Factors that play a significant role in Cryptocurrency Investing
The Crypto Market is growing big and we are having new investors join the train each and every day. Have you ever wondered what the Crypto Market will be like in 10 - 20 years to come? Who knows maybe it will be 10 times big as it is now, so there is still time to analyze the market and see which tokens have a great future and invest if you are certain about it.
I have been in the telegram groups of investors and I have discovered that almost 90% of investors care more about price skyrocketing. They give a blind eye to product development and they always ask questions like, when is Centralized Exchange listing? When is Marketing? Why is the price not Pumping? Why is Price dumping? When are you burning Tokens? They ask a lot so today I decided to answer some of their questions and I hope they will learn a few things.
When is Centralized Exchange Listing?
This is the most question asked by investors and no matter how hard you are working on the product to make it the best among other they will always ask this question. Being listed on Big Centralized Exchange like Binance, Coinbase or Crypto.com is great but if the project has no tangible product and use-case that token will just be pumped, dumped, and buried 6 feet under. Focus on Product development because that is the key to the success of that token. I have an example of HiFi Gaming Society updated Roadmap, check it out:
If you look closely you will see that this roadmap is lit and is a promising firework. They have been delivering and walking the talk considering that they are just 11 months old and they have covered so much groundwork. This token is listed on Decentralized exchanges only and not on Centralized Exchanges and they have always remained focused on creating the best gaming platform ever. Some gaming platforms are just selling ideas only and some 1 game only but this has so many games and they are not yet done building. On their roadmap, you will see that the Q2 and Q3 are going to be mind-blowing and will bring in the definition of HiFi. I invested so much in HiFi and I do not care about the Centralized Exchange Listing yet but their effort and progress are being made on creating a solid product that will sell like hotcakes.
When is Marketing?
If you start marketing an idea there are chances that the idea might be pumped and dumped if the product is just sound and not solid. Ofcourse, marketing is essential but do not forget that if the timing is poor then a lot of resources will be wasted in trying to market an idea only. So before marketing starts, a product should be in the making, and when it's already started or almost done then marketing starts so that the momentum will hold. Investors will always have faith in something that they see is already in development and no matter how long it delays they will always have faith and be willing to wait until marketing kicks off.
Why the Price is Pumping or Dumping?
Hahaha, this is the funniest question I always come across and you just wonder what is it with these people. People get excited when they see the price going up and when they see the price going down they will panic and ask "Why is the price dumping SIR". Well if the price is pumping it simply means people are buying and there is demand so the price will go up and when you see it sell then you should know that people are selling and taking their profits off the table. There are some cases where you will see the price falling and it might be because the roadmap is poor and no progress is being made and investors decide to dump the project.
When are you burning Tokens?
Yeah, I don't deny the fact that token burning matters most in the cryptocurrency investment decision. Too much supply will limit the price skyrocketing of a token because there is too much supply which means the demand will be low and the price will fall. So token burning will do magic in reducing the supply, but if the product is just sound then the burning will not do much. There are a lot of cryptocurrencies that have a supply of less than 1000 but you might see them falling like crazy because the use-case of that token will be close to nothing or zero.
After all the analysis I have come to realize that the product/use-case is the key and this will determine the future of cryptocurrency. I have some tokens that I invested in because they have a supply of 500 000 and now that investment is less than $1, I have lost so much money in those and I learned the hard way, now I focus on the solid project or sound project.