FOLLOW THESE TIPS SO YOU ARE NOT FOOLED WHEN CRYPTO INVESTMENTS!
Investing in crypto is now getting more and more popular, besides investing in Bitcoin as one of the most expensive coins, you can also invest in other altcoins at a cheaper price. Investing in altcoins can be an option for novice traders. Perhaps, some novice traders will find it difficult to choose which coins are safe because there are so many of them. Before you want to buy altcoins, you must first understand what altcoins are in the previous article entitled Crypto Altcoins and Its Types.
Then how do choose the right and safe altcoin for novice traders? Here are the tips:
DYOR Before Buying Crypto Assets
The first thing to remember, with a large number of courses some people will feel confused in choosing an altcoin. Therefore, it is recommended that you do DYOR independently before buying. Some aspects that need to be considered during DYOR include the technology that is carried, who is the developer of the altcoin, trading volume in a day, historical price charts, how the price dynamics are, and the history of the altcoin itself. Besides Bitcoin, there are 9 other altcoins that have the largest market share at the moment (as of August 23, 2022), namely Ethereum, Tether, USD Coin, BNB, Binance USD, XRP, Cardano, Solana, and Dogecoin.
Find out the situation at the time of the ICO
Second, when an altcoin wants to be launched, the developer will definitely hold an ICO event, where the price sold at the time of the ICO will be cheaper than at the time of listing. Beginner traders can see how buyers demand at the time of the ICO, whether people are interested or not. This can be your reference to see the opportunities of the altcoin.
Find Out Who Is The Developer Of Altcoin
Don’t forget to find out who the people behind the altcoin you will choose are. This can be one of the factors to see how the altcoin you choose will be in the future. If the altcoin developer is someone who is qualified in the crypto world, it is likely that you will see a lot of surprises that the developer will launch. For example, Cardano and Polkadot were developed by the people who also made Ethereum. Now you can see how both of them perform in the market.
Try diversifying the altcoin you choose once in a while or don’t just put money in one altcoin. This helps you to assess which crypto asset is right for you. Thus, you have practiced the process of diversification.