- Importance of Buy-In Price
- Future Possibilities
- Price & Volume
- Doing Your Own Research (DYOR)
Those who have bet on Bitcoin, when it was just priced at a few dollars, would have made a significant amount of profit. At present most of them would have ended up being millionaires and in some cases billionaires.
With the growth in the crypto market, all the investors are searching for the next Bitcoin; the only issue is, identifying the crypto that will excel in future.
Importance of Buy-In Price
When searching for the next Bitcoin, token cost should be considered. For any ordinary investor having little capital, low-priced cryptocurrencies would be the best option.
A small capital will only provide a small portion of Bitcoin, but will provide thousands of crypto which are valued less than a dollar. These low-cost coins are the best example for portfolio diversification.
It is important to find a cryptocurrency that has an upper hand over its competitors and investing in it could turn out to be a wise decision.
One such crypto is Polygon; this Indian project is growing in popularity across the cryptocurrency industry. A new sidechain approach has been employed by Polygon to overcome the shortcomings of Ethereum, which include lack of community control, poor user experience and throughput.
Supply of most cryptocurrencies is fixed. Once the cap has been met, no more tokens will be mined.
If the demand remains stable, and the supply is constrained the prices will go high. Before investing in a cryptocurrency it is necessary to make sure that the entire supply and current circulation of the crypto is properly evaluated.
Price & Volume
Digital currencies with high prices and transactional volumes are likely to have a better future. No assurance of an upward trend in the crypto market can be given, but it is likely that digital currencies will attract huge investor attention.
Doing Your Own Research (DYOR)
If investing in the crypto market, it is wise to diversify your investment instead of investing in a single token. Some important things that should be considered when selecting a token for investment are:
Popularity of Token: Tokens like Bitcoin and Ether are most well-known tokens and are found in every investor’s wallet. The reason for their popularity is because they are older, reliable and safer investments.
A new investor, apart from these two tokens, should look to invest in other altcoins, that have huge potential and that outperform the market.
Market Performance: Before investing in any crypto currency, it is important to examine its past market performance. Past market performance will help the investor in understanding about the token market. If a token has witnessed market highs and lows, then the token is worth investing as it will always recover from any losses. But if a token reveals that it rose for a short term after its launch and is dropping since then, it’s most likely a dump and investing in such tokens should be avoided.
Community Verdict: While an investor as an individual is limited to knowledge and understanding about cryptocurrency, the community is not. The Internet is filled with information related to crypto investment, which should be utilized by an investor.
One should join social media groups, follow twitter handles and go to cryptocurrency forums, to know about the crypto market and which token are hot.
Advice can be taken from community members about any cryptocurrency in which an investor is interested. Cryptocurrency is all about community, so full advantage of it should be taken. The only thing to keep in mind is to not act upon the advice of a single expert, but to perform a proper due-diligence and discussion with other experts about the crypto token before investing.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
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