Out of Hundreds or Thousands, What Crypto Should You Choose?
There are things in life worth investing and gambling. Trading can be sometimes be either. Are gonna be an investor, or a gambler?
image from pixabay
We saw what happened in the past with some people. Not all of them who ventured this crypto ride was able to get a yacht out of it. Some literally became a beggar after couple of investment mistakes. We don't want that to happen to us do we?
Now the important question in cryptoworld next to "What's gonna happen next" is "What coin should I buy?". It makes a perfect sense to ask it to ourselves since the market is full of shitcoins(coins with no value and nearly scam). This topic I think is very subjective since everyone has his different opinion about certain things but I consider couple of things before buying a coin.
Here are some that I would love to share with you:
1. Ask Who!
Before buying anything in this world, we should be responsible enough to know where do things come from. For example if you buy an expensive item in a store, wouldn't you ask first at least where it came from or who made it? If you would pay thousands of dollars to a trash bag with no value, then who's fault it is?
In case of cryptocurrency, be sure to research first about the developer or the team behind the coin you're about to buy. At least, be sure to know the history of the people who's on it if they have some fishy backgrounds. You don't want to invest your hard earned dollars with Scammers do you? Read reviews about what other people think about these guys and decide if they're trustworthy enough that they will realize their plans in the future!
2. Ask What!
Before entering the "Gate of No Return", research at least what are the plans behind the coin you're about to buy. Is it just like a virtual token? Does it have a real value in the real world? Are they planning to make as a private currency somewhere? Can it be used to pay bills or buy a house? This is very commonly said but true; Always do your own research!
Everything must have purpose in order for it to be valuable. If gold cannot be used for display or other stupid but famous things, then what will be the worth? Anything can worth a fortune depending it its purpose. How much is the underwear of Michael Jackson? I doubt if you can buy it with $1.00 only.
Commonly, if the purpose of the coin is as ambitious as flying over the outer space then there's a chance it would have a very high value. Of course it should be fueled by the interest of the investors and their desire to profit. If there's no desire to profit, then there's no reason to buy a coin at all. The exemption is of course unless you want to burn your money for some stupid reasons.
3. Ask When!
If a company would tell you "Hey you can get an ROI of 300% in 50 years", would you buy? I'm pretty sure for myself I would not because who in the world would wait for that long to get a return of only 300%! Let's face it, 300% profit is huge but if divided in years, you'll see the real number even clearer.
Of course that scenario is just theoretical. The point is, are you gonna wait for too long to get less profit?All cryptocoins has a chance to double its value in a year or two but some can even triple it or more in just months or less. That would depend in a lot of factor including some PR. A good press release could impact the price of a coin and a single bad news could totally ruin it.
This is Just Another Tip:
Some cryptocurrency like Doge, Ethereum, Waves, and Litecoin are used as a market in many exchanges. I guess it would be smart to take advantage of it now! A crypto coin used as a market gives quite a good reason of security and stability isn't it?