The world we live in is more open to cryptocurrencies than ever before, yet, this is not exclusively a positive thing from the perspective of a potential investor.
Increased interest means increased funding, which also implies that the change happens at a much faster pace than it did in the past. Consequently, your efforts of staying on top of the game and keeping up with these cryptocurrencies become much harder.
Therefore, you might benefit from some tips on how to keep up with all the upcoming changes.
1. Start from the Cap and the Price
The first tip on researching cryptocurrencies is, naturally, looking at the price of a single coin, as well as examining the overall value of the coin market.
The simplest way to do so is to visit the coin market cap and do your survey. Here, you’ll also be able to check the price, the volume in the last 24 hours, the circulation supply and the change (again, over the last 24 hours).
The platform also allows you to put certain currencies on your watch list, which, more or less, automates your monitoring process.
As of lately, the platform also has an asterisk (*) next to the non-mineable coins, which is a useful addition in a quick survey.
2. ICOs Might Just be the Next Big Thing
While it is, in theory, possible for Bitcoin to bounce back to its peak value, such a thing is not that likely to happen. Your best bet lies in finding a new cryptocurrency startup and exchanging some of your coins (Bitcoin, Ethereum, XRP or Bitcoin Cash) for a huge quantity of these tokens.
The problem here, however, lies in the fact that most of these ICOs won’t make it.
Portals like The Blockchain Review are invaluable resources here as they also heavily focus on the ICO investment.
Still, when investing in something so volatile, it’s usually ideal to invest only what you are ready to lose and hope for the best.
3. Checking the Community
One of the things that often gets overlooked in the face of all these figures and technological terms is the issue of the community. While your first stop should always be to visit customer service, issues get resolved in the forums just as often.
Moreover, the problem with sharing the news lies in the fact that most factions online have an agenda.
The company behind the digital currency aims to portray itself in the best light, while the competition looks to undermine them in any way they can.
In this hostile situation, who do you trust? Well, your best bet lies in the community, subreddits and forums.
4. Diversifying Your Portfolio
No matter how safe you believe your investment to be, the truth is that things always have a potential to go wrong. This is why you need to look at the prospect of cryptocurrency investment as a gamble and observe it as a business instead.
Therefore, you need to abandon the all-in mentality, as well as the idea that you’ll somehow get rich overnight.
Think about several different investments, but don’t be afraid to distribute a different portion of your resources amongst them.
Sure, you should always place the largest portion of the investment money in the most promising cryptocurrency, but you always need to have a backup investment, in case things unexpectedly go wrong.
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5. Regulations, Regulations, Regulations
Perhaps the most important thing related to crypto nowadays is the issue of government regulations. While it is true that the average cryptocurrency awareness, even in technical terms, has risen substantially and people no longer equate digital money with Bitcoin, this particular coin is still the flagship of the industry.
As such, it’s constantly on government organizations’ and institutions’ radar. This also means that most of these regulations first come through Bitcoin, only to be applied to the rest of the market later on
6. Benefits to the World of Marketing
Last, but in no way least important is the fact that the world of cryptocurrencies has an appeal to more than just investors.
For marketers, the use of cryptocurrencies may make it substantially harder to access consumer data, which would, in turn, make the overall analytics more expensive.
Conversely, micropayments may incentivize high-skill freelancers to get engaged in the market, therefore, making this field more lucrative for everyone involved.
Without enough knowledge, research and preparation, getting engaged in any industry may feel more like a gamble than doing business.
Keeping up with cryptocurrencies is vital if you’re to make data-driven decisions and not let your investments be driven by the so-called gut feeling.