talk about new crypto investors. What’s more, getting familiar with the cryptocurrency industry if you’re only starting may take a few weeks.
No worries, we’ve no plans to scare you away or throw a shadow on cryptocurrency investments. Indeed, we’ve prepared a helpful guideline on how to pick the best coins. Keep reading to find out what factors are the defining ones to buy cryptocurrency.
CoinCasso is a crypto exchange with thousands of active users and followers. We’re especially proud of our community and the people around our platform who share the same interests, passions, and even financial decisions. That is why our goal here is to shed some light on the sometimes mysterious and even suspicious cryptocurrency world so that everyone can see that crypto investments are not something to be terrified of. With a smart approach and proper risk management, anyone can purchase cryptocurrency and earn profit.
Without a doubt, a choice of cryptocurrency will depend on your investment strategy, the amount of initial deposit, whether you’re an industry expert or a newbie, etc. Today we will be talking about basic understandable things to make sure that our pieces of advice are simple and clear. Let’s start!
The first thing you can do is research the project’s team. You can do this on LinkedIn or just google any available or relatable information on founders, employees, and the company itself. Why? Most likely, when it comes to financial risks and gains, you want to invest funds in something reliable and valuable. That is why the team behind the digital currency of your choice needs to be experienced, talented, and skillful. Then, the chances that their project is successful and worth investing in are much higher – it’s as simple as that.
What to look for? Anything related to professional expertise – relevant experience, education, previous projects, etc. You want to entrust your funds (no matter if it’s a big sum or a smaller one) to people who know what they’re doing rather than beginners or amateurs. Check all the information regarding the project’s founders and their backgrounds.
This technical document is usually released before an ICO (initial coin offering). It contains all the important information on a specific cryptocurrency – how it works, its technology, and even future plans and prospects. White papers have some technical jargon but you will quickly get used to it. These documents are priceless because they have everything you need to evaluate a coin’s chances to hit the top or bottom of crypto charts. The more white papers you read – the more aware you are about what’s going on in the cryptocurrency market and what are the best digital assets to invest in.
If the company did not bother with making such fundamental document as white paper flawless, they can choose the same approach in developing their coin
Watch out for some unconfirmed facts and statements. For instance, no company can guarantee that their cryptocurrency will reach this or that price in a year. As we all know, the crypto market is volatile and crypto trading is quite unpredictable too.
Look out for any signs of how the project is planning to grow and develop. Sustainable and well-planned growth means that the company has serious long-term plans and is not just another scam.
Even though it may seem that vision is something unclear and vague, it’s an essential part of your cryptoanalysis. Clear vision and goals help to identify the future plans of the company and the steps needed to be taken. Moreover, it’s a sign of long-term ambitions. It’s a wide-known fact that it’s best to invest in crypto coins that will remain on the market at least for the next few years. In such a way, your digital assets will be safe and profitable. Otherwise, you can buy cryptocurrency that will crash within the first year and you’re risking losing all your deposit.
Just like with any other product’s price fluctuations, the pricing history of a particular coin or token shows whether it’s worth investing in. If a cryptocurrency you’re looking at is highly volatile, it’s not recommended to select it for investments. With the available track of a coin’s changes in price, some industry experts even try to predict how it’ll behave in the future. We want to remind you that it’s not the smartest approach here as price fluctuations can be totally unforeseen. To be on the safe side, one should diversify an overall portfolio and invest wisely rather than hope for luck.
Technology lays the foundations for any cryptocurrency project’s success. It’s one of the crucial factors that define how a particular coin will perform against the other digital assets on the market. One of the best examples of why cryptocurrency technology is vitally important is Ethereum. Its Blockchain network is innovative and scalable – it means that developers can easily integrate this code into their applications so that crypto can be used as a payment method. It’s one of the reasons why Ethereum is one of the most popular and valuable coins now.
The company’s leaders are the ones who have a huge impact on decision-making and building up the community. Check out what the CEOs are saying about the coin, whether they have invested in it, and what are their future plans. When it comes to community, you can go on social media and see whether the project is active there. If they’re posting regularly, have followers, and interact with their audience, it means that they have serious plans on remaining on the market.
The best cryptocurrencies to buy are the ones with solid road maps. Ambitious and realistic plans should have certain timelines, and you can find this in the road map. When the company will release new updates or features? What is currently under development? These are the points that show that the project has set its goals and is working on achieving them.
The lack or even total absence of timeframes can be seen as a lack of determination toward developing the product.
Disclaimer: Cryptocurrency trading can involve high risk and may not be suitable for every investor. Before deciding to trade cryptocurrency, you should carefully consider your investment objectives, level of experience, and risk. You can make money from trading, but there is also the risk that you may lose some or all of your initial investment. Therefore, never invest money that you cannot afford to lose.
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