When it comes to investing in cryptocurrencies, there is no perfect coin. No matter which cryptocurrency you invest in or are planning to buy, it will surely have some risk associated with it. This is the basic nature of cryptocurrencies. And that’s what makes crypto investing so rewarding. If you are ready to take some risks for huge rewards, crypto investing is for you. As for how to find the perfect cryptocurrency for investment, here’s a step-by-step guide for beginners as well as advanced crypto investors.
In the crypto market, everyone is always looking for the next big thing, or the next bitcoin. Well, the success of a new altcoin usually lies in how powerful the underlying concept is. That said, it can still not be guaranteed that the coin will be successful even if it has a powerful concept. There are other things such as execution, the team, marketing, etc. that matter. All in all, there are a few things one can consider to find the best cryptocurrency for investment.
Here is how to invest in the right cryptocurrency at the right time.
Buy during ICOs
Besides investing in the right coin, it’s also crucial to invest at the right time. The best time to buy any cryptocurrency is when the price is low. And the price of a coin is usually the lowest during the ICO.
ICO (Initial Coin Offering) is similar to IPO, where a company offers its coins to the first few investors at an introductory price before the official market launch of the cryptocurrency. The ICO price of a coin is almost always less than the launch price, which makes it the best time to buy a cryptocurrency.
Evaluate the cryptocurrency
Before investing in just any coin, it’s very important to study the market, the project idea, concept, demand, the problem they are trying to solve, about the team, and other things.
For instance, it is important to study how unique the project idea is. There are already hundreds of coins out there replicating bitcoin’s digital currency model. We don’t need another one. A unique idea would be something like the Libra Coin that provides a multi-dimensional blockchain ecosystem for e-commerce. The Libra Ecosystem offers an ever-growing suite of advanced products & services for effective and complete management of e-commerce businesses, with the convenience of low-cost & secure digital payments using the Libra Coin.
Tokenomics refers to the numbers around a cryptocurrency, including the total supply, the ICO supply, hard cap, soft cap, whether and how many coins will be burned, etc. Typically, the lower is the coin supply, the more demand, and therefore value, it will likely have in the market.
Sooner or later, every cryptocurrency gets listed on an exchange. The important thing is where the coin is being listed. The more popular and reputable the exchange, the more likely the coin is to get traction and have people trading it.
Libra Coin, for instance, has been listed on top exchanges like Vindax.com
Last but not the least, the best way to evaluate a cryptocurrency for investment is to look at the team. Whether the team has experienced professionals, with expertise and reputation in the blockchain industry, or it is totally composed of newbies with zero blockchain experience. A strong team full of industry leaders is definitely preferable.
Finding the right coin for investment is as important as investing in cryptocurrency in the first place. Make sure to do your research, read the project whitepaper, join the crypto community on Github, Telegram and other social media, keep up with project updates, and ask questions to the team. Only when you are 100% confident, invest in the cryptocurrency, preferably at the initial stage.