If you are considering an investment in cryptocurrency, it is imperative that you ask these 3 questions:
1) What is the problem that this coin solves?
2) How does it solve the problem?
3) Who is the team behind the coin?
If all three of these questions can be answered, then there is a good chance that this is a legitimate investment.
What is your favorite cryptocurrency?
What are the three most important characteristics of the cryptocurrency?
Is there something unique about this coin or token
that makes its future bright?
Is it being used by a lot of people? Or, is it just hype?
Is the community around it working hard to improve it? Or, is there as much FUD as FOMO in the community?
The cryptocurrency market is heating up, and it’s not just bitcoin. There are many different cryptocurrencies that you can invest in, with some rising to prominence lately.
If you’re considering adding some of these options to your portfolio, a good place to start is with the three most popular ones: bitcoin, Ether (the coin associated with the Ethereum blockchain), and Litecoin. But before you consider investing in any of them, here are three questions you need to ask.
Are you ready to invest in cryptocurrencies? If so, the first thing to do is ask yourself whether or not you’re really ready. What’s your risk tolerance? Are you willing to lose money on a gamble? Is your investment capital money that you can afford to lose without changing your life?
Cryptocurrency is a hot commodity right now. But even though everyone is talking about it, many people don’t really understand how it works. And more importantly, not many people are asking themselves if they should invest at all.
There’s no doubt about it: cryptocurrency is volatile. Bitcoin, for example, has declined in value by 40% in the past three months and has lost more than 50% of its value since December. Meanwhile, other popular cryptocurrencies like Etherium, Ripple and Litecoin have each seen their values drop by more than half since early January as well.
But what if your investments paid off and you made some serious money with cryptocurrency? How would that change your life? Would you still be able to sleep at night knowing that the value of your currency could go up or down at any given moment?
Before you invest in cryptocurrency, ask yourself three important questions:
ICO stands for Initial Coin Offering and is a way of raising funds through a crowdfunding campaign with the use of crypto-assets as investment. ICOs are similar to IPOs (Initial Public Offerings) which are used by companies to sell shares, but in this case, you can trade in cryptocurrency.
Investing in an ICO is a relatively simple process. You have to be aware that the cryptocurrency market is very volatile, so it is possible that you will lose your entire investment.
Here are three questions to ask yourself before you buy cryptocurrency:
There is a lot of money in cryptocurrency, always investing intelligently is the key to success.
1.Is there a use case for this cryptocurrency? Why does it exist?
2.Is there a real utility for the token you are buying?
3.Does this token solve a real problem?
If you’re thinking about investing in a cryptocurrency, buying tokens during an ICO can be the most lucrative time to purchase.
For example, during the ICO of Ethereum in 2014, the tokens were sold for less than $0.30.
Today, those tokens are worth nearly $3000 each – their value has risen more than 9,000% in less than 3 years!
But I can’t offer any guarantees that the same will happen to Bitcoin or any other altcoin. All I can do is use the same criteria I use when deciding whether to invest in something or not:
1-The final price is yet unknown as it will depend on several factors like market demand, competition and other things that we don’t know yet. That’s why you should not invest all your money into one ICO but instead spread it out among others as well.
2-Since Bitcoin is not controlled by anyone, there is no guarantee that it won’t suddenly collapse and all your money will be lost forever. Of course this is very unlikely to happen but it cannot be ruled out entirely either.
3-You should also consider whether the technology behind a cryptocurrency has real world applications and if it solves any pressing problems. If it doesn’t then there’s no reason for its value