In 2017 alone, Bitcoin has gone from $1,000 to $20,000, which is an obviously impressive growth. Ethereum and Litecoin have also recorded similarly important explosion, but not every coin can, or will, follow the same path.
As a trader or investor into the crypto market, you need to understand the specifics of each coin that you trade, and that includes its price history and reasonable future projections, so you can plan your trades accordingly.
There are some tips to chose a coin with a huge potential of growth, based on the fundamentals analysis of the coin/token that will allow you to take the buy decision.
First of all I want to explain to you if you don't already know what does mean the fundamentals analysis and how we can project them to chose witch coin to go with.
''Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities, and earnings); health; and its competitors and markets. ... to evaluate its management and make internal business decisions and/or to calculate its credit risk'' wikisource
In simple world Fundamental analysis is analyzing data and all kind of information related to a company,commodity, currency.... to predict it's growth or decreasing in the future to allow to traders to take the buy or sell decisions with a high chance of profitability.
Here we are and I know that's you may have many questions, how to use the FA into the cryptocurrency market? and above all, how to chose a new token to buy and hold?
In fact a new token have no history to allow us to analyse how they perform on the market and bellow is a check list you can do before taking the decision to invest:
Coins whitepapers: Document created by the token developers explaining the coin purpose and it's technical particularity, it will give you a good idea of the coins and it's very recommended to check, before making your buy decision. I will personally Avoid marketing scam oriented text to invest.
Coins slag channel &Blog: it's a channel where founders developers are communicating to the public about the coins news, updates and more, you can get you questions answered there if you are not lucky to find them already answered.
Coins forum: Very important to join the forums and see what the community is thinking about the coin and have a large idea about how the coin will perform, keep in mind that if others buy it, big are the chance that the price will explode. To start you can join reddit, bitcointalk.org and of course Steemit.
Don't miss to read my post about The 6 Common Mistake to Avoid in Crypto-trading.
Thank you for reading and let me know if I can be for further assistance.
If you find my words valuable don't hesitate to up-vote and resteem, if you have a question or propose please leave a comment and I will gladly replay as soon as possible.
