The demand for cryptocurrencies is soaring because several high-profile individuals have shown an interest in them.
However, before putting your hard-earned money into them, keep in mind that there are several things to keep in mind as an investor.
- Choosing the correct cryptocurrency to invest in
One of the most important things for investors to understand is that coins with market valuations that have already crossed the threshold may not continue to grow at the same rate, according to Cashaa- a crypto-friendly neobank. As a result, according to Gaurav, one must select the currencies that still can skyrocket at any moment.
- Verifying the authenticity
The validity of a company is also a major consideration. Gaurav advises against investing in a startup that has recently been started or has a team that is unknown or unsupported. Instead, look for initiatives that have been around for at least a year and a half.
Because the crypto business was in turmoil in 2018 and 2019, many projects have greater credibility if they were there throughout this time. Those who have weathered the storm and are still running strong are less likely to be scammed. Gaurav explains that scammers are more active at peak hours.
- Understanding the value proposition
It is equally critical to comprehend the project’s value proposition. Gaurav advises investors to look into a project’s history and purpose. Determine the purpose of the project. Besides the aim, one must also consider the project’s originality,” he says.
- Proper assignment completion
An investor should do thorough research and analysis before selecting the assets to place their money. According to him, “Those who only invest based on rumor, would undoubtedly not grasp the market behavior and end up losing and then criticizing the business.”
- Recognizing the dangers
Siddharth Menon, WazirX’s co-founder, and COO says that risk assessment is always a good idea before getting involved in any project. There may be tremendous growth in Decentralised Finance (Defi), but this does not imply that all DeFi projects are good. “It’s important to know how robust the technology is,” he says. One can also watch the Stock Market’s latest news in Hindi to get the knowledge.
- Making a long-term commitment
Menon advises investors to buy on the cheap and keep an eye on the long-term picture. If you invested at the peak of the 2017 bull run, Menon says you lost 75% to 80% of what you put in at $19,000. After three years, however, the believers held on to their investments and gained more than 300 percent of their money.
- Be well-informed
Understanding what you’re getting yourself into is essential to making money in cryptocurrency. Blockchain technology powers Bitcoin, the largest cryptocurrency by market capitalization. The underlying technology here, blockchain, has practical applications in the real world. One can also see cryptocurrency news in Hindi to get more and more knowledge.
As many as 58 significant businesses are expected to use blockchain technology in the future, according to a new survey. To locate lucrative investments, learn about the underlying technologies that have real-world applications.