Homework Task 6: How To Invest in Cryptocurrencies - A beginners Guide | lesson by @besticofinder

Hello everyone. I am very glad to be here again to learn from the seasoned crypto professors, I've learnt from professor @besticofinder this time where he lectured at length on how to invest in cryptocurrency. He gave a task at the end of the lecture and I will be attending to that now.

Investment into cryptocurrency doesn't come with choosing any coin at random and invest into it without having a proper knowledge about it therefore for a beginner or pro to invest in cryptocurrency, it is necessary to consider conducting fundamental analysis on a particular crypto of choice before deciding if it's good investment decision to make.

Some of the factors to consider when conducting the fundamental analysis are the project concept, the use of the crypto, competitors, response of the market, social reach and many other ones .

For this task, I will be using REEF (Reef finance) for my fundamental analysis because I'm thinking of investing in it.

REEF is a cryptocurrency on the number 116 on market capitalization as provided by coinmarketcap.com with a live market cap of $431,957,485 USD. REEF has a circulating supply of 11,268,898,338 REEF coins and a maximum supply of 20,000,000,000 REEF coins. REEF came into existence in the year 2020, powered by Polkadot and it was named a All-In-One DeFi (decentralized finance) platform. I read through REEF whitepaper and I found a few things that interests me that would be used to respond to the tasks given.

One of the first problem REEF comes to solve is the issue of DeFi, knowing well that decentralized finance is taking over everywhere in the crypto ecosystem but comes with a few shortcomings as users that wants to take advantage of DeFi has to interact with many DApps before they can explore all features of DeFi. REEF was invented to take care of that shortcoming as It comes as an All-In-One DeFi where all you need to explore on DeFi is being compiled to this single platform. Noting the shortcomings experienced by the users of DeFi earlier as they are to interact with many DApps to enjoy the benefits, REEF brings it to one platform as users can easily get transactions done in a single place and that made buying/selling, swapping/exchange or borrowing asset more easier.

So far so good , REEF has been able to gain ground as many users in the crypto ecosystem adopted it seeing it as a way to take care of the DeFi challenges as they can have it in a place to but, sell, exchange, borrow and do more. And users that they wants the convenience of whenever you want to do something that involves more than a single aspect you need to find a way to piece it together yourself, REEF works it out well as they can get all the DeFi features combined in a place. Another social reach factor is the availability of the REEF crypto currency on big exchanges like Binance, Huobi Global and others as this makes it for users to trade the crypto with other assets.

The founders of REEF made the invention from the problems and shortcomings that was noticed with DeFi as users often face the problems of interacting with numerous DApps before they can effectively carry out their desired transactions on DeFi and this problems were analysed and put up together by the founders to take care of the shortcomings having all DeFi in one place as seen in REEF.

Denko Mancheski, CEO and the co-founder of Reef Finance, has the vision of providing a solution to the stressful encounters faced by users and that have held back adoption of DeFi products as the shortcomings of DeFi is frustrating one for DeFi users or probably potential users that want to enjoy the full features of DeFi. REEF is perfectly compatible with smart contracts and this has been one of the advantages of REEF finance making the DeFi world a place for all.

In that space of operation, not much competitor are present and for the fact that the crypto can maintain a stand in the first 150 ranking of market capitalization shows a very bright future ahead of it. The All-In-One DeFi will be something tedious for competitors to break and this actually gave REEF finance a good space in the crypto ecosystem.

Some of the factors I'm comfortable with are the social reach, the project concept, the use and the market exchanges of REEF. I can see clearly from the project concept of REEF the challenges faced in the DeFi world and how the developers have come together to proffer a timely solution to take care of the shortcomings.

The availability of this crypto on many exchanges is another big factor as it allows many users to trade it against other asset pairs thereby making the project a more reliable one, so also the All-In-One DeFi will give it a last longing stay in the crypto ecosystem when users can easily carry out desired transactions in one place.

It is important to carry out proper fundamental analysis on a crypto asset before deciding to make an investment on it and by so doing it keeps one at the safer side. I appreciate the job done by professor @besticofinder and I see myself learning better from him and other crypto professors in the coming editions.