Eat or be eaten?

Although the world of cryptocurrencies is generally frowned upon by society, as it is believed that everything is a scam and that everything has no foundation, slowly, thanks also to prominent figures such as Elon Musk, Warren Buffet and many others, this world it is slowly being discovered by more and more people.

In this world you can be two very distinct things: who eats and who is eaten.

People who eat are those who study new things every day, understand the potential of something, understand why it will go up or down, have a constant hunger to always learn new things and are the same ones who will make their way with time and dedication.

The people who are eaten are those who do not study, who invest in crypto just because someone says so, just for news or advice from a friend who knows even less than him, they are destined to lose all their money and make enrich the people who understand it.

I am sure that you, yes just you, as I was too, even if only for a little while, you were person B, because it is totally normal.

When we face something new we are afraid, we always look for support towards someone who seems more experienced than us, who gives us security in our actions, we look for a continuous consensus that is not positive for us.

You Have To Study.

The only way to get out of this laziness is to study, to become passionate about the subject so much that I say that this is what I like to do.

We need to understand what style of investment we are interested in, whether to trade in the short term, invest in the medium to long term and then hold the currency for months and years.

To trade there are millions of books and courses that teach you and I certainly won't be the one to explain it to you, also because I'm not a trader and I don't want to become one.

If, on the other hand, you want to invest for the long term, there are some tricks to do to understand if you are making a good investment or not.

First you need to identify the site of the coin in question, which is easily visible on sites such as CoinGeko or CoinMarketCap.

Once this is done we have to go and find the White Paper which is basically an elaborate in which all the information regarding the project behind that coin is explained, how it works and above all what it offers so innovative that it becomes fundamental for a specific purpose. or activity.

A coin without a valid purpose will have a short life and will only lead you to lose your capital.

The team.

Study the team that created that cryptocurrency, look for information about them to understand if they have experience with this area, if they have already taken part in other known projects. All information can be found easily online, both on Google and on sites like LinkedIn where you can usually find information about people's careers and studies.

Once we have established that the team is serious, we must go and study the coin itself, to understand how much chance it has of going up in price and if so, at what price it could arrive in the future.

We have to look at the maximum distribution and the circulating one, if a project has a finite number of units, it means that it is limited and therefore has more chance that its value will grow over time: eg. Bitcoin.

If, on the other hand, as in the case of all shitcoins, the supply is billions of billions, we can immediately understand that the price can never grow that much because it is mathematically impossible.

We also check that the cryptocurrency is already listed on important exchanges such as Binance, Coinbase, Bitsmart or similar, because this confirms that it is a cryptocurrency that at least has been recognized by someone.

The Chart.

Finally we must go and study the chart of the coin, to understand how it has evolved over time, if it is now in a moment in which it is overvalued and therefore it is not the right time to buy or if it is underestimated and therefore a good time to invest.

The past is no guarantee for the future but it certainly gives us excellent information on its behavior over time.

Do not go and invest your money in newly born shitcoins, with a horrible website and a white paper consisting of two pages because this is not investing, it is gambling.

Thousands of shitcoins are born a day, which after reaching a certain amount, close the liquidity and take all the money, leaving poor naive investors without even a dollar in their pocket.

For this reason, I tell you to be careful and make your appropriate considerations, studying is the strongest weapon to fight ignorance and recklessness in investments.

I hope this article has been helpful to you, see you next time!