Are you looking to invest in cryptocurrency but aren’t sure which is the best option? Maybe you have heard success stories and want to get in on the action but have no idea where to start? Well, you aren’t alone!
Cryptocurrency is exciting, but it can be confusing and challenging to navigate at first. There are many different currencies and wallets out there; it can be difficult to know who to choose or even understand what cryptocurrency is! Thankfully https://turbowallet.com/guides/what-is-cryptocurrency/ has a wonderful guide on understanding cryptocurrency, so be sure to check them out!
Once you have established what cryptocurrency is, you can use our following guide to choose the right currency. We have included some handy tips and tricks to make the process even easier. Just keep reading to find out more!
Choosing cryptocurrency – your guide
Let’s get straight into it! When choosing the right cryptocurrency for you, there are a few factors you should consider. These can seem confusing at first, but take your time, and you are sure to navigate the world of cryptocurrency with ease. Reddit is filled with helpful forums explaining the more technical concepts in simple terms that even a crypto novice can understand if you encounter any issues! Let’s get into our tips today!
- Check the community
Cryptocurrency has a huge following, and the community of a cryptocurrency can be a good indicator of its success. People invest in currencies they believe in and are interested in, so when you find a cryptocurrency that appeals to you, check out its community! YouTube channels and Reddit are excellent places to do this!
Find videos or subreddits about the currency, or ask for people’s opinions on the currency. Generally speaking, the better currencies will have active communities and threads on Reddit.
- Fundamental analysis
This can sound confusing, but fundamental analysis refers to the foundations of an investment – the team, ambitions, strengths, etc., of the cryptocurrency. If you are new to the cryptocurrency world, you don’t need to worry too much about the technical stuff that will come in time, and with plenty of help from the community.
In the long term, fundamental analysis is just as important as technical analysis and allows you to make better decisions, separating the right investors from low-quality coins. Our next few steps will show you how to do this!
- Look at the team
Before investing any money, research the cryptocurrency’s team. This is one of the most important factors you can look into! When researching the team, consider the following:
- Who are they?
- Do you trust their expertise?
- Are they ambitious?
- Is there proof of previous success?
These questions will allow you to determine whether the currency has a chance of success or not before investing. See what other experiences the team running the currency have to help learn more about them.
- The technology
A huge part of cryptocurrency’s success is its underlying technology. Understanding how it performs against its competitors and what makes the technology stand apart from others will allow you to make the best choice for you.
Keep an eye out for the big innovators and cryptocurrencies. For example, let’s use Ethereum, one of the best cryptocurrencies, technology-wise, to look out for. Why? They use smart contracts, a form of technology, to exchange anything of value. It’s a tad more technical than that, but that’s the gist of it. They also use technology that allows developers to integrate the blockchain with their applications, setting it apart from other currencies on the market.
Look at the technology and spend some time familiarizing yourself with it before diving in.
- Previous pricing
It isn’t always the case with cryptocurrency, but pricing fluctuations can provide you with the history of the coin and tell you if it’s a solid investment for the future or not. Consider the following when researching the pricing history of a cryptocurrency:
- Is their value volatile?
- When the market takes a big dip, how did the coin do?
- Are they priced at an all-time high? If so, wait until the cryptocurrency takes a dip before investing.
Understanding the pricing history can be tricky, but there are plenty of websites you can use for assistance here. You can also attempt to predict future price movements of the coin before investing, but this is tricky for beginners and best avoided until you understand the market better.
- Its reputation
Finally, you should consider the credibility and reputation of the cryptocurrency. Avoid any currencies with a bad reputation; you don’t want to be left in the lurch! Look online for reviews and check out community pages to see what people think about the currency. You will want to invest in a cryptocurrency that people are positive about!
And there you have it, a guide to choosing the right cryptocurrency! Be sure to use our tips to navigate the world of cryptocurrency and choose the right currency and wallet that suits you! Be sure to check out forums or speak to others investing in cryptocurrency to learn from their experiences and invest wisely today! Remember to invest only money you can afford to lose to avoid financial stress.