First thing I do when any new cryptocurrency becomes center stage or has a lot of hype, I make sure to read the whitepaper. The whitepaper can usually be found on the website of the cryptocurrency itself. Normally the whitepaper gives potential investors an idea of what proof of work or proof of stake the coin is offering. So understanding the utility the coin has to offer is necessary.
Once you have a solid understanding of the fundamentals of that particular coin or token, do additional research. I will always look at the team behind the coins themselves, if I like a particular person and I know he or she has a good track record, that’s a plus.
Let’s say their are some issues the coin may have. I always ask myself what the team is trying to do to solve their problems. Have they done anything to actually help turn the problem into a solution. Even after all this research on one specific coin, I’ll even look to see if a coin is uncorrelated with my current portfolio so I can build a nice low risk/high return crypto portfolio.
Everyone has their own way of investing/speculating. More help on the subject can’t hurt but only help. If there is anything in particular that you guys have done that always works for you, please tell me in the comments below.
Good advice. It's certainly always a good place to start. In the latest episode of Crypto Nights, we've interviewed Jacob Cardarelli, a Crypto enthusiast who share his tips on how to be successful.
Worth a watch!
Anton
Thanks Anton, I’ll give it a watch.