If you’ve decided that you want to make an investment in Cryptocurrency but are not sure which cryptocurrency to choose – let us help you! Our Top Cryptocurrencies to Invest in 2021 page will inform you of which cryptos are currently doing well. Nevertheless, it’s so important that you choose a project that you truly believe in and envision success for in the future. Don’t follow the crowd and the cryptocurrencies everyone else is investing in! Nobody knows the future of a cryptocurrency, so it’s best you make the decision yourself. Make sure you do your research and find out all of the fundamentals before putting a deposit down. Here are 10 questions to find the answers to before choosing a cryptocurrency to invest in…
1. Who is the crypto team?
Who invented the cryptocurrency? What is their background in finance? Who is part of the team? Have they all been successful in finance in the past? these are just a few questions that you should look for when investing in a cryptocurrency. The founder and team behind it are vital in success. You want an ambitious, knowledgable and skilled team with a proven record of success. Needless to say, the cryptocurrency is much more likely to fail with a weak team behind it.
2. Have they got a strong community behind them?
It’s important that the cryptocurrency you invest in has a strong community and a loyal following. It shows that many different people believe in the success of the project. If you notice there is not a strong community behind crypto but you strongly believe in the project – do more research first! You’ll probably find out there’s a good reason for this. A fast and efficient way to find out about the community is through social media, such as Twitter and YouTube. Have a look at what people are saying about it and make your own judgement! Many talented investors give away free advice on their YouTube channels so you’d be foolish to not check them out. They will give lots of advice about your potential investment and ultimately help you make the right choice for yourself.
3. What’s the vision?
The vision behind the cryptocurrency is a huge part of its success. You should find out why the inventor created it and their ambitions for its future success. You need to be thinking long-term when you make an investment because this is what will bring you the most profit. Of course, you can invest for short-term gains but it will always have more risk. Therefore, the project needs to be long-lasting. Can you see the coin being around for AT LEAST the next 10 years? If not, do not invest. The creator and team should have a big future vision for the coin. Also, find out what makes the coin different and a strong competitor against others.
4. What is the technology behind it?
The underlying technology behind the cryptocurrency is ultimately what will be responsible for its success. You need to ensure you understand how the coin is competing against other coins. You should be asking – what makes it different? what makes it better? It will be helpful to look at some of the most successful coins to compare, such as Bitcoin (BTC) or Ethereum. Look at what it was about the technology behind them that made them a success. Then compare to the coin that you’re potentially investing in. Do you believe it’s as strong? If you’re a beginner at crypto, you might find the technology part a little confusing. Watch YouTube videos and get the best understanding you can. You want to choose a cryptocurrency with innovative technology!
5. What is the pricing history?
It’s important to look at the past behaviours and trends of a cryptocurrency for a better understanding. Interactive Crypto is a great website to visit to check the pricing history. It gives access to the prices and charts for almost every cryptocurrency in the market. As well as daily news and updates! You will also be able to access all historical data from the crypto from when the project was first launched. Needless to say, you shouldn’t fully judge a crypto coin on its history, the present success and future envisioned success is much more important. However, its pricing fluctuations will give you a great insight into whether it had a strong history or not. And can give you more confidence in its future if it’s consistent in moving upwards.
6. Have you read the White Paper?
And last but not least, have you read the white paper? This will answer every single important question that you have about cryptocurrency. Every time a new cryptocurrency is released, they will bring out a white paper too. This gives potential investors a detailed insight into the project and outlines what they are investing in. It will include the technology and how it works, future goals and visions, the team and so much more. All of the questions above will be answered in this if you can get your hands on one! If the cryptocurrency that you decide to invest in doesn’t have a white paper, it’s probably not as advanced and professional as you think. The white paper is unquestionably the best source of information on any cryptocurrency.