I am relatively new in the cryptocurrency sphere, I was sold on the hype and I started learning what all the hype is about. I have started my journey trading cryptocurrency, I will say it has been a great journey. Over the next couple of weeks I will share with you my journey. What I am learning in the process and the mistakes I have made thus far.
A lot of people are getting into the industry and I strongly believe cryptocurrency is here to stay. So whether you get in now or wait you will probably have to get in at some point.
For those that are getting in now, how do you approach it in such a way that -at least gives you - a chance to be successful? Like any industry you have to use trading strategy. You need to know some primary steps in order to be successful.
The first and most important, and the only thing I am going to cover to today, is strategy. You need to have one if you are going to trade Cryptocurrency. Don’t have fall for the hype everyone is buying bitcoin so you go out and buy some bitcoin. That is a recipe for failure. Most people do not have a strategy, and think this is a way to get rich quickly, at least that is what I thought when I set out.
With this post I want you to be able to do your own homework and when eventually do put money in you are doing it with confidence and you are putting your money in a coin or currency you believe in. Please understand cryptocurrency is just like money at its core it a medium to facilitate transactions.
Below are the steps you need to follow to ensure you have the right cryptocurrency for the Long term
Select you coin/token
In order to select a good coin to watch or consider buying you have to consider two things. First the valuations and the second is “why are you optimistic”(Why do you like that coin)
Valuations: You first consider the market Valuation of a particular coin. Bitcoin now has a market cap of about USD20 billion that is the same as the GDP of Zambia. That does speak about how wide spread the coin is. You can find all the information you need on Market cap at “coinmarketcap.com” the larger caps are the top 5 coins. The medium cap coins are the ones with $200 million to a billion US, these are good coins to buy and get into. Because they are showing a lot of growth. They have media coverage, and their adoption rate is good. The Small Caps are the ones under $200 I would recommend you stay away from these.
Why you are optimistic: This is a fundamental question and that speaks to how well you have understood the coin, the technology and team behind it.The first thing you look at is the Target market. What is the coin aiming to be? Is it cloud technology app development, Finance? What is the coin looking to disrupt. The second is the technology. The target market might be there but is the technology there. How easy is it to access? The third thing is the team developing it. Do they have the experience? What have they done in the past. Who are they working with? Who is partnering with them? The last but not least is growing adoption. Are people adopting the coin? Are they using it? Are co-operations getting on board? If the coin does not meet at least three of these qualities I would recommend you stay away from it
I will continue tomorrow. Please leave a comment and don't forget to upvote!
Ethereum: It is a blockchain for “smart contracts” Programs will execute contractual terms automatically. Possible applications in the entertainment industry. Market Cap at $26 billion.
Ripple: wants to disrupt the slow, opaque and pricey world of international wire tranfers, already has 75 bank partners. Market Cap $9 billion. YTD Return . (I really like this coin)
Siacoin: Taking on Amazon S3 with decentralized file storage that’s a tenth of the cost, faster and more reliable. Market cap at $390 Million.