Cryptocurrency is like 10 years on the stock exchange packed into one single day. It is utter madness. A standard day looks something like this. DGB up 50%, ETH down 10%, ETC up 25% wait no down 40%. It can be a beautiful paradise or a nightmare, like a blood sucking vampire who will drain you of every last scent.
You get the point.
These kind of movements are hair raising and are not for the faint of heart. So I’ve put together some of the things I’ve learnt along the way and to consider when putting any of your money into Cryptocurrency.
Assess the technology and the team.
Like buying shares or any kind of investment. You need to understand what exactly you are putting your money to. Cryptocurrency is like the wild west so this is more important than ever.
First assess what the technology does, is it a wide scale technology that can be used across the board? Is it a piece of technology that enables other technologies to be built on? Will it dramatically improve the way a corporation does business? Is the technology to broad or is it focussed enough to penetrate an industry and become the leader of that industry? But importantly, just how green are the team behind the tech? If they are green, what are they doing to surround themselves with the right people?
You need to ask these questions. There are a bunch of cryptocurrencies that a great ideas. But, a great idea doesn’t mean it is going to penetrate a market or make a splash..
Look at coins that actually have a product.
An idea is not a product. If you have ever been involved in any startup you will know until you have a product, with interested people and some level of traction. You literally have nothing. Ideas are just ideas. Avoid putting your money into an idea alone. There is just too many things in the world of startups that can go wrong and that will go wrong.
If they aren’t good at Sales and Marketing. Stay away.
Marketing and a promotion. If they don’t have a great grip on this stay away. Simple. People won’t just lap up a product, they need to be shown the way and convinced it is a good thing to get involved in. They need to have a firm marketing strategy. Jump on the forums and have a look at how the team behind the product speaks. A lot of these companies are super accessible and unlike other companies you are putting money into, you can actually have a dialogue with them.
Great technology doesn’t just sell, it needs to be sold. Are they out there pitching the tech? This is where the value is.
Be prepared to lose everything.
Don’t put a cent in that you cannot afford to lose.
Make firm decisions and stick with them.
If you have made a decision on the coin you are interested in putting your funds into. Don’t ride the waves, don’t jump in and out. You will buy high and sell low, if you jump in and out.
READ, READ AND READ.
Stay informed, be on top of where your money is. If you are going to set and forget, that is fine. But, at least keep your hand on the pulse. But, stay away from any general chit chat amongst trolls. This is a sure way to lose your funds.
These are the things I’ve learnt along the years. It is not for the faint of heart. If you are adverse to risk, keep your money. If not and you want to dip your toes in. Follow these points and hopefully you will be a bit closer to seeing a return on your funds.
Written By The Surgeon General