What Should You Pay Attention To When Investing In Cryptocurrency?
Hello everyone. Due to the dynamism in the cryptocurrency markets, many new players are entering the market. However, most of these players enter the market either with the news they hear on social media or with shit suggestions. I am writing this article especially for people who want to enter the market, who want to invest with their own research, not with the shit suggestions or advice they hear on social media.
First, let me give advice. Never invest with debt when entering a market with such high volatility. It would be better for your mental health, especially if you invest an amount that you can take risks and not upset you. Because the market is volatile, x coin you bought for $ 300 may have been $ 200 when you wake up in the morning. It would be best to invest in a solid and reliable cryptocurrency in such a volatile market.
If there is no problem so far, we can move on to the things you need to pay attention to and the questions you need to research before making your cryptocurrency investments.
What is the problem the project solves? Is there any innovation it brings?
Crypto coins usually have a project. Owners of cryptocurrencies listed on stock exchanges, that is, organizations with cryptocurrency, are usually offered to the market with the claim to solve a problem.
For example, Ethereum is one of the largest cryptocurrencies in the cryptocurrency market, is an open-source system that enables developers to make decentralized projects and distribute them. Some of the goals of Ethereum with this system are to prevent the use of personal information by third parties and to transform the internet into a decentralized platform.
As you can see in this paragraph, the solution provided by this coin(ETH), which is one of the strongest currencies of the market, is in a very important place in the cryptocurrency and blockchain ecosystem. Due to this solution and the convenience it brings, Ethereum has the highest volume in the market after Bitcoin.
Investing in cryptocurrencies with projects such as Ethereum, Bitcoin, Chainlink, Stellar will contribute more to you in the long or medium term. Remember, if a project solves a problem, its use and value increases day by day.
What Is The Volume Of Cryptocurrency?
The volume formed as a result of daily transactions with crypto coins is the daily transaction volume of the crypto coin. The transaction volumes of cryptocurrencies are related to how many people use those coins and what their value is.
The volume of each cryptocurrency is different. Generally, the increase in the volume of a cryptocurrency is a good sign, and a decrease is a sign of a problem with cryptocurrency.
While the volume of widely used cryptocurrencies is generally high, the volume of those with less usage is naturally low. I would not recommend investing in that money if the volume of a project is too low. You may see big differences and problems in trading.
If the volume of a cryptocurrency isn’t very high, but you see the project as solid, you can make your investment by saying that I am investing in the future. However, the key is whether his project is sound or not. If the project doesn’t promise something and its volume is at average or low levels, it will be better to stay away from that cryptocurrency.
How Much Is The Cryptocurrency Supply?
Cryptocurrency supply means the number of cryptocurrency in circulation. The supply of cryptocurrency varies according to the purpose and needs of the project.
For example, Tether’s purpose is to become a dollar-indexed cryptocurrency in the cryptocurrency market. Accordingly, it must have quite a lot of supply to meet the dollar need that will arise in the market.
In another example, the maximum supply of Bitcoin is set at 21 million. There are currently 18,582,906 BTC. However, the reason that Bitcoin is seen as a store of value is due to its limited supply.
Are Corporate Companies Interested? Is It Followed By Corporate Investors?
If I say that the cryptocurrency market is a market that the financial world is just getting used to and even trying to get used to, I wouldn’t be lying. Many cryptocurrencies that haven’t been spoken by most corporate companies in the past years have now entered the portfolio of institutions.
Nowadays, we see that thanks to Bitcoin, many corporate companies have broken their prejudices against the cryptocurrency market. Every week, we hear the news that a different company adds BTC, ETH to the portfolio of a different fund manager. These news are very good for cryptocurrency market players. Because we understand that this market is gradually being accepted by corporate companies.
If you aren’t investing in cryptocurrencies such as BTC, ETH, which are at the top of the market, you won’t be able to see the interest of corporate companies to a large extent. At this point, not only look at the cryptocurrency you are researching, but the project that owns the cryptocurrency. If the project you are researching is in active dialogue with corporate companies and makes agreements with them, this is a good sign.
For example, Hedera Hashgraph. It has agreements with many corporate companies. Some of these companies are Google and IBM. Despite coming side by side with such names, it still ranks 72nd in the market ranking. I believe that its order and value will rise over time. (This Is Not Investment Advice.)
Is The Technical Analysis Positive?
If you learn technical analysis, you can manage your money very nicely. Technical analysis is very important for trading. Apart from instant trades, you can determine your long-term support, resistance zones and take profit or protect yourself from potential dangers.
You can determine potential targets with long-term technical analysis. I think anyone who wants to invest in technical analysis should learn if you don’t have someone you can trust and manage your investments for, or if you aren’t working with fund managers.
There are many free resources for learning technical analysis. You can reach basic technical analysis courses on Youtube.
Is There Any News About Cryptocurrency? Is There A Community?
You should examine whether the cryptocurrency and the project you are planning to invest in is on the agenda of social media, television or newspapers. Don’t pay much attention to traditional media such as television and newspapers. It will be sufficient to research and examine the internet and social media agenda.
Don’t be fooled by short-term advertises while researching the social media and internet agenda. Thanks to such advertisements, especially by some influencers, some cryptocurrencies are instantly raised and then suffer these losses. Try not to be fooled by such advertisements. You can use sites such as Google Trends, LunarCrush to research the agenda of the internet and social media.
I hope it has been a useful content for you. Remember, nobody can manage your money better than you. That is why, when making your investments, you should do your research correctly and start.
