How to Invest in Cryptocurrencies

Determine your strategy

Are you planning to hold long term or are you just in for a quick profit? Look at price charts over the previous year and get an idea of your ideal entry point. Take a look at other coins, including Bitcoin, and compare the overall charts. Are they trending up or down in unison? This could suggest overall market moves.

Don’t get emotional

Falling in love with a coin can be a bad move. Emotions can trigger poorly executed buys and sells. Make your decisions based on your own research and not hype. Forums and chat boxes can be full of hype.

Research the team

Crypto is a relatively small world where everyone kind of knows everyone. Do the founders have a good reputation? Who are the advisors? With many new coins being created to simply profit from an ico (initial coin offering) and coins that aren’t very innovative, investing more in the team than the technology can be a sound strategy.

Research the technology

What problems can the cryptocurrency solve? How many developers are working on the project? What apps (or dapps) exist or are being created? Is there a whitepaper and roadmap? These are all very important considerations when comparing cryptocurrencies.

Is a hardware wallet available for the currency?

Very few coins are supported by hardware wallets. The ones that are have a clear separation from the rest. With security being more and more important, having a place to store your investment off an exchange and away from an online wallet is becoming a necessity.

Don’t chase spikes

If you’ve been invested in a coin that has been flat or downtrending, it’s tempting to jump ship and chase one that’s moving. Be very careful, coins that spike up quickly often spike down quickly. Do your research to determine why the coin is moving. Get involved in Slack channels and The Cryptocurrency Collectors Club on Facebook to get insights before coins move. This will help you become a knowledgeable investor instead of an emotional gambler.

Timothy Suggs

http://blocksouth.com

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