Still, you have to realize that this is each about the fundamentals, If you are wondering which cryptocurrency to invest in. Picking a cryptocurrency investment can be easy, you just have to do a little bit of exploration first.
So in this companion, I ’ll cover 5 easy ways to decide which cryptocurrency to invest in.
1. The Community.
A bit part of a cryptocurrency’s success is it’s following – so look out for cryptocurrencies with strong communities and loyal followers because that shows people have a genuine interest and belief in the cryptocurrency.
Still, going to forums and checking out the community on Reddit is a great way to start understanding the hype behind an altcoin and whether you should make an investment, If you ’re confused about the coins.
You ’ll also find on Reddit that some of the more delicate and specialized generalities are frequently broken down and explained simply in these forums.
2. The Technology.
A big part of a cryptocurrency’s success is the underlying technology. You have to understand how it’s going to perform against their challengers – and what makes the technology stand out from the crowd. Look out for the big developers – the cryptocurrencies that will fully disrupt their industry.
For example, let’s take CRD Network (CRD) - https://www.crdtoken.org/
CRD Network is delivering real world data OnChain, resulting in a Finance 2.0 ecosystem delivered via API endpoints to the oracles, dApps and end users directly. Now CRD Network is one of the best cryptocurrencies (technology wise) because of
- Smart contracts - this is a form of technology that facilitates the exchange of anything of value.
- CRD technology is designed to make it easy for inventors to integrate the blockchain with their own applications.
- has such an creative technology, it’s speedily become of the biggest cryptocurrencies in the world.
3. The White Paper.
Everytime a new cryptocurrency is released, they generally bring out a white paper too. This will outlines the purpose of the coin, it’s technology, how it works and it’s overall vision (I ’ll come onto that coming).
A white paper is one the best places to appraise the fundamentals of a coin – and you should never invest anything into it until you have read their white paper.
You might have to wade through a little technical jargon in the white paper, but do not let that put you off. It’s 100 worth reading because it’s such a heavy source of insight.
Plus the more white papers you read, the better you ’ll become at associating the long term winners.
A white paper can also tell you about the cryptocurrency’s professionalism and credibility – here’s some red flags to watch out for
- Is the cryptocurrency promising something unrealistic?
- Is the white paper ambitious in terms of its overall points?
- Are there spelling missteps? If there are further than a many, this is a big red flag! A company that can not invest the time into getting their white paper right likely is not serious about their future.
4. Pricing History.
Ever heard the saying “ The best predictor of future behavior is past behavior?” Of course, this is not always the case – especially with cryptocurrency. Still, pricing changes gives you a strong history of the coin and if it'll be a solid investment for the future.
- Are they volatile in value?
- When the market takes a big dip – which it regularly does – was the coin flexible?
- Are they priced at an all time-high? If they have hit an all time high, I ’d suggest staying it out until the cryptocurrency takes a dip.
Deciding the pricing record of a cryptocurrency could be a new conception to you. maximum people have no idea what they are looking at!
5. The Road Map.
When you ’re choosing which cryptocurrency to invest in, you should look for a coin with a solid road map and strong programs for evolution.
This is the key if you ’re looking for long term success.
Here’s many things to watch out for
- Clear timelines for the development of the coin. However, this could expose a lack of commitment for the development team, If there’s no clear timeline.
- When are they planning to release major updates?
- If the coin has limited number of coins in rotation, Still, then when is that limit hoped to be reached?
How To Use This Guide?
Before you choose which cryptocurrency to invest in, simply run through each of these 5 rules and make sure your possible investment ticks the boxes for each.
