Five Golden Rules How to Choose a Cryptocurrency to be Happy with Your Investment
Investing is a complex and responsible business, even when it concerns conventional assets, such as shares of well-known companies, real estate or bonds.
In the newborn world of crypto-currencies the classic problems of the investor are multiplied by the enormous speed at which projects develop and the lack of a long-standing history. The situation is strained by almost 80% drop in the cryptocurrency market in 2018.
However, even in this sensitive situation, investments in cryptocurrencies remain one of the most profitable areas of investment when reasonable approach is applied.
The key requirement for lucrative operation in the cryptocurrency market is the careful choice of the project in which you plan to invest and a clear understanding of its operating principles.
Let’s take Karatgold Coin (KBC) to illustrate the criteria which a cryptocurrency project should meet to be a well-informed choice of a subject of investing activities.
Rule one
Before you make your first investment, you should carefully examine the project that is behind the cryptocurrency. You should get a clear understanding that it is not a bubble wrapped in a beautiful marketing cover. The cryptocurrency should be supported by an enterprise with real assets, successful projects and a history of at least several years of flawless operation.
Thus Karatgold Coin (KBC) was created by one of the most successful enterprises in its own sphere, Karatbars International GmbH, Stuttgart, which since 2011 has been providing physical gold assets to a customer base of over half a million customers. In 2018 KaratCoin Bank, the World’s first cryptocurrency bank was established in the United States, the country which has the most stringent financial regulation and huge financial opportunities.
In the cryptocurrency world only one of a hundred projects can boast of such a background, at best; having such a background is an exception rather than a rule.
Rule two
By investing in a crypto currency, you invest in the economy or technology behind the project. You should take into account the fundamental reasons for the growth of the chosen industry, carry out your own analysis and understand the situation and dynamics of this industry in the conventional economy.
Thus having offered the market a crypto currency backed by gold, Karatgold Coin presented a product that is in great demand in the fiat world — stability and predictability of the payment system. Recent global financial crises and a huge Total Global Debt prompt to invest in time-proven assets.
A gold-backed payment system and a thousand-year history of using this metal as a means of payment lend credibility to your investments. Gold has always had high value and it is unlikely that this situation will change in the next thousand years.
Rule three
Consider the prospects of the project. Current project activities and plans for the near future will directly affect the value of the crypto currency it is based on.
Having completed one of the most successful ICOs in history and having collected more than $100 million, Karatgold Coin (KBC) has already bought a goldmine in Madagascar with gold reserves of $1.1 billion and announced the opening of its own crypto-exchange. Based on its own KaratCoin Bank and KARATPAY payment system, the project is confidently moving towards its target of $500 million market capitalization by 2020.
Rule four
Functionality of the token. How can the token in which you plan to invest be applied in addition to exchange trading? Karatgold Coin (KBC) is a gold-backed means of payment. Merchants and online shops as well as service providers can be connected and accept payments with CashGold. You can buy goods and pay for services with the gold-backed cryptocurrency.
If at any time you choose not to sell your bought KBC on the exchange or to use KBC to pay for goods and services — you will simply exchange them for gold ingots that will be delivered right to your door. Thus, in addition to being able to use KBC as a speculative instrument or a means of payment, you can make use of its investment potential.
Rule five
A cryptocurrency should be well perceived in the cryptocurrency community and have a confident position on exchanges. It should show good trade and growth volumes and rates; the project should be approved of and voted for by indendent analysts and experts.
When describing Karatgold Coin it is better to give the floor to independent experts from livecoindata.com: “Will the Karatgold Coin price increase? Yes the Karatgold Coin price will increase long-term. As time goes on and the Karatgold Coin technology evolves and Karatgold Coin is adopted more into everyday life for people. We think that the Karatgold Coin price will surely increase and therefore Karatgold Coin could be a great investment option for you”.
Adhere to the five golden rules for choosing a cryptocurrency and your will get a hundredfold return on your investments.