Cryptocurrencies have been a widely spoken topic of discussion lately. Aside from multi-level marketing, cryptocurrencies can make you a king of the world or a pauper in a matter of a few days. Millions of people, with want of making quick bucks, have either lost their way in choosing the right crypto to invest. Some other lucky ones have got in and got out without losing too much.
So, what is the best strategy when it comes to selecting a cryptocurrency investment? How to opt for a currency which is safe and secure? Well, you will get to know all this and much more in our guide below on buying cryptocurrency.
Well… the reason you are still reading this article means that you are interested in investing in a cryptocurrency or you might have already invested before without much luck. To be precise, these virtual currencies promise a whole lot of things to large and small investors alike. They swear to replace world currencies like USD and Euro shortly. They pose as becoming a free and hard world currency.
All in all, there are three excellent reasons to invest in virtual currency:
- You may want to keep your money value steady even if the dollar or your home currency falls. It is quite a possibility after seeing the economic meltdowns in Europe;
- If you look at the world as a big family and support the free movement of currencies in and out;
- Lastly, you adore and fully support the technology behind cryptocurrency.
And, here is a wrong reason to invest in a cryptocurrency. You fall victim to it. Do not investigate properly but fall in the trap of a good extempore since you do not understand these currencies at all.
That’s not what you want to do. So, learn before you even think of investing in one.
In just one year, between 2016-2017, Bitcoin went up to $10,000 from a mere $750. So, an investor got more than ten times its base value in 365 days only!
Isn’t that crazy?
Well, with these astounding figures, the grapevine was set in motion. It prompted more and more investors to jump into the ocean of Bitcoin and other cryptocurrencies.
Eventually, it happened, the market slumped, and with Bitcoin going down, all other currencies too couldn’t hold on to the volatile market. Thus, huge gains became enormous losses for many.
Our guide today will help to make you an intelligent investor. So, let us start with our first lesson to crypto investment.
Take a calculated risk: Due to the volatility of cryptocurrencies market, you should be open and robust enough to take risks. Remember, these are nowhere close to regular investments. Your country can put a blanket ban on selling and buying of cryptocurrency. The latest example is India. If that’s the situation you are in, then liquidating your crypto asset will not be an option. In short, invest the amount that you can afford and still be able to manage your day-to-day expenses. Do not be penniless without cryptocurrency.
Look for alternatives: You must not forget that there are other cryptocurrencies out there. So, if Bitcoin is out of your reach, invest in something cheaper but with good or better future than Bitcoin. Although Bitcoin is still the most dominant virtual currency, it’s market share has dropped down to 50% from a whopping 90% in 2017. The reasons are many, like performance issues, creation of Bitcoin cash and its community split, etc.
Hence, do not stay away from looking out for more affordable and flexible options like the latest cryptocurrency in the market called Mainston.
Read the whitepaper: The first step you need to take is to read the whitepaper of the cryptocurrencies that you have shortlisted. While I understand, reading long PDFs is not what you would find exciting, but it is essential for the sake of your valuable assets. Here are two significant benefits that a whitepaper can help you understand. First and foremost, you will be more learned and know about the coin you are thinking of investing. Second, if a white paper crafted is weak, it is a clear sign that the coin does not hold a bright future. If the team behind the coin cannot explain the value of the currency, it is not worthy of being a choice for you. After all, you need a durable product in the end.
Now, after you have jotted down the cryptos with a decent whitepaper, based on the below points make some decisions:
Is the project bringing any value?
A reliable crypto coin will bring some value to the ecosystem. It is imperative in terms of maintaining a long term future. A good example is Ethereum. The sheer amount is brought in projects, increased its admirers all over the world so quickly. Besides, you should also look at the cryptocurrency’s ability to scale up, how secure your data is in it, and how flexible the coin is in the market.
The second and most crucial point is to find out if the project needs any token.
So, how to do that? Well, you ask yourself two fundamental questions:
- Is blockchain a criterion for this project?
- Does this project need tokens?
In case the response to any of the above questions is a ‘No’, then the cryptocurrency coin projects you are looking at for investment do not need tokens. What they are doing is a simple ICO to raise money.
Watch out for any signs of fraud: This point should help you raise a red flag. Reliable coins have a vision, a beautiful community to fall back on. However, unreliable ones have people who want to get rich quick. They lack imagination, future stability, or transparency. Well, we have a few tips to help you figure out some signs of fraud.
- The men/women behind the cryptocurrency – I am sure you all know, the success of a company largely depends on the top bosses. If the background of the person sitting at the top-level management is dubious, the company will not run for long. Look at one of the latest but secure cryptocurrency – Mainston. Backed by an excellent team, Mainston has trustworthy founders, known for their long-term vision and a no-nonsense attitude. At this hour, it is no less than a Bitcoin or an Ethereum. Instead, it promises you Bitcoin and Ethereum value at various stages of Mainston.
- Is the cryptocurrency promoting a pyramid scheme – Pyramid schemes are unreliable and illegal. These schemes, in the beginning, show you quick gains and profits with the recruitment of new members. However, in due course, it reaches a saturation point and a zero profit scenario. They are more infamously known as pyramid scams as they primarily promise payments for recruiting members instead of investments or products and services.
Now, you may also wonder if there is an excellent time to buy crypto coin?
Well, honestly, there isn’t. However, we advise not to jump into the crypto ocean during its peak or when it is entirely down, i.e., crashing. More like stock markets, it may seem to you!
The best time to buy a coin is either at its nascent stage, when it’s stable, or when at a low level.
In my experience, you cannot mark a day to buy crypto. There are times when the crypto value reaches the highest ever, and you may think it is its peak. However, it could merely be its beginning.
Many people delayed buying the Bitcoin when it cost $1000 thinking it is too expensive, but then history is witness to its growth. It never looked back.
So, sit back and pay heed to these two advises very carefully.
- First, never compare a crypto bubble to financial, stock market bubble. A 10% increase in stock market share will be its peak, but not in case of a coin. Even a 1000% increase may not be its peak rather just a start.
- Second, you must have some patience and take your time to watch the crypto market. Don’t only buy a coin since there was a dip in its value. Look for other better and newer options like Mainston.
- Third, avoid selling your cryptocurrency too early. Don’t make haste in buying and selling to become rich in a short time. The revolution might have just started.
To conclude, we would again urge you to do thorough research before laying your hands on any cryptocurrency. After all, your hard-earned money should not become difficult to get back. Do not be greedy and look for small gains but go slow and always go for long term resolutions.
Watch out for more eye-opening articles on cryptocurrency, its risk, and gains in days to come.
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