Hello fellow steemit,welcome back to EPISODE 2 of this interesting and thrilling topic.Like I did mentioned in the last EPISODE 1,I will be reeling out some of the vital steps to take before taking that decisive action that could make or mar your hard earned money.
My approach to cryptocurrencies are similar to investing in startups. I create portfolio's of 10 - 20 cryptos,although I am a positive and optimistic thinker,in this new crypto terrain I do not commit a 100% assurance or confidence on any of them,digital coin trading is still much in its embryonic stages,with so much speculation,and very long way to go,thus so much could happen anytime. But hopefully one, two,three or more will become the next big thing in the nearest future and make it all worthwhile. Also I am investing only money I am 100% ready to lose,any better outcome is just pleasant surprises.
STEPS TO TAKE BEFORE YOU LEAP
- Firsly have the mindset that the cryptocurrency world is disruptive and has come to stay and take over. These thoughts must have a thorough background understanding on how it works. - I always read BTC whitepaper and Whitepaper of every cryptocurrency from TOP 10 by market cap to develop a strong base knowledge of the industry.Ask questions on reddit, etc,stay clear from spam groups full of hypes all talking about random price fluctuations.
2.Understand and get the value proposition of a coin or token, which blockchain is it built. For those built under Ethereum,ask yourself - does it make sense to invest in this coin? Isn’t it better to invest directly into Ethereum? How are they correlated? If the coin is priced pretty low,as compared to a high market cap,you might go directly for the coin. If prices already moved a couple of hundreds or thousands upwards, you might as well invest directly into ETH.
Even when you are sure of the right price, dig deeper -Is it inflationary and how much? Is it valuable for this project to use blockchain? Most of the services could just as well use SQL database and it wouldn’t matter.Beware of same old companies disguising itself as disruptive blockchain tech. There are plenty of them.
Pay special attention to the teams involve in the project - who are these guys? How experienced are they? Are they fully committed or is it just a sidekick project? who are the developers and how many of them ? A boggy boggy list of founders ,with only 1-2 developers is a no go area for me.Beware .
We will be having a break at this point,as we will proceed with the next and final Episode 3.In Episode 3, I will also unveil some of my crypto picks and reasons for choosing them.Your suggestions,comments are always welcome and appreciated.Please endeavor to resteem to reach other members who will be very much interested in this topic.If you missed the last EPISODE 1,here is the link -
https://steemit.com/cryptocurrency/@detycoon/cryptocurrency-investments-present-and-future-reward-risk-factors
DISCLAIMER:
Be informed that, none of this is intended as Financial advice, these are merely my thoughts from my research so far.
