Is Making Money Really that EASY?
Yes! but first you have to invest a little in your financial intelligence. Here are some tips.
Finding the right Alt-Coin to invest in is more of an art than a science. There are so many things to look for before risking hard earned cash. This is especially true considering the fact that there are now thousands of Alt-Coins in the market, many of which are prone to pump and dump schemes. Some coins and block chains have exceptional potential and others are simple copy pastes of other coins offering nothing unique. Since the set of rules governing most cryptos (perhaps all) are public in the form of programming code, anyone can copy the rules from one currency and create a new token with the same exact set of rules.
So what should you look for when investing in the highly volatile crypto market?
Before I say anything else, and I'm sure you've heard this before, but it is well worth repeating. Only invest what you are willing to loose and never use leverage until you are very comfortable with what you're doing.
Here are some of the things I look for when choosing a an alt coin:
Personally I start off by looking at how long the coin has been around and the price action during such time. Does the chart show a lot of pump and dumps? or is the price action similar to the market as a whole.
Who developed the coin? It is always good if you have a reputable name behind the coin e.g. in Basic Attention Token (where the developer Brendan Eich is the founder of Mozilla and Java Script) or Vitalik Buterin founder of Etherium where after listening to the guy for a minute you realize he's a geeky genius.
Usability. What functionality does this token have? Does it have a product that is already usable? I recommend signing up and trying it out. See if the product is any good. Check if it is user friendly and if you think it'll have mass adaption like Steemit.
Use technical analysis to determine if this is a good time to buy the token in question. You wont find technical analysis books about crypto but the techniques used in the stock market are easily applied to the crypto market. A great place to start is by reading John J Murphy's Technical analysis book (URL below).
Another question that you should probably ask yourself is, does the coin have scarcity? In other words what is the maximum number of coins that will ever exist for a particular blockchain. Then check to see how many are already in circulation. If for instance the max number of coin "abc" that will ever exist is 100 Million and only 25 Million are currently in circulation then ask yourself this, where are all those other coins going?
I hope this was helpful. Best of luck with your crypto investments and let me know if you have any questions or comments.
Alt coins enjoy the same principles that any other asset does: the Law of Supply and Demand prevails.
The single most important factor is if others value the currency and seek to obtain it. The more people that seek to buy it, versus the supply of the Alt coin, ultimately determines its value.
Secondly, does the Alt coin have liquidity? If it is not easily bought and sold, the value will not rise.
Cheers!
So true! Thanks for sharing. I always look at volume and liquidity. There's nothing worse than getting stuck with coins that you're desperate to get rid of. Also, best way to see the supply and demand is by looking at the order book. It'll give you an indication of just how easily the price will move up or down.
Yes, easy.