The world of cryptocurrency is one which is very tantalizing indeed and we are seeing more and more people looking to get involved with crypto investments. One thing which we have to make sure however is that whatever the investment is which you are planning to make, has been incredibly well researched. Given the pump of the market it is easy to assume that any crypto investment will make money, but this simply isn’t the case.
Experts like Robert Testagrossa, a huge supporter of cryptocurrency, often speak about the dangers of investing, and this is why you have to make sure that all investments are well researched before you part with your cash and kept in a safe online wallet like Fireblocks digital asset platform.
The biggest worry in the past with crypto coins was that they could be pumped and dumped very easily by what are know as whales. Basically these investors would own 50% or more of the coin, encourage others to invest and then when the price rose, dump their stake and leave everyone else potless. This is more likely with low level coins with small market capitalization. A simple piece of investigation work by you will ensure that you stay away from these kinds of coins.
Keep The Faith
Research isn’t just important so that you can spot any pitfalls, it is also crucial so that you can make sure that you keep faith in your investments. The reason for this is that there are just so many incredible projects which are taking place right now, which will really blow your mind. Many like to look at crypto as just coins but they are in fact heavy backed up by truly existing projects. If you believe in the project then you are likely to keep your investments in longer, and hopefully make more money as a result.
Understanding Signs to Get Out
Especially in the case of alt coins, the better that you understand the project behind them, the better you will know when the market is telling you to get out. For example let’s say that you buy a coin which is planning 3 critical updates throughout the course of the year. These updates should bring about more confidence and more faith in the coin. If however these updates take place and the price doesn’t begin to move, or in fact if it moves down, it may be that you should pull your investment out before things drop.
Making The Best Choice
There are hundreds of coins to invest in, not to mention NFTs and making the choice can be tough. This is why you shouldn’t just base that choice on what someone says on Twitter, but rather as a result of your own investigation work. This is going to really point you in the direction of the best place for your money, and could even help you to find a great coin which is going to take off very soon.
Always ensure that you do the necessary research.