Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Zed0X on December 26, 2018, 11:48:11 PM
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How to Find the Best Cryptocurrency to Invest?
Here are some key points to know before investing in any digital asset.
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nvesting in cryptocurrencies isn’t some pattern-driven process. I assume you already know, that you must do your own research before investing in any digital asset and invest only as much as you can afford to lose so I will not go deep into this. However, there are some key points I would like to suggest you.
Fundamentals
When making a research in which cryptocurrency to invest try mainly focus on cryptos which are driven by some fundamental solutions which actually solves a problem, is with at least $20 million USD market cap and has at least 10 BTC daily trading volume because you need to make sure that there will be enough buyers when you will decide to sell as liquidity is a ‘safe house’ for your investment. If you plan to invest in something below-mentioned criteria – then you are just purely gambling.
Communication
Make sure that the asset you want to invest has a proactive team which actually connects with its community in every social channel and there are not any ‘shady signs’ within public communication. How to find out if the communication is ‘healthy’?
Join all/majority of the asset’s social channels and place some questions what concerns you regarding the project and address it to admin or officials. They will be forced to act and respond if they are serious and professional about what they do because the price of the asset is driven by how many people believe in the asset’s future. So strong community equals strong asset.
This is why you most likely will get all the answers from the professional teams, and will not get any answers from the projects who aims to fund their project ASAP rather than grow strong, organic community.
Moreover, the team section on the asset’s official website must be flawless. If it does not look clean and professional – then the whole project might not be as serious as it should be, because the team section is the ‘Book cover’ of the whole project.
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How much to invest?
There is a simple but effective answer for this – if you decide to invest in cryptocurrency, invest the amount which doesn’t mess your minds. If you invested first and then feel bad about it then you have invested too much. Lower the stake in future and take it easy, investing never meant to be complicated. As Warren Buffet said:
If you have more than 120 or 130 I.Q. points, you can afford to give the rest away. You don’t need extraordinary intelligence to succeed as an investor.
The thing is – in cryptocurrencies (I believe this fits in stocks also) you win if you handle the emotions. You lose only when you sell in a deep loss (panic sell/weak hands). You didn’t lose until you sell.
I am not going to endorse cryptocurrencies about significant 2019, ‘moons’ or ‘lambos’. I like facts. But the future of the highly tokenized world is just a matter of time. If the banks would be fully tokenized and built on blockchains the possibility to launder the money would be eliminated. Integrity would be totally pure.
Some big players know this. This might be one of the reasons why Bakkt, Fidelity, and Nasdaq is coming in the ‘crypto game’ in Q1, 2019. They do not know if the old banking system will handle the changes. That’s why they must have ‘both’ legs in different markets – fiat and crypto.
To conclude, if you decided to invest in cryptocurrency – welcome, it seems you like freedom, integrity and not overpaying for services. For example, did you know that $257 million in BTC was transferred for $43, while the banks would charge you $1,28 million just for a transaction? So what is the real Wild West?
https://www.cryptovibes.com/editors-choice/how-to-find-the-best-cryptocurrency-to-invest/
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There was recently statistic data about the number of ICO projects which fail. And I think that it is much more necessary to educate people more about not only possible flaws of crypto but also about possible its advantages.
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Before investing money in a cryptocurrency, you need to weigh everything and calculate your chances. Regarding which cryptocurrency to choose, I think you need to rely on expert opinion and choose top coins to trade with.
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A large idea about trading I have got from your post. Thanks for this valuable suggestions :) Waiting for more valuable post from you!
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~snip~
Regarding which cryptocurrency to choose, I think you need to rely on expert opinion and choose top coins to trade with.
I suggest you be careful with relying on opinions of these so called experts. There is a reason why they always say "This is not a financial advice" and "Do your own research". That's because they also commit mistakes.
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You lose only when you sell in a deep loss (panic sell/weak hands) - this statement is right, but I would also add that people lose because they don't know how the crypto world works. Many people started trading or investing just because of the high popularity of the crypto and this is a big mistake. You need to get skills and knowledge before investing.
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To find the best crypto investment one has to do his due diligence. Investigate the project and the team members behind the project. The team members say a lot about the integrity of the project and also read the white paper to find out the technology behind the project. Follow the project on telegram ask questions base on the responses and the number of members on the channel one can then decide whether to invest or not.
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Warren Buffet said a great thing. And I didn't know that he has the second-highest amount given to charity ($40.80 billion) in the world!