How to select and invest in the right Crypto Coin/Token. Starting with, I am not an expert or a financial advisor. I am dealing with Crypto investing for the last 5+ years. I am just sharing some ways how it is important to invest in the right Crypto Coin/Token. While many coins can make you overnight rich but you need to always be in for the long term. Invest right and in good projects rather than gamble and be stress.
How to select the good ones:
This is critical and important at the same time. While statistical data can show you the trend of the Coin, it will also give you a sense of whether it is a good coin or just a Pump and Dump scheme. You can look back at a time when it actually rose and went down and a valid reason why it actually did.
Uniqueness and Competition
While Bitcoin is the Father of all crypto it has a lot of shortcomings and at the same time, there are better versions of it. Bitcoin is unique in its own way there is more coin which will eventually take its place. Many big investors and balance sheets will have Bitcoin making it unique and a store of value. However, there are coins that might not be unique and may have better competition.
Usability and Future
While making a Crypto isn’t a tough task, there are many coins which is being created just to grab investors’ money and giving them a quick-rich dream. Before you actually invest in one seeing 1000x growth think and see their usability and Future roadmap.
Any current or Past controversies or issues
There are many good know coins that came under the radar. One good example is Ripple (XRP). While legally there may not be any problem in the long and short run the uncertainty and FUD may put you at risk.
Price and Diversify
Some coins may have already exhausted their Pump or price to value cycle. The future is unpredictable but you should always diversify and not stick to 1 coin. At the same time, over-diversification can cause issues as well.
These are some basics you need to keep in mind before randomly seeing a pumping coin or putting money just because someone told you so. End of the day it is your hard-earned money. Always check for Top 10 crypto and make sure your major Portfolio sits around that. Make an exception and invest in low cap coins but this should be 5% or less of your portfolio. Stay away from Shitcoins.