Cryptocurrency is spreading like wildfire. No doubt, it is the next big thing. Many companies are adopting it as a means of payment. And every day, new coins are churned out into the public. There are so many to choose from, and honestly, that can be confusing for a newbie. This is the reason why you need to be girded with enough knowledge to navigate these dangerous waters of “pump” and “dump.” Perhaps, you are wondering what coin to buy with the little cash you possess? Then, follow me on this journey of discovery.
Are you an impulsive buyer, or do you buy after careful thought and deliberation?
If you are the former, you would get burnt easily. Cryptocurrency is a volatile market. It can take you to the nearest Tesla showroom or send your creditors after you in the twinkling of an eye.
Why should you invest in a coin?
COMMUNITY
If a coin has a strong team, there is very little probability that it would fail. The success of any crypto project is largely dependent on the size of its community. You should check out the number of people holding the project, the roadmap, and of course, the whitepaper. Good coins have an active community and clear vision. Their community is not focused on getting rich quickly. If you are convinced that they have good plans, then there is a good chance that investing in them won’t be a mistake.
USE CASE
They are digital currencies that are used for online transactions. A project that provides the solution to a problem or makes life easier would stand the test of time. This is why you need to find out the relevance or benefit of a coin before making your purchase.
EXCHANGE TOKENS
There are many benefits attached to holding exchange tokens. Asides from serving as a utility within the ecosystem, it's also a good investment. You can be rewarded with a reduction in trading fees. Some exchanges give all their holders a certain percentage of their exchange fees. You also gain exclusive rights to vote on new coin listings.
MARKET CAP
A coin can only be lucrative when it has a limited supply because the demand remains stable. You should always check the total supply of a coin in circulation.
Buying the right coin would save you a lot of money. Before you buy that next coin, take a deep breath and do your own research.
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