5 Tips For Successful Cryptocurrency Investment
Tips For Successful Cryptocurrency Investment
For people always battling with choices between which cryptocurrency to choose for an investment, the problem is real. Cryptocurrencies and their entire concept in very different. Every day there comes something new to learn about them. With the endless sea of knowledge, one may feel like they are drowning. Specially when there are so many things to keep a tab on. Cryptocurrency investment in the main concern here.
There are hundreds of coins listed on different cryptocurrency exchanges and by the time you finish reading this post, there will be more. However, not many of them gain traction, not to mention surviving the next five years.
If you have decided that you want to jump into this rapidly growing market, then there are some very important things that you need to understand.
In this guide, you will learn how to choose the best cryptocurrency investment for you.
Cryptocurrencies Other Than Bitcoin
Cryptocurrency is a very fast market. This means that at one moment, your stock can have a value of -20% and after a certain amount of time it’s +20%.
That being said, one must note that Bitcoin is not the only promising cryptocurrency investment in the cryptocurrency market. You must always be on a look out on cryptocurrencies that are new, but promising, have a stable growth and are secure to invest in, because that gives you the opportunity to buy cheap. The challenge is to buy just before the trend is going back up. Simple!
Also, stay updated with latest crypto news on KryptoMoney.com
Know More About ICO’s
An Initial Coin Offering, also commonly referred to as an ICO, is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s somewhat similar to an Initial Public Offering (IPO) in which investors purchase shares of a company.
Participating in ICOs can be a lucrative trading strategy. If you invested in the NEO crowdsale (at the time the project was called AntShares), your return on cryptocurrency investment (ROI) would be ~160,000% currently. Populous, about 5,000%. OmiseGo, around 4,000%.
However, it is important to to be very careful which ICO tokens to buy. To evaluate it’s true value, one must have a close looks at the
- Crypto Advisors: These people keep a regular check on the ICO’s and are in most cases, successfully predicting if the ICO would be a winner or not.
- ICO’s aim: The project’s white paper should clearly define what problem the project is aiming to solve and how the cryptocurrency solves it.
- Token Distribution: The team should be distributing over fifty percent of the tokens to crowdsale participants if not much, much more.
Have a Look At Lesser Famous Exchanges
Sometimes all that shines ain’t gold. Sometimes, really famous cryptocurrency exchanges are only hyped by their brand name where you may not always feel satisfied as a trader.
Beyond the short post-ICO period, you still have time to invest in a coin before major exchanges begin to list it. Cryptopia and decentralized exchanges such as IDEX are goldmines for these types of coins. The same research strategies mentioned above apply to coins in this category as well.
Timing is Everything
Crypto users who have swirled through the Bitcoin wave, which started from December 2017, coming down to April 2018, have known about the value of timing in the cryptocurrency market first hand.
One must keep a tab cryptocurrency to invest in is to choose coins through project roadmaps and event calendars. This is because the price of cryptocurrency tends to rise after an important partnership announcement or development milestone.
With that information, you can sometimes buy into a project early and ride the wave up following the announcement. This has some potential downsides, though. Correct timing is incredibly difficult to accomplish
Always Keep An Eye Open
With all of the strategies mentioned above, it shouldn’t be a surprise if you are advised to always keep an eye on the new cryptocurrency investment opportunities that occur every day when you’re actively looking for them and discarding the ones that no longer serve the purpose of your cryptocurrency investment.
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Any investment is not a joke, specially cryptocurrency investment. One right pick can make you an overnight millionaire and one wrong pick may get you end up loosing all your money. So always “Do Your Own Research (DYOR)” before investing in any cryptocurrency or ICO project. Never let “Fear of Missing Out (FOMO)” kick in your mind, once the price of your selected crypto starts rising. Always do the research as why the price is rising. Maybe it was due to a new announcement. Evaluate, weather the news will have a long term impact or short term before getting into it. If the price rising is purely a speculation, stay out of it. You might get DUMPED hard!!!ß
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Rohit Kukreja is a Commerce graduate with Financial Markets expertise involving Stocks, Forex, Futures & Options Market and now Bitcoins & Cryptocurrency Markets. Blockchain Enthusiast but not a techie, Rohit is an active member of various Blockchain & Crypto communities all over India.