What Should You Look for When Investing in Cryptocurrency?
Investing in cryptocurrency can help you make money if you know how to choose the right project. Here are three essential things you should look for when investing in a crypto coin.
Read the whitepaper
Every single crypto coin out there has a whitepaper that explains what is their aim and how they plan to reach it. It’s super important to know the problem they want to solve, the solution they’ve come up with, the team behind the idea, and their roadmap. This way, you’ll be able to see which stage they’re in at the moment. All these aspects are basics that you should know before investing in a cryptocurrency.
For example, in our whitepaper you can read all about our BeFaster app, that combines blockchain with an active lifestyle, rewarding users with BeFaster Coins (BFCs) in order to encourage them to be healthy. We have dedicated entire chapters about our BeFaster Holder Coin (BFCH), a special investor token that can help you earn money. You’ll also find a lot of details about our project, the idea behind it, how it will be implemented, our token sale, market analysis, roadmap, our team, risks, and more.
Check the cryptocurrency’s market capitalization
Simply put, check the coin’s circulating supply and its price. Keep in mind that the current price is an indicator of perceived value, but not much else. The price shouldn’t be the only deciding factor behind the investment.
The future and technical potential are the relevant driving factors.
Check the developers’ activity
The truth is that anyone who has some coding skills can design their own cryptocurrency — unfortunately, that comes with plenty of scams. The vast majority of promising or successful coins are released by developers with experience in finance, management, law, and blockchain.
Think about it: in order to come up with a great idea behind cryptocurrency takes time and a lot of work. Therefore, there should be a visible activity of the team members.
Check the social presence of the project
It’s important that those who created the cryptocurrency you’re looking to invest in are willing to communicate with their audience.
If the developers genuinely believe in the product, they will answer questions, make videos talking about their idea, respond to comments, and be willing to help.
Look at social media, but don’t be fooled by the number of followers — focus on the conversation. This is a good way to find the community behind the coin and see if it has genuine support.
Any questions? Comment below! :)