- If you still want to buy smaller market cap coins, only invest in companies that have a killer team and track record.
I've done a bit of angel investing in Silicon Valley and this is the #1 indicator of success.
The latest coins will promise you that they are going to solve the world's problems with their token. Their website is going to be really flashy. They will tell you how much money they've already raised and you are going to miss out if you don't buy some of these coins.
But all you should care about is how long has the company been around (should be more than 1 year) and what other successful projects have the team members been a part of.
This is REALLY important right now because most of these coins, whether you realize it or not, are hungrier than you are to make big money. They are selling you on investing in their platform. They are not friendly, kum-bay-ya, save the world types - they want to make millions and millions of dollars.
There's nothing wrong with that, but you need to be sure that they're going to make the money from their token and not from your investment.
Whatever you do, don't buy a coin just because you see it going up or down on the price tickers. There is nothing closer to gambling than that. Do your research, buy into a team you believe in.
- Follow the news. As the market heats up, pay attention to what exchanges start listing new coins.
A good example is when Coinbase listed Litecoin on it's exchange - the price went through the roof.
Same in China - when OkCoin allows ETH to be sold, volume increased significantly.
Realize that most people in this market do NOT want to get into the deep technical exchanges to convert one coin to another. They want to log in, press Buy and make money.
As the market grows, you'll see exchanges start to offer services that allow for a better buying experience with new coins. When you see this happen, you'll see a large spike in price of that coin.
If you're paying attention, you can make big money with low risk.
I hope this helps you in your cryptocurrency journey and helps you make a more informed decision about what coins to buy. Here's a quick summary:
Buy the big market cap coins. If you want to get bigger returns, focus on generating more cash to buy more of those big coins...NOT buying higher risk small cap coins.
If you want to buy small cap coins, do your research on the team.
Pay attention to what coins are listed on the exchanges in the coming months.
Do you agree? Disagree? Reply to this email and let me know.
Keep your eye out for the next email all about when you should sell and if we're in a bubble...
link part 1: https://steemit.com/asset/@pooldarbashi/the-asset-protection-coin-buying-guide