5 tips that can be used by a beginner crypto investor
People who bought Ethereum just a year ago, when one ether was worth $ 10, was lucky because their investments for the year grew 100-fold, and now they are probably no longer worried about the financial side of almost any issue. About bitcoin and not worth talking, though, especially those who for some reason bought it in 2016 or earlier. The main task of investors who decided to enter the crypto-currency market today is to find the “second Ethereum”, and be able to multiply their own, even a small, initial sum.
About 8 months ago, during the ICO boom, many succeeded, because since then several dozen coins have shown excellent growth, and have also grown by 10, 20 or even 30 times, multiplying investing investments and making them financially sound people. Investors are often not greedy and share their experience with newcomers, who have eyes filled with foreboding of easy money. So, what should I look for when choosing a project for investment.
It seems that this is the simplest advice, and it lies on the surface. Chances for a coin that costs less than $ 1, multiply many times more than a coin, which costs several hundred or even thousands of dollars. Here it is important for an investor to diversify risks and buy a few cheap coins, allocating funds to such images that a good takeoff of at least one of them will cover unsuccessful investments in all others. The main thing is not to get confused in coins, so investors advise not to inflate their portfolio to 20 coins, forgetting which of the projects, what it is and what it promises. For the first time, there will be enough and 5 projects.
Features of use
It is unthinkable to buy a few coins on the basis of what logo you like, of course, you can not. And here the skill of reading in English is very useful. Every company that deals with the creation or has already created its own cryptocurrency, offers something. Some paid calls on the blockchain based on smart contracts, others are engaged in artificial intelligence – dozens of projects appear daily, but not all of them can at least keep their cost claimed by the ICO. Therefore, carefully examine the proposals of the company, think about whether there is a rational grain in them, and on this basis decide on the investment in the project.
The popularity of cryptocurrency
In other words, how often have you heard about a particular cryptocurrency and on what resources? Excellent places to learn about the expected ICO or promising coins are forums and different sites devoted to crypto-currencies. Register here and start listening to people, probing the ground and comparing your own thoughts with the thoughts of other interested people. Of course, this information needs to be filtered very well.
It is important to look at people who have worked for the project if they include Vitalik Buterin and several people from Microsoft, then the project is very likely to be very good, and your assets invested in it can grow. But if a group of unknown programmers from Pakistan has created a cryptocurrency, or even worse, anonymous, then you hardly need to invest your money in it.
Dynamics of stock charts
The CoinMarketCap resource is a universally recognized source of information on prices and capitalization of existing crypto-currencies. This tab should be fixed in the browser of each crypto-investor. Pay attention to how smoothly the price schedule of this or that coin changes. The most attractive is the crypto-currencies, the charts of which grew smoothly and more or less slowly, as strong jumps indicate that the manipulators with the Pump & Dump strategy were engaged in the price. And there is no real demand for it.
Investing in crypto-currencies is a high-risk enterprise, so use for these funds such amounts of money that you will comfortably lose. Many analysts with loud names are engaged in forecasting the market, and the number of opinions that promise prosperity to the crypto-currencies is roughly equal to the number of opinions that promise imminent and early collapse.