What to do when selecting a Crypto to invest in - Part 2

Considering the project�s business proposition will stop investors from being lured in by hype or �fomo�. Is the coin mined using Proof-of-Work or Proof-of-Stake?

This is another important factor to consider. After learning everything possible about the inner workings of the blockchain and the function of cryptocurrency,
you are finally ready to start investing.

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One of the most important thing you should know is that the crypto market is risky if you are in for huge amount of profits. Like almost all investment assets, high risks yield high rewards.

With more than 4500 cryptocurrencies in the market, most people see Bitcoin as the most volatile and stable. They take it as a safe bet because it is the oldest in the market.

But you should be aware that the crypto market can be filled with ups and downs if you are not careful and observant with the change in seasons.

Apart from Bitcoin, the other cryptocurrencies are referred to as �altcoins� with Ethereum(ETH), Tether(USDT),True USD(TUSD) and USD coin(USDC) being established and stable cryptos.

It is always advisable to spread your risk by diversifying your investment. To make your investment portfolio stronger, you might need to invest in one or more stable digital currencies.

Stable currencies are designed to imitate fiat currency(Fiat money is a government-issued currency that is not backed by a commodity such as gold.)
These keep price fluctuations at the bare minimum and are a good way to put your money into a cryptocurrency exchange.
Another important factor to consider is the number of exchanges the coin is currently being traded on. Is the coin available on most major exchanges or only the smaller exchanges?

Announcements about coins being added to major exchange platforms like Binance can affect the price significantly.

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