Cryptocurrencies have hit the world by storm and created a new investment front that is yet to be exploited. However, these have presented a wide range of projects with each having a unique product to invest in. choosing the right project to invest in has proved to be tricky given the volatile and unpredictable nature of the digital money markets.
Getting hold of the right project to invest in can be mind boggling for the starter cryptocurrency investor. Making the final decision calls for due diligence and this write-up aims at increasing your chances of landing a high profile crypto project to invest in and shun the market hype and scams.
For the beginner investor, it is good to separate the two types of cryptocurrencies before staking on any of them. You can choose the business or currency option of digital coin to invest in. The business type of virtual currency is designed to disrupt the existing market riding on the blockchain technology in a decentralized environment.
The business coin type in the market seeks to offer an alternative to fiat or traditional currency. This enables the holder to buy goods and services or a value store and older coins like Litecoin, Monero and Dash fall in this category. Most of them are coins and not tokens making them a faster payment option. Here are some cryptocurrency investment tips that will act as a winning guide.
Future looking Business Model
Investing in the virtual currencies is all about profits that are not driven by hype around the project but the underlying infrastructure. The business model should be investor profit centric and not media hyped. A good investment outfit should have a functional product or a real world problem it seeks to solve.
The Real Coin or Token Usability
The digital asset usability should be your top priority. You do not have to be moved by the Fear of Missing out (FoMo) to stake on any digital coin. It is your hard earned money and you need to put it where you can put it into active usage since this is the only way it will gain value for profits. The coin “spent” levels determines the viability of the project.
Route to the Market and User Accessibility
The project coin or token visibility in the market and its route to the market well defined. The coin should accessible to the global user base through high profile exchanges. Any virtual currency with a global reach and appeal is bound to be successful and a good enabler to trade or transfer value to other holders.
Team behind the Project
The team behind the coin should be well versed with the target market needs and should be able to address their needs promptly. The platform you choose should be able to connect with the user community and make them part of the decision making arm for it to remain relevant in the market.
Pre-mined Coins versus Allocated Coins
It is important to be specific on the type of coin to invest in. Pre-mined coins are better than allocated ones since they ride on an independent ecosystem while allocated tokens ride on other existing blockchains and unless they transition into mineable coins, their stability is not guaranteed.
However, a simple background check on your investment cryptocurrency should be your first step before venturing in to the digital money market space. Being a starter crypto investor should not scare you away and a simple trading calculator will go a long way in helping you make the right decision.
Bio———————-
Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at TenkoFX. His Educational background in Business Administration and Economics has given him a broad base from which to approach Forex and cryptocurrency topics.
