Newbies Guide: How To Decide What Cryptocurrencies To Invest In.
Currently there are over a hundred thousand cryptocurrencies and more are being created with every passing day. It could be a dillema for some newbies trying to figure out which cryptos to get started with and which of them would actually yield profit in the long run. First of all, I gotta say that a crypto whose price has gone way up already like Bitcoin and Ethereum aren't bad choices of investment as most people think. Some people are of the opinion that when a crypto has increased in price, then it's a no and you should look for the next big thing. While ofcourse you should diversify, not FOMO, and look for the next big thing which could be so risky, it's best to stick to the big boys and already established cryptocurrencies that are promising in a bull market and wouldn't cause so much chaos in the bear market especially when investing for long term.
Use case is also something to look out for when trying to decide which cryptocurrencies would be best to invest in. Hive and Ethereum stands out to me in this case as they both have some of the best use cases I've seen so far. Utility to some extent shows how long a crypto would be relevant and how massive its adoption would be in the future. Yeah, some cryptos with no single use case have gone ×10000 overnight and that's on volatility, but a safe bet would be to stick to those with great use case, as they would be more profitable in the long run.
I don't get involved with any crypto project that make promises or overpromises. A red flag for me is when a project declares they'll wipe out world hunger, give financial freedom, is the next ×1000 etc. These are all just tactics to make people wanna invest in them as the most successful projects out here don't promise much or give promises at all. They just happen.
A fantastic whitepaper is something to also look out for when investing in a project but most people really don't care about this because their goal is just to find who's gonna blow up..lol. But a whitewater shows how serious a project is, the vision, the mission, the goals, the route to these goals etc.
Finally, this post isn't a financial advice, but could guide you into investing better. Please do your own investigation before investing in anything at all and keep an open mind in the space. Thanks for reading.
I think it's a good idea in the beginning to stick with established ones which already have a proven track record of generating positive returns. They're usually less riskier. Whitepaper is also something that isn't put much focus on. Some of them can look complicated especially DeFi protocols but I read them anyway!