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Things to check while buying Cryptocurrencies

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Things to check while buying Cryptocurrencies

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For new investors, investing in digital assets has become much easier than it was 2017. But there are still a few crucial factors investors should consider before actually buying cryptocurrency.

Technology

The most important thing is the project’s proposed (technical) solution to a real and relevant problem. It makes no difference if it’s something new or a better application of existing tech, when the problem they’re trying to solve doesn’t need solving, there’s a big chance the project will fail or is set up to raise a quick buck. The technology behind a cryptocurrency plays a very big role. Decentralised currencies are resistant to censorship but even more so, it is nearly impossible to just shut them down.

Roadmap

If the roadmap states that a mainnet will be delivered within a few months, that would be great. When dealing with cryptocurrencies, white papers explain the purpose and technology. Checkout in whitepaper how it is different from other cryptocurrency and what problem they are trying to solve.

Funds raised by the currency and allocation of Tokens

Things to look at are the amount of tokens they are going to bring out. It’s a difficult factor, but it might give you an idea if they’re realistic about the project or just want to make a lot of money. Token supply is a ‘must-check’. You need to understand this metric to work out what the total market cap of the tokens is (multiple token supply by average traded price).

Team and Partnership

The people behind the project should be easy to verify. Check their Linkedin, online profiles, company profiles, any addresses you find, advisors, partnerships etc. Check their Socialmedia channels ask them questions check how active they are.

Right price

You must avoid the noise and hype of a token while selecting a cryptocurrency. while buying checkout if token is not pumped up too much in recent weeks. U must check in which top exchanges a token has been listed.

Posted Using LeoFinance