Purchase of Crypto-currency as a long-term investment.
Following the growth of the crypto currency, not only various cryptoprojects appeared, but also various experts and specialists in this field. Both real and false. And they all think that it is their duty, something to advise - what to buy and sell, when, where, and so on.
In this situation, of course, there is only one thing: yes, one can and should listen to someone else's opinion, especially the opinion of people who are more experienced in this or that sphere. But here the final decision and responsibility for this lies only on yourself.
Therefore, if you are only doing the first steps in the crypto industry, you should immediately understand for yourself a few key points: the entire economy associated with various crypto assets is extremely "young", so it is very profitable, but it is also very risky in terms of possible losses. Therefore, when starting to work with coins or tokens, always remember that unsuccessful or simply fraudulent cryptoactive assets can completely depreciate for several hours, taking with them the bottom of the millions of dollars of newcomers. And the fact that they can earn a lot - throw it out of your head. This will save you from unnecessary euphoria and emotions at a price that always, always, sooner or later, will be your business. Only the maximum "cold" head and minimum of emotions.
Anyone who does not advise what, and whatever the "level of his authority", remember - this is just one of many subjective opinions. This means that this may be erroneous for one reason or another. This also applies to this article. Do not look anywhere on the "ready and right" behavior strategies on cryptor - they just do not. Only due to the constant accumulation of knowledge and experience you will be able to create your own, work in your case and not fit anyone else.
Therefore, based on the above, this article will not have a "recipe for success" ... alas, but in my life I have never seen them ... Here you will find (I hope) only a reminder of some important, so to speak, highlights , which should pay special attention.
Explanation, here it will be said about the long-term investments of cryptoactive assets, the so-called crypt depository. There are other approaches for earning by speculation, which differ fundamentally from each other.
Choice of crypto currency
Here are a few key points:
Capitalization. If the coin that you paid attention to exists for a relatively long time, then it is worthwhile to find out its volume of capitalization and in what so-called. top it enters - 10,50,100. For this, there are a number of convenient resources that act as aggregators of such information, for example, CoinMarketCap, Coingecko, etc. In fact, the capitalization of a particular crypt is the number of coins multiplied by the wishes of its sellers, but this parameter is a sufficiently informative indicator of "trust "users to a particular crypto activity.
If the coin is so "young", that it is not either that in the tops, but in the lists in general, more detailed analysis is required, using as many different sources as possible. In addition, it is very useful and some kind of flair for future assets in the future, but it already comes only with experience.
Collection of crypto-active data. It is necessary to collect, about the crypto currency you are interested in, more basic data:
- the most important point is which technologies are the basis for crypto-active - what are they, what are their usefulness, what are the advantages over the already widespread ones, what problems with their application are planned to be solved;
- when it arose and what prompted its creation;
- The composition of the team of this cryptoproject is a few people or the company, does it include any personalities known in the crypto community?
- the availability and composition of the infrastructure - wallets, services, under what platforms are already created, etc;
- what the team is planning in the near future and what is being realized right now.
If, at least on several items, there is an exhaustive and positive information, this is already a big plus for the candidate in the investment portfolio.
If, however, this is just a complete copy of the existing crypto assets, without any competitive advantages, which even potentially can not solve any economic problems - this is a common shchitkoin, with an extremely foggy and, often, sad future.
It is necessary to get acquainted with the parameters of the issue and the mining of the asset. Limited emission and more complicated mining, that is, the more difficult it is to get a coin in the future, the better.
Crypto currency exchange platforms. If a coin is already traded on stock exchanges, then it is necessary to clarify on how many and exactly which areas it is traded on. Then pay attention to the daily trading volume. The larger the number, the larger the stock exchange and the volume of trading, the better. Because, firstly, it is quite high in its liquidity, and secondly, it means that it is in demand and valued, at the moment, by the market.
News background and the current opinion of the crypto community.
Here the maximum wide coverage of sources is important - profile forums and blogs, search by keywords, etc. A good sign here is the moment when the project team as often as possible gives news to discuss their offspring - entering new markets, partnership agreements, the introduction of new technologies and so on.
Direct application of cryptoactive. A very important parameter. Any cryptoactivity is primarily a financial instrument, so it must have high liquidity. The more opportunities for converting to other tools exist for a particular crypto currency, the better. Even better, when it is already possible to pay for goods or services with this crypto currency directly.
These are the moments that you should pay attention to. At what, even if you already own any crypto-active assets, do not be lazy to ask yourself again the important question "why you have not sold it yet and what exactly is the decision to keep it going on." The market of crypto assets is extremely dynamic, therefore what looked promising literally yesterday, today can already demonstrate all the signs of a "dying" and nobody unnecessary, in the future asset. Periodically review your portfolio, based on current market realities.
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Great article! I found it interesting.
Talking about ICOs, after doing your own research, also finding good ICO projects can be profitable.
I want to share with you guys a new exciting project I have just discovered: RAWG.
Look at this article where the team explains:
“Why the games market needs RAWG”
https://medium.com/rawg/wp-bits-1-why-the-games-market-needs-rawg-ccf039c0bae7
The ICO will start in a short period and they are at the moment in pre-ICO phase. This is the site: https://token.rawg.io/. It's a video game discovery platform that converts your skills into goods and services (the site is already working, with more than 57,000 games in the database).
Have a look and get some information while doing your own research!
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