The best tips to invest in cryptocurrencies
The rise of cryptocurrencies is just beginning. Thousands of digital currencies are trading on the market, and thousands of minority and institutional investors seek to invest in cryptocurrencies and take advantage of the boom of this new market.
But to invest in the market of cryptocurrencies we need to learn basic but important questions about this market, in this way we will be prepared to face a bearish or bull market.
These are the best tips to invest in cryptocurrencies.
1) There is technology behind the cryptocurrencies, and if there is no technology … Do not invest.
The cryptocurrencies do not exist by the simple fact of existing, they exist because behind there is a technological platform that provides an example service “Blockchain” Tangle “etc.
Let’s go to a simple case, Ethereum is a platform for developers, when we invest in the currency of Ethereum we are actually investing among other things in … Blockchain, intelligent contracts, fast and low-cost transactions, innovation etc.
2) The vast majority of cryptocurrencies not only have a platform that seeks to provide a service or product to humanity, they also have a company behind which seeks to earn money and this is good.
Example of this is the company of Ripple, this company is constituted in California, United States. And its blockchain is created to provide support to banks and financial entities. Every three months the ripple company shows its balance sheets, and through its website you can find its new clients “who are big banks”. Therefore, when we invest in the digital currency XRP we are actually investing in the future of the Ripple Labs company. The more customers the Ripple company has, the higher the price of its digital currency will go up.
3) There are cryptocurrencies on the market that, in addition to seeking a solution to a problem, seek to do so transparently. An example of this is the Cardano platform where scientists and developers from all over the world work, and they do so simply because they develop a platform for mass use without thinking about profits.
Behind many platforms there are NGOs and non-profit societies that only seek to provide a service. How much do the people who develop Cardano earn? They gain prestige, nothing more.
4) Invest where the big ones invest. In many of the new platforms and cryptocurrencies that are in the market are driven by technological giants, example of this is the Chinese platform NEO, behind this digital currency is one of the largest company in the world, alibaba. Others like EOS, a cryptocurrency that behind has an advanced platform that seeks the development of intelligent contracts at low cost has the largest investors in the United States, among them we highlight Lee Fulgor, who invested more than 250 million dollars.
5) In the market there are more than 2000 cryptocurrencies that are trading, many are scams, before investing in any financial asset we have to know what we are investing. Doing a fundamental analysis is a good thing before investing in any cryptocurrency.