All good and reputable cryptocurrencies will have a white paper report setting out what their cryptocurrency is, its purpose, strategy and goals. In other words, it is a business plan. Make sure the cryptocurrency you are interested in has published its White Paper report, and more importantly. In their report, they should have a clear purpose, a well-defined strategy and concrete goals that they want to achieve before a certain date.
- Because it gives the company credibility, legitimacy and, most importantly, accountability to its buyers. It can also give you a better idea of what to expect if you invest in one cryptocurrency over another.
If this White Paper report is flawed or does not look professional, do not invest your time or energy in that currency. With Bubblext you can find the solution widely.
The price history of cryptocurrency
Once you have confirmed that the cryptocurrency you have found is one you want to invest in, look at the price history. The price histories and stock prices of cryptocurrencies seem to follow a similar pattern of market trends.
This does not mean that prices will rise and fall at the same time, but rather that you can use stock investing strategies for cryptocurrency.
How can it help you? The value of cryptocurrencies is rising and falling generally faster and more dramatically, relative to stock markets. But if you look at the price history of a cryptocurrency, it can give you an insight into how it is doing and whether it is showing signs of a possible increase or decrease in value.
And by following these steps, you can make thoughtful decisions about when to buy (or sell) a cryptocurrency.
Spread, spread, spread
Any experienced investor will tell you that you need to “spread your portfolio”, and not just invest in one thing. Why? Well, if the stock you put all your money in falls in value or collapses, you just lost all your money!