For over a decade, cryptocurrency has been a heavily discussed topic. The topic of investing in cryptocurrency has become especially actual after the famous Bitcoin rally in 2017 when many Bitcoin millionaires appeared.
Now, many people are inspired by 2017 and are thinking of trying investing in cryptocurrency. Of course, any investment is connected with risks, especially if it is an investment in cryptocurrency. That’s why we have prepared some tips to help you avoid major risks and invest as profitably as it is possible in the current conditions.
Risks Are Present, Be Ready for Them
Even if you use the best instant cryptocurrency exchange online, it doesn’t cancel the fact that cryptocurrency is highly volatile. Thus, there are always risks that you might lose more than gain. Be ready to accept the risks and the losses if they happen and never buy coins for the money you cannot afford to lose.
Bitcoin Is not the Only Option
While just a couple of years ago, Bitcoin was one of the most reliable coins, while other cryptocurrency types were rather shady, everything has changed now. While Bitcoin is still a dominant coin, there are plenty of not least attractive coins to invest in. For example, you can check such options as:
- Ethereum, with its new approach to cryptocurrency and blockchain
- Litecoin, a fork from Bitcoin
- Ripple with its immense perspectives for the financial industry
There are many other options out there, the mentioned ones are just examples. You can make your own research and choose those coins that are, in your opinion, useful for the market. It means that they have perspectives, and their value will be growing. By the way, on https://letsexchange.io/exchange-rates, you can check the current prices of selected coins and determine the current trend.
When choosing a coin to invest in, don’t forget to read the whitepapers released by the projects you are interested in. We understand that this activity might be not the most interesting. But it will help you to understand the project better and to see its perspectives if any.
Note: if you cannot understand much about the project from its whitepaper, it means that you better keep your money away from it. If the team cannot explain clearly what the point of the project is and why it can be beneficial, they might not have a clear idea about the project. In such a case, it is recommended to avoid it.
Check Whether There Are no Scam Signs
Always check the project to invest in for the signs of a scam. If you notice at least one such sign, run away. There are many reliable projects, you don’t need to risk your money.
- The team shall be credible. Look for the names in LinkedIn, compare photos, contact the team members if possible.
- If the ICO guarantees a return on your investment, it is a scam. None project can guarantee anything in the crypto world.
- The GitHub repository is inactive. It means that no development works are performed, and thus, the project isn’t moving on even if it exists at all.
Some Words to Sum up
These are just the basics. Of course, you shall consider many more details if you are going to invest seriously. Start with checking the mentioned details first. Only if they are fine, you can move on with further research.