In this Bitcoin Era, we are looking at technological wonders all around us. As far as it has taken us, we can say that the finance industry is changing. Since last year, we have been experiencing magnificent growth of a very low-key finance system. The cryptocurrencies and how it is skyrocketing towards the profit chain can put the Traditional Finance system behind. But, before investing in a particular cryptosystem, we all should be well-aware of the step-by-step process that can help us evaluate all the factors in our court and all those which can put us into real misery. To know more about bitcoin trading you can visit www.techgenyz.com
Table of Contents
First Step:- Going through the Market Listing
Firstly, you need to know all about the projects you are interested in on a crypto aggregator. Right now, the most reliable forces in this field are- CoinMarketCap, MDEX, and dydX. The overview of any crypto project is formulated here, which can guide you right through it.
Ranking the Projects
Here, you can get the right information about the topmost crypto projects and which are fit for your choice. For first-time investors, it is always better to go with the top 100 ranked projects as these have fewer risks. The projects ranked 1000s, and above are for those who are big birds here.
This is the math department, where the project ranks are determined based on numerics. It is calculated by multiplying the current token prices by the number of tokens actively circulating the market.
History of Costs
The costs just go up and down every instance, and it is advised to the investors to keep an eye on the daily, weekly, monthly, and yearly trading history of the tokens.
Most of the early investors commit real-time mistakes by going to low-priced cryptocurrencies, which seems like a really good deal, but actually, the circulation and total supply can be disappointing. On the other hand, XRP can be witnessed as a fairly good choice for its total supply, trading volume, and trading price, all quite decent.
Second Step:- Checking out the Project Website
It is laughable if you think that you can personally interact with the team to make sure that the project is worthwhile. The simple trick here is to know from which time their projects have started to hit it off high. You can always look up their LinkedIn circle and know all about the inside people and what they are capable of serving next in the court.
Some organizations are customer-centric, and some are employee-centric. It is really important to evaluate their goals to know about this important piece of information.
Every project has bigger fish in its nets. By analyzing these people and how much they are gaining from any particular project, you can formulate a pretty good idea about the outcomes.
Third Step:- Checking the Social Media
It is a necessary step to follow up. Most of the time, you can know about something extraordinary from ordinary circles only. If you have a particular project in mind, you can always look it up on social media platforms such as Twitter, Telegram, Reddit, Discord, and many others. Even the ads up there can help you come next to your desired project.
Fourth Step:- Analyze the Community
Cryptos are thriving in the communities, and if one chooses to ignore this factor, they can be here for the long haul. It is a community that builds a crypto network, let alone saves it from going down. If one currency does not have a strongly formed community, its investment standards and stock prices are likely never to witness any breakthrough. This is why it is always advisable to look for a strong and active community; the bigger, the better.
Fifth Step:- Going through the White Paper
Last but not the least, the documents. When you are investing in a particular cryptocurrency, you must know about their technical, legal, and general information from the certified documents present in various sources. The inner working of any project can be seen in these white papers, which let you know all about the team and project quality. Also, if you find a lot of grammatical mistakes and punctuation errors, it is better to move out of that project.
There is no end when it comes to making things foolproof, and in this Bitcoin Era, if you do not know before putting your penny up in the front, the odds are for you to fail miserably. Therefore, one must analyze a crypto token before investing in it.