There is some information that those who want to gain from altcoin investments or those who do not want to make losses should definitely know.
First of all,
altcoin
is a general name given to all cryptocurrencies except Bitcoin. Alternative cryptocurrencies that have been launched after the success of Bitcoin.
You need to do some serious research beforehand for the altcoins you will invest. You can use sources that you trust in your research. However, you should definitely examine whether the altcoin you want to invest in has a White Paper, and if so, you should definitely examine it. The purpose of the White Paper is; to provide more information about the relevant coin about its service, technology or methodology.
It is necessary to pay attention to whether it is original or stolen.
You can continue your research with questions such as “Who is on the altcoin team, do they have previous experience?”
“What is the amount of altcoins, will it be produced in a certain amount beforehand or will it be produced by mining?” are the questions that will help you research.
If you have decided to start trading, what is the starting price? Is there a maximum price prediction that it can reach? And on which exchanges is it traded?
Does the altcoin have a planned coin burn schedule? Coin burn is an event aimed at reducing the number of coins that exist by making a certain number of coins unusable and thus increasing the price of existing ones.
Are innovations often shared by the developer team? Is everything announced transparently? Even if there are negative developments, do they do the work to eliminate it? Among the things to watch out for.
Base your investment on the value of the relevant altcoin in
BTC
. The value of the altcoin against the dollar may mislead you. The indicator that you have made a profit is that the price of the relevant altcoin in BTC is increasing, so the amount of BTC you will receive when you sell it shows your earnings. When BTC increases in dollars and your altcoin increases in BTC, you get a double profit.
Altcoins lose their value as BTC from time to time. If you immediately panic and sell, you will make a loss. Remember that you didn’t lose money until you sold your altcoin that you invested and trusted. If the price drops too low, you have the opportunity to buy again.
You need to keep up to date with the news about cryptocurrencies to support your research and investment. Remember that the cryptocurrency market is active 24/7.
Due to the fact that the crypto money market is active, you need to stay away from panic movements in declines or exits. First of all, you need to do your transactions after investigating the cause of large movements. We recommend that you determine the volume of your trades by considering the risks for your investment.
