CRYPTOCURRENCY 101 (#9): HOW TO IDENTIFY A LEGIT CRYPTOCURRENCY?
In cryptocurrency investment, identifying legit cryptocurrencies is a crucial factor that makes successful investors. Here are four aspects that we should consider to find a decent cryptocurrency:
Whitepaper is the first thing that we should ingest. It includes all the information that we need about one particular cryptocurrency. However, skimming through a whitepaper is sometimes pretty agony. Despite the fact that whitepaper is tough to consume, there is a way to read it fast click here to learn more!
Getting to know who we are investing in is quite essential also. An experienced team is very necessary to make a promising cryptocurrency. We should examine the background of each key member. They usually put up their profiles on social media like Linkedln, Facebook, & Twitter, etc. It is good to know if those key members are experts in their fields. It is even better to know if they have been received good recognition in what they do.
We also have to look up all the projects that have been conducted by those key members. How are those projects now? Are they still running? How is the outcome? Do they have good reputation? If all the answers are “yes”, then we can believe that particular team is proficient and worth to invest in.
Every cryptocurrency is born to serve some certain purposes. It depends on how realistic those purposes are to persuade people to invest in. It is a great opportunity if we are those first ones to find out and take action toward a trend. In fact, we can grab that opportunity by joining cryptocurrency communities out there on social media. We can also find out trends by skimming through cryptocurrency news every day. Nevertheless, we should beware of FOMO and FUD within those news and communities. Find out what are FOMO and FUD here!
Top crytocurrencies always have enormous communities to support. As a reason for that, people believe in the purposes of those cryptocurrencies. That faith urges them to invest in. Therefore, it is relevant to find out whether a cryptocurrency have a strong community to support. We can find out how strong a community of a cryptocurrency is by looking at number of followers on its Telegram, Twitter, & Facebook, etc.
Those are the four factors that determine a decent cryptocurrency. Now, we know how to indentify a legit cryptocurrency.