Life is a constantly spinning orb with an unknown stop spot, and as such obsolete ideas and thoughts are being replaced with more modern information.
Hence the need to always stay informed with the trends and times. Catching up with the times gives you better leverage and advantage than your peers who are uninformed. Information keeps you one step ahead of the crowd.
Information is the most important asset you can bring to your personal finance. Same can be said for your business, career and investments (Fiats or Crypto).
When you are informed you have better chances of success in every area of your life--you have better mastery of your day to day activities as it relates to your business, career, profession, finances and investments.
Information gets you equipped with insights and leverage gives you better control of your personal finances.
It's easy to spot a big whale in the ocean, but it's difficult to spot those little blue chip piranhas that could likely bite through the resistance on the charts to a higher wave.
Oh my God, i wish i had better knowledge back then when Bitcoin just springed up, i would have had a tone load of 6 digit fiat profits. And i bet a lot of people still have similar thoughts as mine.
Well the good news is that with the expansion of the blockchain and new token ICO-ing everyday, it's inevitable for more cryptocurrency to follow in the same footsteps.
So how do you spot the next big whale?
Like me, i guess you're also looking for the next token that will go explosive on the charts?
That been said, i guess the next question is what are those important or key information we need to trigger our better choices of crypto to buy.
Price Is Pivotal
A crucial element to keep at heart when scanning for the next whale is the price of the token. For an average investor who doesn't have a great deal of money to put into the cryptocurrency eco-decentralized space, low-priced currencies may offer the best bang for your wallet.
Let's imagine you bought a tone load of a crypto token for less fiat currency, and on your exit it's fiat value had tripled it's initial face value. That will definitely be spot on good ROI right--let's suppose back then when $BCH was at a dollar per unit, you bought a thousand dollar worth of it; at today's prices that money could probably buy you an early retirement and a resort on some carribean island oceanfront holiday rental apartment. The ability to diversify with low-priced coins should not be overlooked.
The white paper of the cryptocurrency
Profit aside, does the cryptocurrency identify with a social problem, better still does it play well with a practical real life application and does it have the potential to solve a real life simulation revolving around a social cause.
Let's just forget for a second that Bitcoin, it's fork derivatives, altcoins and stable coins offer us a better investment (offen due to volatility) than our local traditional banks, what else do you believe your favorite green coins offer? Do they offer outstanding use cases or utility? Does it help in improving the blockchain technology, smart contracts scaling and blockchain operability?
If you look back as at when Bitcoin came around its purpose then was that it offered leverage to the early investors to hedge their funds, and it's still the same vehicle that sped it to the height it's currently at and is still heading to.
In my opinion (i stand to be corrected) was basically a kick back to create a wallstreet version probably based off from political struggle to stay in competition with its Asian partners. However, the most visible reason was probably to boost scaling, utility and operability flaws in the then blockchain development phrase. Which i think $DOT has a better reach to the finishing line at the moment and $ADA fast on its tail.
When investing in any cryptocurrency it is crucial to identify the core features of a project that differentiate it from every other coins.
Make sure the cryptocurrency or token has an actual use case. If it’s just as a store of value, Bitcoin, $TRX, $DOGE and $BCH tend to do that well and there are unlimited other coins (sh!t coins) that do the same thing. The more generic a token’s use case is, the less likely its going to stay relevant and succeed in the near future.
With that in mind...
Make sure the use case is logical. A coin can have unique use cases, but not everything has to be decentralized and be done on the blockchain. I do tend to feel like most of the third generation coins and newly established ICO-ed outfits have more of generic use cases rather than unique and pivotal use cases, a lot of such use social media and cloud mining as their fronts.
Trying to find blue chipped coins deemed worthy for mass adoption in the future requires digging deep and going through their white papers, profit index aside does the purpose excite you, does it speak to you, is it something that resonates with you? If it does none of the aforementioned purpose ditch it.
The difference between a gambler and an investor is that gamblers just want to renovate and flip (or just want to short a token for the gains and make entries again when it dips), while investors educate themselves about their coin of choice--they go in for the long ride, mind you this is not a case of diversifying your portfolio, pray and hold for the long term. Investors are in it more for the cash flow and passive income.
When push comes to shove or when sh!t hits the fan and the bulls refuse to dance with you, can you sit with the bears? Bearing in mind the crypto coin of your choice, would you have the patience to ride out the storm with it?
Does it have a road map outlining key development phrases.
Another key element you should most definitely take a look into is, does the coin have a well structured road map designed with its development phrases. And has the coin been able to fully achieve it's previous stages as stated?
Supply is a factor
Most cryptocurrencies have a pre-determined maximum supply. When that maximum is reached, typically through mining efforts, no new tokens will be produced.
If interest maintains while the supply is fixed, the price could go up. Be sure to consider the total supply and the current circulation of any cryptocurrency before you invest.
Price and volume
Up-to-date and real time information about cryptocurrency trading is easily available online. Cryptocurrencies with constantly increasing volumes and price gains have better prospects for massive adoption. Of course, there is no guarantee that this momentum will maintain, but it is nonetheless a useful way of seeing which cryptocurrencies have the most investor's interest for the time being.
However, take to mind that investing in cryptocurrencies is risky, and you have to do your own thorough research before picking your piranha (laughs) i mean your blue chip coin. And above all, only invest money you can afford to lose.
There are also better ways to use your information as leverage, these could be in the tune of generating more passive income and cash flow through mining, however mining (proof of work) is gradually becoming obsolete and been replaced with proof of stake
Staking seems to have gained more adoption as it presents easier understanding of its working mechanics and doesn't require the use of heavy machines and it evades the problems of computer overheating.
I believe the concept of staking is pretty much explanatory, well for the case of those who have little or no idea about staking let me expand on it. As traditional banking offers fixed deposits where investors are rewarded interest as per a specified period like for example 30 days, 180 days or 364 days, same is experienced with crypto staking. But the underlining difference is that it provides higher APY % returns and has more flexibility with the safe lock period. And another awesome feature about staking is that even with your coins locked into a specified period you can still withdraw and it won't affect you getting the minted block rewards--the only downside is that the volume of the rewards will be reduced.
However when it comes to higher APY % return offers, yield farming takes the cake. Yield farming has a lot of similarities with staking but has its distinctive features.
Have you traded forex, ETFs or stocks before? Yield farming sorta have the same features with the above mentioned. With yield farming you invest a cryptocurrency pair, for the course of this illustration let's assume you invest $BCH/$BNB for a safe lock period you accrue price gain for one cryptocurrency over the other when you liquidate your pool.
Keep educating yourself, keep learning and keep improving your leverage.
