I learned these strategies from social media and shared with you so that you can use this strategy too. But these strategies are more effective for long-term investment.
Strategy Number #1: Need to check coins website.
If you are interested to investing in any cryptocurrency, you have to know about the website of those coins very well. you have to check everything, including team members and if you feel better about their website then you should go to the next step.
Strategy Number #2: Read the "whitepaper"
Read the whitepaper of the coin you are about to invest. Not only ICO’s have whitepapers, every signle coin out there has a whitepaper that explains what they are aiming to do and how and when they plan to execute it. It is essential to check the problem they set out to solve, the solution they have come up with, the team behind the product, and their roadmap to see in which stage they are at the moment. All those are the basics that you need to know before you invest in any cryptocurrency.
Strategy Number #3: Check Market capitalization.
Check the circulating supply of the coin and its price, or on other words the cryptocurency’s market capitalization. Be carefull on your calculations because some coins have partially circulating coins and not the full amount is tradable
Strategy Number #4:- Check Coin liquidity and volume.
Check the trading volume of a coin on the last 24 hours, looking at coinmarket.com is xpressed in USD and BTC. The higher 24h volume reflects a more established coin with a solid base, at least one functioning exchange (where the volume comes from) and perceived value by the trading community.
Strategy Number #5:- Check Developers activitiy.
It is extremely important that you check developers activity. The truth is – anyone who knows how to code can design their own cryptocurrency. And that, unfortunately, comes with a lot of scams. The majority of successful, or promising, coins are announced on forums and through a public software repository such as GitHub.
Strategy Number #6: Check social media presence.
Last but not least check the social presence of the cryptocurrency. It is extremely importand that the cryptocurrency you are looking to invest for long or short term to have a good base of supporters. Look at the social media, but don’t be fooled by facebook and twitter numbers, check the conversation about the cryptoccurency on reddit, or Bitcointalk. There you can find the true community behind a coin and to see if it has a strong support. A coin with strong support has way more chances on succeeding in the market.
Thanks a lot and good luck for the future.
