When investing its not all about buying and storing or staking tokens. You have to select, analyze and diversify your portfolio. Imagine you invest only in the Meme tokens and then after keeping them for years you then discover they do not have much volatility.
What should you consider?
- Project Behind
When selecting token to invest in you should analyze them in their categories so that you see which categories have the bright future. Here is a short list of other categories to look at:
- Yield Farming
- Crypto Exchange
As we all know, adoption of a crypto currency determines its future. If an altcoin or token is well adopted then its future is bright. For that to happen, that altcoin should give investors reason to buy it.
Investors these days they are into love with the Decentralized Finance so which means if you play your cards right and chose the right DeFi tokens then the chances of you making money is high because DeFi is on demand.
Investors are into yield farming these days and especially in these days when the whole crypto market is in red sea, investors would be looking for Yield Farming platforms to stake and yield so whichever token is behind a certain yield farming will increase in value e.g Harvest Finance or Aave (LEND).
Centralized Crypto exchange and Decentralized Exchange based tokens are also good to invest in as there are higher chances of them going up e.g Binance Coin was launched selling for $0.11 but it has an all time high of around $600 and also the meme of course they do not move much but recently after Doge moved we saw more of memes being listed so you never know.
When investing you just have to make sure you diversify your portfolio and include different crypto categories.