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Tips for Investing in Crypto Currencies Part 1

by | 9 Mar 2020

The crypto market can be very large and confusing for a newbie. Every coin and every company claims to be the best, of course. We would like to share 10 tips with you so that you can make better decisions in the future when making your investment choices.

Tip 1: Mindset

An important aspect to operate successfully in the crypto market is the mindset, the mental attitude. In order to invest, you should focus on the long-term, big picture. The daily small price movements are not very relevant. Don’t worry, enormous profits in a short period of time are not excluded at all. The basic strategy we recommend is to recognize projects and companies early on that are currently massively undervalued. Accordingly, they have great, but also long-term growth potential.

Tip 2: Invest in undervalued coins / tokens

How do I know whether a coin/token has great growth potential? An important indicator is the “Marketcap”. This is an indication of how much value all the coins / tokens in a project currently have together. This can be looked up on the Internet on platforms such as Coinmarketcap.com. Ask yourself the question whether the current value of the coin is small compared to the market that its product or service wants to “attack”. Compare the current value of the coin with that of direct competitors. Pay attention to how many coins/tokens are already in circulation and find out when more will be issued. It is also important to know on which exchange the coins are listed. Look for reputable providers such as Coinbase, Kraken, Bittrex or IDEX. There the risk that the exchange goes bankrupt is low.

Tip 3: Finding a big point of pain

For the identification of a promising coin/token it is important to find out which problem the coin/token or company wants to solve. The problem must be as big and “painful” as possible. As many parties as possible must be able to benefit from the solution. A lot of money or time should be earned or saved. Under certain circumstances even a completely new market should arise from it. The coin/token should play an important role in this process and actually have a purpose (tokenomics).

Tip 4: Look for a Superstar Team & Advisor

An innovative and ingenious idea on paper is great, but is of no use if it cannot be realised. Ideally, the team that is to realize the project must have already proven in the past that they are capable of implementing projects successfully. The individual members of the team need a clean background. The advisors/consultants should also be checked out. A classic Google/LinkedIn research of the individual persons can be recommended. If the team or individual members of it have received awards or acknowledged patents, this is usually also a good sign.

Tip 5: Conduct intensive research

An investment based on simple advice from a colleague is not a promising basis, it is more lottery. The ideal way to learn more about a project is to meet the founder of the project at an event or meetup. The “Whitepaper”, a document with information and facts published by the company, should also be checked carefully. Otherwise we recommend intensive internet research in Reddit, Bitcoin forums like Bitcointalk.org, Twitter or special Crypto-Facebook groups. Direct tracking of a coin/token project in official telegram groups is also recommended.

Who is already invested?

This question can be very helpful. If a project has received support from a well-known investor or venture capital company, then this should be highlighted positively.

Disclaimer: The advice given here is not financial advice. You act at your own risk and nobody can guarantee you results. I will not and cannot be held liable for any actions you take based on the information read here.