There are a few things you should think about if you’re considering about investing in cryptocurrency. The first step is learning how to invest in cryptocurrency.
How To Invest In Cryptocurrency
Guide 1: Do your research.
Research cannot be overemphasized; many have lost money to cryptocurrency because they have no prior knowledge. Here are 4 factors to guide you in research on cryptocurrency.
1. Scam Indicators:
Check out the credibility of the crypto asset. Our post on How To Identify A Cryptocurrency Scam is a good place to start.
2. Token Supply and Inflation:
The fact that blockchain is built upon open-source software means that all the relevant statistics regarding a token’s economics are available for all to analyze. As the token progresses, it’s essential to keep an eye on the token’s overall supply and the rate at which new tokens are added to the supply.
The higher the inflation rate of a token, the higher its eventual supply, and so buying becomes more important in order to keep prices stable. For example, the hard cap for JPGold Coin is 750 million; there are plans to burn half of it; also there is only about 100,000 in circulation. Supply is limited and left to be determined by market forces, no internal control on pricing.
3. Community Strength:
The strength of a cryptocurrency’s community is just as important as the project itself, but it’s not always easy to determine.
A strong community can also be gauged by looking at how active a project’s fan base is on Twitter, Facebook, or Telegram. Are the engagements organic? This question is important. It’s been observed that overtimes, projects use bots for likes and followers to deceive people, no real life experiences and reviews. One uniqueness of JPGold Coin is our community though not large in numbers, is filled with real people and engagement.
4. Block time and Transaction cost:
When you’re deciding which cryptocurrency to invest in, you need to consider transaction costs and block times.
Block times are how long it takes for a new block or file in a cryptocurrency chain to be generated. Block times and transaction costs can be helpful when prioritizing cryptocurrencies. Transaction costs are the amount of money it takes to send a transaction from one wallet address to another. The higher the cost, the more likely that your transaction will be delayed or rejected by the network.
Guide 2: Buying and Selling of Cryptocurrencies.
Though Bitcoin is the first and most popular cryptocurrency, there are other crypto assets that has given more ROI. One of such that assures high ROI is the JPGold Coin, a digital asset backed with physical gold issued as NFT and crypto tokens.
Many bought crypto during the boom as a means to get rich quick. While a few many so much, many lost their funds raising the questions of the credibility of cryptocurrency.
The most popular crypto market tip is ‘buy low sell high’ however we have had a kangaroo market in the past 4 months after coming out of a terrible bearish market. Buying low is good, however there are other distinct ways of trading.
I. Buy low then sell high
Ii. Buy during presale and IEO sell upon listing
III. Buy digital assets like JPGold Coin backed with physical gold; locked it for 2 years plus. The ROI is assured and could reach 1000%.
IV. Buy at current price then sell when it climbs higher.
Guide 3: Wallets
Cryptocurrency wallets are software applications or websites used to store various cryptocurrencies on your computer, mobile or web-based device. They act as a safe guard for all wallets’ users transactions and controls them. They are created with an open source code. These wallets have public & private keys which let you send & receive digital coins online – making it easier to store, manage & transfer funds securely.
The best wallets will have an easy to use user interface and secured, are coinbase and MetaMask. These can be downloaded on to pc, mac or android. Another option is a mobile wallet like Trust Wallet for IOS for iPhone.
Guide 4: Exchanges
Cryptocurrency exchanges make it easy to buy and sell currencies. A cryptocurrency exchange has the functionality you need to trade cryptocurrencies without a middleman, and is reaching a wider audience as new platforms emerge. You’ll need to create an exchange account, put up the full value of the asset to open a position, and store the cryptocurrency tokens in your own wallet until you’re ready to sell.