Today, there is a shift in the financial sector, and a big part of that shift can be creditedto cryptos. They have given the masses a chance to create their own safe space without the influence of world powers.
One reason cryptos are here to stay is because of their use cases. Please note that we don’t speak for all projects. You only have to look at the way ETH and BTC were used to provide aid for Ukrainians to see its use case in action. Click here to learn more about BTC.
It is likely that you have a friend or family member who has been profitable in their crypto ventures. With all the hype surrounding this space, it is only natural that you desire to be a part of it. After all, we all want to make a profit. But it’s not enough to simply pick a random project and hop on it.
In this article, we will be sharing useful information you should know before investing in any project. Be sure to read carefully so you don’t miss any details.
Have I Researched Adequately on the Project?
If you’re a newbie, or just moved from trading currencies and are used to observing only charts, it is easy to make this mistake. With crypto projects, it’s not enough to just perform technical analysis and wait for a breakout or whatever sign you use to validate a trade.
If you use the method above, most likely, you’d end up trading shitcoins or rug pull coins. Simply put, you would be investing in a coin with no future. This might be hard to believe if you’re used to analysing charts, but with crypto, we look at information like; use cases, market cap, burn rate, etc. Each of the factors mentioned above would give you an insight into the long-term plans of the project. You may visit sites like coinmarketcap.com and coingecko.com for additional useful resources about crypto.
Another thing you shouldn’t neglect is the possible use of the project. A project without real-world value is bound to fail. For example, some cryptocurrencies allow you to transact at cheaper fees while some allow you to earn money, and so on. You can head to PKT Cash for more information.
The best place to get information about use cases is in the project’s white paper. The white paper consists of the plans the coin intends to use to become profitable. If you come across a whitepaper with very little information as to the project’s future, that is a red flag.
Understand Your Reason for Investing
If you’ve found a project worth investing in, that’s great. However, before doing so, it is necessary you understand your reasons for investing. This is important because if your actions don’t match your motive, you would most likely not get the kind of results you want. What do we mean by this?
People invest for so many reasons, but let’s assume yours is to get profit fast. With this in mind, you won’t hold long-term trades, but instead buy coins short-term with the intention of selling slightly higher. On the other hand, let’s say you are looking for a project to grow with. Investing with such a mindset means you don’t expect to see returns on your investment for at least a year.
From this example, it is easy to see how a short-term investor who needs money fast could be in trouble if they buy coins that don’t move quickly. Most likely, they would sell their assets without collecting any profit.
Join the Projects’ Community
Humans were not designed to function alone; we achieve more when there is cooperation. This cooperation is even more necessary when your finances are at stake. This is one major reason why every crypto project out there has a community. Its purpose is to connect you with thousands of individuals who also have an interest in the coin.
Do not take this for granted. By joining the community, you’d get in touch with other members and understand their views on the project. They could even be more knowledgeable about it than you, thus teaching you a thing or two. You can also join general crypto groups, here you have access to updates concerning other coins. This way you are not left behind. Visit this link https://www.youtube.com/ to learn more about finding profitable projects.
Know the Right Time to Enter a Market
Timing is key in the crypto and financial space at large. You must know the right time to enter the market. For instance, a coin has had a 200X movement (its price multiplied 200 times over in the last 24hours) do you think you should buy?
If you said yes, you’d most likely find yourself at a loss at the end of the day. Why? Well, because you bought a coin that has already broken out, which means you’d be at the wrong end of the gun when it dips. This is where timing comes in, if you kept this in mind, you would have waited for the price to drop before buying it.
Please note that this is not financial advice, we are merely painting a picture here. The situations would differ, and it is up to you to figure out the best time to invest.
Final Thoughts
The crypto space is growing and has already made a lot of people millionaires. This doesn’t mean you should “jump the gun”, there are always new opportunities, and you just need to be strategic in your approach. We hope that the tips provided in this article would help you make a more informed decision in your search for a good investment prospect.
Also Read: Doug Wright Holland And Knight
