Blockchain, cryptocurrency, and cryptocoins are hot topics among crypto investors and traders. While popular currencies like Bitcoin and Ethereum are constantly making headlines, there are more than thousand cryptocoins doing the rounds around exchanges.
If you plan to trade in cryptocurrency, you must have thorough knowledge of what you are dealing with. If you are especially a beginner, navigating the world of cryptos can become quite a tedious task considering the technical terms and jargons used in the world of cryptocurrency. Another reason that is likely to come in the way is the relatively infant stage of the technology.
Do Your Own Research
Even though you will have many people to tell you what you need to invest in, do your own research and analysis to see what best suits your needs. Excellent understanding of a coin’s fundamentals helps you to form your own opinion. Check and evaluate the financial health of a company as per its financial statements. Invest in it only if the numbers are good. Here are the things you must do and look into when you start your research on cryptocoins.
Go Through the Cryptocoin White Paper
A white paper is a detailed proposal by the company or development team which explains the mechanics and purpose of the coin. Make sure to read the whitepaper of the coin before deciding to invest.
Get More Information of the Company, Management
Get to know who all comprise of the management team and the advisory board by checking the company website, and LinkedIn profile. If you are unable to find these details, step back and don’t invest immediately. Try and get as much data as possible before you go ahead. Look for the green padlock icon in the left of the address bar on the website. It will show if the website is safe and legitimate.
Check Company’s Website, Blog, Forum and Social Media Platforms
Check the website, blog and social media platforms of the company. Ask questions on their website, and social media handles to clear all your doubts before plunging into it. You also get to know the general opinion of people from forums and social media platforms. This is especially critical if you don’t understand the technical jargons used in whitepapers.
You can always find a real gold mine by trading in cryptocurrencies and cryptocoins provided you do your homework well or else you would end up losing more money than you ever thought possible.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]