Good day, everyone! Today we are going to talk about investing into crypto a little bit.
This relatively new direction for traders and investors emerged in 2009 since the creation of the first, and the most popular to this day cryptocurrency — Bitcoin. Although, to be more precise, at the very beginning of the existence of cryptocurrencies, no one treated them with a sufficient degree of seriousness, and therefore there was practically no talk about investing.
In most cases, people mined bitcoins just for fun, and many of them did that without attaching particular importance to it.
Which cryptocurrency should you invest into?
This issue, in fact, is the very cornerstone that determines the success or failure of an investor who decided to dip their toes into the cryptocurrency market. In lieu of the high risk level, it is practically impossible to give an unequivocal answer to this question. However, there is a number of general recommendations on this issue:
- Pay attention to the level of fame and promotion of a cryptocurrency in order not to inadvertently invest money in unknown coins that will be worthless today or tomorrow;
- Estimate the level of capitalization. In order to do that, you should multiply the amount of a cryptocurrency already released with its current value. Try not to invest into coins with a relatively low level of capitalization, as there is a possibility that it will not increase in the future (and this is fraught with a fall in the market value);
- Look at the level of liquidity of the selected cryptocurrency. You do not want to face the situation when it will be possible to turn your investments into real money only at a great cost;
- Pay attention to the stability of the growth rate. To do this, you should look at the price chart of the cryptocurrency in question on a large time scale (preferably from the moment of its creation).
- Familiarize yourself with the reputation of the developers, so as not to run into the project of another scam. When there are serious people behind the cryptocurrency who do not want to spoil their reputation, it can be considered as an object for investment (if all of the above points are taken into account).
The classic stock market has taught players to make investment portfolios, which include several areas for investment. For cryptocurrency, this means that you should not invest all your money into just one project, for example, Bitcoin, but it’s worth distributing it among the fastest growing cryptos.
Successful investments in the fast growing market of virtual currencies have brought huge profits to thousands of people. Anyone with proper skills can easily make good money in this market.
Here’s a friendly reminder for everyone reading this: if you want to expand your investment portfolio, you can easily do so on ChangeNOW, where we have more than 150 coins available for swapping at great rates and no account needed, easy as cake!
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