How do you know in which alt coins to invest ( A basic intro)

CryptoCurrency has been achieving new heights each day, though we do witness a crash once or twice in a month but the recovery is fast.There are a lot of new coins being list each day, People are investing in these coins , so that they can shoot big and earn high amount of returns, but most of the time they end up losing their money. Crypotcurrency still could be va very good investment this year, but one should still cautious before. The First thing before investing you should do is , who is backing it , what are there goals, what are they trying acheive.

Who are the Backers

First of all having good backers and investors are important, this will tell us crypto can trusted. It also a means a lot smart people will be interested in that crypto too, let's explain it in simple way, There is a crypto backed by Tesla or Microsoft and another is backed by some random foundation, about which nothing is known or who are the people in that foundation, so obviously the first one would have good prospective.

What is the goal and roadMap

This is a very important factor, that can play the role how the crypto will perform in the future, A good example for this Ethereum, There goal was to become home to digital economy, global payments and applications. They provided tools for the development for Decentralized Apps.So always check for the roadmap and goal.

Are the Foundation or the Team behind it transparent

Now, this is what will save you from the frauds most of the transparent, All good crypto provide good transparency about how there blockchain works.There is a lot crypto out there , where some unknown foundation behind the crypto, will have some stake (15% -20%) of coins on that crypto, but they won't be mentioning anything who are the people involved in these foundation.

Is the power decentralized and autonomous

Now this is another factor to be vary of, if the power is not autonomous and only limited to certain groups of people a lot of things can go wrong, i.e. they can literally control the prices of coin and achieve profits by doing so.

How long has it been

Even coins with good backers and with great team, will take some time to achieve something, you cannot expect the price to shoot after a few months.A crypto requires good amount of time to develop, it needs to develop a community first, get accepted by people in blockchain community.

Check what experts say about it

You can always find and ask from good experts, who been working in the industry since the inception of Bitcoin.The information you get from them will always be, You can easily find these people on youtube, reddit and discord.

Investing in new coins is not a bad thing,It's just that you will need to be very cautious and do research before you start investing in them and have to be patient to get some.

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