As crypto gains momentum with many people starting to grasp the concept of it all, it is important to know these six (6) things before you invest your money in any crypto related activities. Cryptocurrency is a highly volatile market; it is vital to exercise due diligence and understand the risks involved. Here are a few steps to get you started on that crypto trading journey;
1. Always read the whitepaper
This is the official document made by the makers of any specific cryptocurrency. It is important to have access to and read the whitepaper of each currency so that you can understand the features, goals and the technology behind the invention of that currency. Though this just gives you the basics, it is advisable to read it first thing so that you can understand what you will be getting yourself into and its future potential. The potential of the currency can also be seen by observing the currency's market trends. This will give you details on how the currency is performing and allows you to see the price changes and any developments with regard to the currency.
2. Check the technology
The cryptocurrency market is highly influenced by technology. It is important to assess the technology behind your cryptocurrency of interest in order to understand the blockchain technology it uses, see if it has been adopted for use/ use cases. Adoption/use cases involves how other people, businesses and other entities have interacted with the currency. The presence or absence of use cases can be an indication of the potential of the currency for long-term success. But then again, with crypto anything is possible as it is a constantly evolving entity.
Research
Crypto is an 'each for himself' kind of world, therefore it is important to conduct your own research. Research, research and research once again. You can also follow popular cryptotraders who share pointers on their socials. Join telegram groups (watch-out for scams), watch tutorials on YouTube, follow cryptocurrency news, stay in the know all the time. Do anything you can to increase your knowledge about that currency, as your investment will depend on that knowledge.
As always, do your own research, stay vigilant and happy earning!
