Keep These 13 Things in Mind Before Going to Invest in Digital Cryptocurrency Coins (Bitcoin, Ethereum, Dogecoin, etc..)?

Every part of the world is witnessing an increase in cryptocurrency investment. Almost everyone is curious about it, but many people don’t understand how it works and even fewer people are able to crack the code. While this may sound exciting from afar, digital currencies are very fast and volatile. Investors should be prepared not only for the uncertainty it brings, but also for the disadvantages of volatility during investment. So when the price of bitcoin, the world’s largest and oldest digital currency, soared and fell in a matter of weeks, it was all fun and no game.

So a question comes to everyone’s mind – “How do we know which token is the best to invest in?” Again, there is no definitive way to predict the future of cryptocurrency tokens but a Reddit user u/kemcpeak42 listed factors that everyone should take into account before investing.

After discussing it on Reddit, the user decided to post a list, saying that if you’re new to cryptocurrencies or investing in general, let yourself dive deeper into investing and the process of finding value in assets. Prepare to delve deeper into it to engage in.

User said, “Crypto is clearly a largely speculative market, and is still largely driven by hype. Some people didn’t even know whether a coin was good or bad from an investor’s point of view. User asked people to do their own research and not just rely on what others have done.”

User said that ultimately, fundamentals will determine the leader in this market. “When the speculation and hype go away and volatility subsides, and it becomes a mature market – how do you decide what to hold?” When it comes to doing his research on cryptocurrency tokens, the user suggests:

The first step is to read the white paper, followed by the patent and the website. The language used, the presentation and the information available there goes a long way in understanding more about the token. The next factor the user told is to look at the roadmap of the token and see who the participants are. “Back to the source of venture money”, the user continued, “see circulating/maximum supply”. The position of those already holding tokens can give you a clear picture of where they are in the money market right now and it also helps in evaluating the risks.

The next step is to look at the social and technical aspects of the token, and then of course, the presence and quality of the market. The last two steps involve tracking adoption and leadership. Finally the user said, “None of the factors highlighted in the post depend on the opinion of a stranger. All of them are readily and objectively available for your evaluation.”

Check out the user’s full post here :

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