What to do when selecting a Crypto to invest in - Part 1

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A cryptocurrency or "crypto" is an encrypted decentralized digital currency that can be transferred from one individual to another.

The cryptocurrency market was born in 2009 after the launch of a project called Bitcoin (BTC). Since the release of Bitcoin, other coins have also come out as well like Ethereum(EtH), Litecoin(LTC), Cardano(ADA) etc.

With the involvement of many cryptocurrencies in the market, it is becoming increasingly difficult for traders to select which one(s) they would like to trade or invest in.

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The issue of deciding is made harder by new market companies posing their currencies as the next Bitcoin.Investing is a very important process to financial freedom, no one likes to lose money:
that is why we would be talking about fundamental moves you must take when selecting a crypto to invest in.

The first thing you are to keep in mind when searching for a digital currency exchange, and indeed when considering any aspect of a cryptocurrency investment,
is that scammers and fraudsters are out there, in form of individuals and also in form of companies creating their own coins.

They can have a very real impact on individual investors. So caution comes prior to any other factor.How can you be certain that a particular cryptocurrency exchange offers a legitimate service?
First, look for the physical address associated with the exchange. If there is no address readily available, you should not use the exchange.

There are many reasons for this. First, transparency is often a sign of legitimacy. Second, without knowing where the exchange is based, you won't have a good sense of the often-thorny legal ramifications of your investments.

And third, if your account should get hacked, it is much easier to address these problems. with the exchange and any regulators that may need to be involved if you have a physical address for the exchange itself.

Be extremely careful especially when you want to invest a large amount of your savings into a particular crypto! If you are going to making a large deposit or transaction, you want to make sure there is a guarantee in place that your money is safe.

There have been a number of larger cryptocurrency platforms that have gone bankrupt and have taken the money of their investors with them.

The last thing you want is to lose a lot of money due to a lack of research. By taking the time to find out what safeguards a particular platform has in place, you can figure out whether or not they are the right fit for your needs and prevent losses from happening.

If you are just a beginner, you should learn about the blockchain. This is the underlying technology behind every crypto project. After obtaining an understanding of how the blockchain works, look for a good guide on cryptocurrency. Is the coin a security token or a utility token?

Is it a security token? This means anyone that owns a coin also owns a piece of the company, much like a stock
Or is it a utility token? These types of tokens are redeemed for services on the blockchain.

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And don't keep your coin in exchange wallets, if trade is completed withdraw them to your own wallet.

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