Join 91,629 users already on read.cash

What Coin do I buy?

1 6
Avatar for MikeZillo
Written by   7
4 months ago

In almost all social network groups, the almost obvious question stands out: when do I buy cryptocurrencies and which ones?

The question posed in these terms already denounces a propensity to use a portion of funds to purchase more than one currency and this could be seen as a sort of basket diversification.

A good start!

Apparently we could find ourselves in front of a person who does not want to get rich in 2 days, but who is very clear that diversification can lead to compensation; of volatility, of course, but this will have to be explained to him by us.

Suddenly the first answer that could come to the mouth could be buy an altcoin and wait for it to gain value.

Nothing more wrong!

An investor aware of what he is doing, regardless of the investment amount, wants to know everything about the asset he is going to invest money on.

Before proceeding with the analysis of the demand, a recommendation for everyone, especially for budding investors: Commit only and only the money you are willing to lose; to be clear the ones you would have destined to play roulette. Or part of them.

Let's say we want to commit $ 100 on a coin that teases us with its name and has a symbol that inspires confidence; this is simply not enough, in fact the very first thing to do is to enter the site of this altcoin and eagerly search for its White Paper (I'll explain what it is here); once found, it is necessary to analyze 2 fundamental points:

  • What problem does the coin solve?

  • Is the blockchain really used?

What problem it sets out to solve

Behind each crypto currency there is a company that aims to solve, through its token, a financial, commercial, traceability problem. Based on how he sets out the problem to be solved and the solutions he intends to apply, it is possible to get an idea of ​​the solidity of the project.

In some cases, due to the speculation of traders for quick profits, there are exponential growths of some crypto currencies, but not having a solid project behind them, the volatility is very high and the risk is very high, so it is preferable not to buy them.

The blockchain is really used

It often happens that in order to appear more credible, many projects show off the use of the blockchain; first of all it is necessary to see if the blockchain, despite being proprietary, has all the characteristics to be public. It would be better if it exploited a public and already known one as it could be Ethereum, which despite the very high fees, has a certain flexibility due to the use of smart contracts.

Another very important aspect is how, at a company level, they use it and, in particular, if it is actually used to solve the problem they have set themselves the goal of solving.

After this first research we already have a certain amount of data that can make us decide whether it is worth it or not to commit money.

But let's proceed

Exchange volumes

Let's assume that the verification of the project has been successful and we are almost sure that it can have results; now all that remains is to check what the market thinks of this project, well let's open the exchange where this currency is traded and start looking at the liquidity, if it is high enough we can think with right reason that investors are really interested, so they will be positive also the volumes of sales and purchases.

Exchange

As the project takes shape and the roadmap respected, the coin can also receive support from more than one exchange, so it can be traded on multiple platforms and this is a good sign.

Sentiment

How it is used in trading, to support technical analysis and refine fundamental analysis.

Sentiment, that is what people write on social media, is a good thermometer to know if a project is valid and promising.

The Team

How much experienced is the team? How much is their proficiency in the field they are deepening into? Does they really exist?

Do some research on the internet to know what the insiders think of this project, do not stop at the first positive information: some writers can be corrupted!

Continue to search and mediate the results you find, because some will find only strengths, others only defects, but by mediating them you can have your own point of view of the project.

A very important thing, however, is to have read and understood the White paper well: in this case you will immediately understand who is telling lies and who has understood the project well.

Although it may be inadequate or completely inapplicable; you must have your own thoughts on the project otherwise your critical spirit could be influenced by what you read.

2
$ 0.00
Avatar for MikeZillo
Written by   7
4 months ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

Currently the dip is the best time and it is a great opportunity for those who wants to invest in AWC token. With confidence, I will recommend buying AWC token now before it escalate higher. More info concerning AWC - https://atomicwallet.io/token

$ 0.00
2 months ago