What to Know Before Investing In Cryptocurrency
The cryptocurrency markets have been booming this year with many coins experiencing several hundred percent gains. New investors are rushing into the sector looking to take advantage of the excitement around this new technology. Cryptocurrency is a unique and volatile market and unless you take the time to educate yourself you could lose a lot of money.
The best investment you can make is your education. Taking the time to learn about how the technology works and getting involved in the cryptocurrency community will greatly increase your chance for success! Once you have thoroughly researched a project and are confident in its value, you will be less likely to sell in a panic when the market takes a dip.
Uneducated investors are the ones who buy high and sell low, trading on emotion instead of knowledge. If you won’t take the time to read a project’s white paper, you have no business sending them your hard-earned money!
What to know before investing in ICOs
Initial Coin Offerings have become a popular way for blockchain companies to raise capital and for investors to potentially make huge returns by investing early. ICOs have become so popular that there are literally hundreds right now with more launching every day.
Many ICOs have raised millions of dollars in only a few short minutes. It is important that you don’t get lost in the excitement surrounding ICOs, and that you only invest in quality projects. Many ICOs may sound great but when you dig a little deeper you may find they are not all they are cracked up to be.
Here are the most important things to look for before investing in an ICO:
1. Do they have a good website with all of the relevant investor information?
2. Is there a good team behind the project, with experienced and trusted developers?
3. Do they have a well written whitepaper that clearly explains the project?
4. Is it open source and are there active improvements on GitHub?
5. How active are they on social media? Do they have an enthusiastic online community?
6. How will the ICO funds be allocated?
7. How is the token structured? Look at things like total supply.
8. How is the ICO structured? Will there be a presale, what is the price of the token?
9. What is the community sentiment? Are people excited about and happy with the development process?
10.Does the project have a clear use case that will have market demand?
11.Do they have a working product?
12.Roadmap – Are they meeting their project goals on time and do they have a clear plan for the future?
By following these 12 guidelines you can ensure you are making a good investment!