How to select the type of cryptocurrency to invest in.
There is a boom in the market now and as usual we have more people looking into the benefit of the cryptocurrency world, there are new investors every day and there are also lots of scammers looting people of their funds every day as well. A strong reason why I will like to write this post, it will provide newbies with the knowledge to understand what they will have to look out for before making any investment decision.
At a time like this, some people are claiming to be cryptocurrency experts and they are advising people to make certain investment choices with the promise that it will turn them into millionaires and billionaires over the night. Extreme care must be taken with issues like this, and knowledge has to be obtained in the appropriate way.
Read the whitepaper.
Every project on this crypto space definitely has a white paper and since you have the ability to read and assimilate, it will be very wrong for you to base your knowledge on what other people have to say instead of reading the intentions of the project which can be found on the whitepaper.
Understand the market capitalization.
Do not just take the price of a coin to be all that is there to know about investing in cryptocurrency, the future prospect of those coin has more to say than the current price, carefully understand the available value of the coin that is in circulation and regularly bear in mind that there might also be cases of price inflation from time to time.
Check out the trading volume of the coin.
Understand how much volume/trading capacity that the coin has, look out for coins that have high trading volumes because they are the ones that are better for investment. In some cases, some coins with low trading volumes have yielded good investment returns but that is on rare cases only, it is better to look out for those investment options with high trading volumes.
The reputation of team members.
Before making any investment at all, it will be safe for you to check out those who are behind the game their past history and what they really stand for. Some scammers dupe people of their investment funds and then come up with the lie that there was a problem, then they go under the raider for some time only for them to come back again with a different name to dupe people of their funds again, it is extremely important to study their previous engagement of team members in order not to fall prey to their schemes.
Conclusion.
Please note that I am not an expert and I am also not a financial adviser so please always make your own research and enjoy the rest of the day.
